Deloitte · Technology / Finance · Intermediate · 25-35 min
Redesign IT cost structure from CapEx to OpEx model
Redesign IT cost structure from CapEx to OpEx model is an intermediate Deloitte technology / finance case interview that runs 25-35 min. Model the financial transition, identify cost drivers, and plan phased cloud migration that improves flexibility and controls capital requirements. A strong answer works through 5 phases: Current CapEx/OpEx breakdown by asset class; Cloud TCO modeling; Data center consolidation strategy; Procurement and governance changes; Organizational structure and skills.
Last updated 2026-09-05
The brief
A large manufacturing company’s IT cost structure is 60% CapEx (hardware, data centers) and 40% OpEx. Leadership wants to shift to 30% CapEx / 70% OpEx through cloud adoption and managed services. Design the financial and operational transition.
How to approach it
- Current CapEx/OpEx breakdown by asset class
- Cloud TCO modeling
- Data center consolidation strategy
- Procurement and governance changes
- Organizational structure and skills
What a strong answer does
- Model the financial transition, identify cost drivers, and plan phased cloud migration that improves flexibility and controls capital requirements.
- Shift workloads to cloud in waves, consolidate data centers, move to SaaS for commodity apps, design new procurement and cost allocation models aligned to OpEx.
Practice drills
- Build a 5-year CapEx/OpEx model showing transition to target structure.
- Identify which workloads should move to cloud vs. remain on-premise.
- Calculate data center consolidation savings.
- Design new IT cost allocation and chargeback model.
Why this case
Tests financial modeling, long-term planning, and ability to manage structural business model changes.
Adapted from Deloitte Financial Transformation case (official sample).
Cases are written in each firm's style, written and reviewed by working consultants; they are not the firms' own published cases.