Another advantage resulting from a rehost is the capital resources freed up for the company. The keyword for this context is "OPEX instead of CAPEX".
CAPEX is the accounting expenditure for the expansion of a company's business areas. For example, the purchase of machinery, real estate or servers is attributed to CAPEX. Expenditures in this area lead to a strong capital commitment, since the invested capital is no longer available to other areas.
OPEX, on the other hand, refers to the ongoing operating costs required to carry out business processes. These costs are incurred regularly and are therefore billed monthly, semi-annually or annually. Operating costs include, among other things, the costs of operating virtual machines or servers in the cloud.
By transferring IT systems to the cloud, companies can convert costs in the CAPEX area into costs in the OPEX area. This results in financial benefits for the company. This is because the investment capital spent on the server systems can now be used for the further development of the business models.
This relationship can be illustrated as follows: What is the point of an expensive Porsche for a private individual if it is only driven once a year? It makes far more sense to rent the Porsche once a year and use the capital thus freed up to buy your own property.