Definition
Opex, short for Operating Expenses, refers to the ongoing costs required to run a business’s core operations on a day-to-day basis.
Think of Opex as the cost of keeping the lights on-people, software, marketing, support, rent, and more.
Opex vs Capex: The classic comparison
SaaS tools, cloud infrastructure, and managed services are typically classified as Opex, making them easier to approve under operational budgets.
Why operating expenses matter in enterprise sales
- Budget classification: Many buyers have more Opex flexibility than Capex, especially in IT and marketing departments.
- Procurement conversations: Framing your product as an “Opex-friendly” investment can accelerate deal velocity as it skips long capital approval cycles.
- Pricing models: Subscription-based SaaS pricing aligns with Opex (predictable monthly/annual billing).
If you're selling SaaS, you’re usually competing for Opex dollars and not capital budgets.
Common examples of Opex
How Opex is evaluated by finance teams
- Impact on EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)
- Predictability: CFOs prefer recurring Opex with visibility over time
- Flexibility: Easier to adjust than Capex during downturns or pivots
- Cash flow impact: Opex is pay-as-you-go, unlike lump-sum Capex investments
Final takeaway
Opex is the financial heartbeat of modern businesses. If you’re selling a recurring service, your solution is part of someone’s Opex puzzle. The more predictable, defensible, and tied to core business outcomes your solution is, the more attractive it becomes.
In lean years, Capex gets cut. Opex gets scrutinized and only the Opex that delivers measurable value survives.
GPT prompt: Position your solution as Opex-friendly
Act as an enterprise SaaS sales rep. Your prospect is facing capital budget freezes but has operational budget available. Rewrite your pricing email to position your solution as a cost-effective Opex investment with fast time-to-value, monthly billing, and minimal onboarding costs.
