Which of the following is typically funded by OpEx in IT budgeting?

• A. Acquisition of data center servers.
• B. Ongoing cloud subscriptions and maintenance fees.
• C. Building new data centers.
• D. Purchasing long-term software licenses with upfront cost.

Answer: (B)

In IT budgeting, OpEx covers ongoing, recurring costs for running services, while CapEx covers large, upfront investments in long-lived assets. Ongoing cloud subscriptions and maintenance fees are classic OpEx because you’re paying regularly to use a service and to maintain it, with costs recognized as they occur. In contrast, acquiring data center servers, building new data centers, or purchasing long-term software licenses with upfront costs creates assets that provide benefits over several years, so those are typically treated as CapEx (depreciated or amortized over time). (If a software license is actually a recurring SaaS subscription, that would be OpEx, but the described upfront license purchase is usually CapEx.)