Every investment plan for a building covers the roof, the façade and the installations. What is needed for fibre, cabling, WiFi and network management is often missing. Or it is hidden in an "other" item. Yet digital infrastructure is increasingly a fixed part of the property itself. You could call it digital real estate.
CAPEX and OPEX in plain language
- CAPEX is capital expenditure: one-off spending on something that lasts for years.
- OPEX is operating expenditure: what you pay every month or every year to keep something running.
For IT in a building, it looks like this.
Examples of CAPEX:
- a fibre connection into the building, possibly with a second route;
- structured cabling to all floors;
- access points, switches and a firewall;
- a proper technical room with cooling;
- a building management system and other smart systems.
Examples of OPEX:
- subscriptions for the internet connection;
- management and monitoring of the network;
- licences and maintenance contracts;
- updates and security;
- replacing equipment that ages faster than the building.
Why the distinction matters
Cabling often lasts twenty years or more. Access points, switches and software last much shorter. If you only look at the purchase, you miss the costs that follow. And if you only look at the monthly costs, you do not see which investment is coming.
There is also a shift going on. More and more suppliers offer IT as a service, for example WiFi per month instead of a one-off purchase. Part of the CAPEX then moves to OPEX. That can be smart, but it changes the business case. Always discuss the financial consequences with your own financial adviser.
Who pays for what?
In a let building, the question is not only how much it costs, but also who pays. Does the owner invest in the cabling while the tenant pays the subscription? Or does the owner provide WiFi as a service and pass the cost on through the service charges?
There is no right or wrong answer. It just needs to be clear. The IT Demarcation List records who provides, manages and pays for what. That prevents discussion during the negotiation and after handover.
Investing AI-proof
AI and the cloud require more capacity, faster responses and better security. What is enough today may not be in a few years. For owners, that means: invest in the foundation that lasts, such as fibre, CAT6A and room to expand. Then the equipment behind it can grow without having to break things open again.
Tenants are paying more and more attention to this. Also read: renting an AI-proof office: 10 tips for tenants.
Making visible what is still invisible
The tricky thing about digital infrastructure: you cannot see it. The cables are in walls and ceilings. You only notice the quality of the WiFi once the building is in use. As a result, it stays out of plans, valuations and negotiations.
The IT-Label makes it visible. With one code from IT1+ to IT5 and a score per component, you see what is in place, how it performs and where the investments are. For an owner, that is the basis for an investment plan. For an investor or valuer, it is factual input. And in a purchase, it belongs in a digital due diligence.
A kind of MOT for the digital workplace
In the Netherlands, cars go for a periodic roadworthiness test called the APK, much like the MOT in the UK. Not because the car is broken, but because you want to know everything is still in order. You can see the IT-Label the same way: a periodic check of the digital workplace in your building.
Just like the MOT, it is a snapshot. The label shows the condition of the building at the time of the audit, and is valid for two years. After that comes recertification. Have you invested in the meantime? Then a new assessment immediately shows what it has delivered. The IT-Label does not replace existing inspections, such as those of the electrical installation. It complements them for the digital part.
Where do you start?
Start by knowing where you stand. The free self-scan gives an indication in two minutes. Want to know exactly, with a list of what is needed and roughly what it costs? Then a pre-inspection is the logical first step.
Are you a technical manager? Read how to include the digital infrastructure in your maintenance plan and download the free checklist.