Second scenario – technology architecture

With a tough year like 2020, ABC Trading is planning for a 20% budget cut, and many aspects of the organization, including the IT expenditures, must be re-evaluated and reduced to meet the new budget. IT expenditures are categorized into two main categories: Capital Expenses (CapEx) and Operational Expenses (OpEx). CapEx are the expenses on the purchase and acquisition of new assets such as new hardware, software, or owned facilities. OpEx on the other hand are the periodical and continuous expenses that occur as a result of operating IT resources such as human resource salaries, subscription-based software and infrastructure, utility bills, rented facilities, and other similar types of expenses.

This example has been chosen to illustrate a simple example of changes that can occur at the technology layer, which in your case could be a cloud migration project, an upgrade to the existing technology stack, or the shutting down of an...