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Investing in capital expenditures (capex) can come with several disadvantages, particularly when it comes to technology items like SD-WAN solutions. One significant drawback is the substantial upfront cost associated with capex investments. When you opt for capex, the investment remains a significant financial burden on your organization, tying up a large portion of your budget.

In the case of SD-WAN solutions, choosing capex means investing in bare metal hardware, which can further escalate costs. Unlike subscription-based models or operating expenditures (opex), where costs are spread out over time, capex requires a substantial upfront investment. This can strain your financial resources and limit your flexibility in allocating funds for other essential business needs.

Another disadvantage of capex in technology investments like SD-WAN is the challenge of tech refresh or upgrades. With capex, upgrading hardware and software components can be complex and expensive. Since you’ve already invested heavily in the initial infrastructure, replacing or upgrading components may require additional substantial capital outlay. This can lead to delays in adopting newer technologies or features, putting your organization at a disadvantage in terms of innovation and competitiveness.