Businesses worldwide are moving away from capex model to an opex model while procuring business critical software.

From a hotel's perspective in the capex model, the hotel would incur expense (capital expenditure) to setup the software. An ideal example would be the PMS (property management software) or HMS (hotel management software).

The capital expenditure includes procuring the right server (hardware) and operating system to install on the server. In addition to that, there are other additional software licences like database (predominantly Oracle or SQL server) and not to forget the actual PMS or HMS software license.

Evidently this is very expensive and has for long forced hotels not to venture beyond PMS/HMS and adhere to manual processes.

However on the other hand businesses with deep pockets were spending a lot of money procuring expensive software to solve their business problems and pain points beyond the confinements of the PMS/HMS.

This created an unfair advantage in the market and in the industry as a whole.

The advent of cloud computing has changed this and has drastically disrupted the almost all industries including and not limiting to hospitality.

Businesses of all types are now dependent on cloud software applications to solve their business problems. This has democratised all industries and empowered all businesses irrespective of their size to compete with each other.

This increased competition has been beneficial to both businesses, service providers and consumers.

All at a fraction of the cost of legacy software applications.