Capital Expenditures, often referred only as CapEx, are major purchases a business makes of physical assets that are intended to be used over the long term. In IT administration, CapEx is a legacy purchasing model to access new technology — from end-user devices and software to data center servers and networking equipment.
CapEx is intended to benefit the business for more than a year. But as the rate of technical innovation has increased, many original equipment manufacturers and software publishers offer their products through Operating Expense (OpEx) models. This trend has made CapEx less popular for some businesses, so they can avoid obsolescence and accelerate technology modernization.