What are the key differences between capital expenditure (CapEx) and operating expenditure (OpEx) in software development projects?

Capital expenditure (CapEx) refers to investments in long-term assets like software licenses or equipment that provide lasting benefits to a company. Operating expenditure (OpEx) includes day-to-day expenses like salaries and utilities that are necessary for running the business. In software development projects, CapEx is typically associated with upfront costs for software development tools or infrastructure, while OpEx covers ongoing expenses like salaries for developers and maintenance costs.