A capital purchase is a traditional procurement model where an organization buys IT equipment outright, treating it as a Capital Expenditure (CapEx). This model perfectly aligns with the company's requirements: it is a one-time expense, which simplifies budget management and avoids variable costs. It grants immediate and full ownership of the equipment, providing complete operational control over the asset's lifecycle, including customization and maintenance schedules. The plan to accommodate growth in yearly budget cycles is well-suited to the planned, large-scale acquisitions typical of capital purchases.

A. Operating lease: This is a short-term rental model (OpEx) that does not provide ownership of the equipment, directly contradicting a primary requirement.

B. Capital lease: This is a long-term financing agreement. While treated as CapEx, it involves ongoing payments, not a one-time expense, and ownership is not typically conferred until the lease term ends.

C. Consumption model: This is a pay-per-use model (OpEx) with variable monthly costs based on usage. It contradicts the desire for a one-time expense, predictable costs, and direct ownership.

1. HPE GreenLake for Private Cloud Enterprise Solution Brief (Document ID: a00123918enw, Page 2, "The challenge with traditional IT"). This document contrasts the HPE GreenLake model with traditional IT procurement, which it characterizes as requiring "large upfront capital expenditures" and the customer "owning and operating IT infrastructure." This directly describes the capital purchase model sought by the company.

2. HPE Financial Services, "A new way to pay for technology" Brochure (Document ID: 4AA7-9921ENW, Page 2, "Traditional cash purchase (CAPEX)"). This document explicitly defines a traditional cash purchase (capital purchase) as involving "100% of the cost paid upfront" and the customer taking on "100% of the equipment ownership risk." This aligns with the company's desire for ownership and a one-time expense.

3. MIT Sloan School of Management, Course 15.562, "Information Technology Essentials," Lecture Notes on IT Finance. University courseware on IT management consistently defines Capital Expenditure (CapEx) as funds used by a company to acquire or upgrade physical assets like property, industrial buildings, or equipment. This model is distinct from Operating Expenditure (OpEx) models such as leasing or consumption-based services, where the asset is not owned by the user. This academic definition supports capital purchase as the correct choice for asset ownership and control.