I would think that if you buy a lot of hardware with OEM, you would get discounts from manufacturers since you are buying very large volumes from them. How come it doesn't work that way?
The capex vs. opex discussion feels a little one-sided; in my experience finance prefers capex since depreciation is below the line for EBITDA calculations. Also for the example, leases can still be capitalized as long as they cover 75% of the useful life of the thing being leased. (This also undercuts the concern about cash flow impact.)
"carries the risk of outrages being catastrophic" -> s/outrages/outages/
I’d be curious to know why GCP and Oracle are selected as the cloud vendors for Uber
I would think that if you buy a lot of hardware with OEM, you would get discounts from manufacturers since you are buying very large volumes from them. How come it doesn't work that way?
The capex vs. opex discussion feels a little one-sided; in my experience finance prefers capex since depreciation is below the line for EBITDA calculations. Also for the example, leases can still be capitalized as long as they cover 75% of the useful life of the thing being leased. (This also undercuts the concern about cash flow impact.)
Oracle will turn out to be a bad choice, I don't think they're mature enough for this. crazy decision