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 Capital Expenditure (Capex) Funds spent to acquire assets, such as computer equipment, vehicles, and land. Capital expenditures are used to purchase assets that will have a useful life of at least a few years. The other major type of expenditure is operational expenditures. Capital expenses are spread over multiple years, with only a portion of the capital expense impacting the bottom line for each of the years.

 Compliance Implementing controls and practices to meet the requirements of regulations, including security, monitoring, and verification that controls meet requirements.

 Digital Transformation Major changes in businesses as they adopt information technologies to develop new products, improve customer service, optimize operations, and make other major improvements enabled by technology. Brick-and-mortar retailers using mobile technologies to promote products and engage with customers is an example of digital transformation. Digital transformations usually include some cloud component.

 Governance Procedures and practices used to ensure that policies and principles of organizational operations are followed. Governance is the responsibility of directors and executives within an organization.

 Key Performance Indicator (KPI) A measure that provides information about how well a business or organization is achieving an important or key objective. For example, an online gaming company may have KPIs related to the number of new players acquired per week, total number of player hours, and operational costs per player.

 Line of Business The parts of a business that deliver a particular class of products and services. For example, a bank may have consumer banking and business banking lines, while an equipment manufacturer may have industrial as well as agricultural lines of business. Different lines of business within a company will have some business and technical requirements in common as well as their own distinct needs.

 Operational Expenditures (Opex) An expense paid for from the operating budget, not the capital budget.

 Operating Budget A budget allocating funds to meet the costs of labor, supplies, and other expenses related to performing the day-to-day operations of a business. Contrast this to capital expenditure budgets, which are used for longer-term investments.

 Service-Level Agreement (SLA) An agreement between a provider of a service and a customer using the service. SLAs define responsibilities for delivering a service and consequences when responsibilities are not met.

 Service-Level Indicator (SLI) A metric that reflects how well a service-level objective is being met. Examples include latency, throughput, and error rate.

 Service-Level Objective (SLO) An agreed-upon target for a measurable attribute of a service that is specified in a service-level agreement.