MLOps and data pipeline
MLOps and pipeline spend splits between building and running. Engineering a durable orchestration or data pipeline for a defined internal use can be capitalised as internal-use software under ASC 350-40 or a development-phase intangible under IAS 38. Operating, monitoring and maintaining the pipeline once live is expensed.
Routing by framework
Pipeline and orchestration tooling built for a defined internal use can be capitalised in development phase; operating and maintenance activity is expensed.
Pipeline engineering that meets the internal-use software definition can be capitalised in the application-development stage; monitoring and maintenance are expensed.
Build versus run
The capex-versus-opex line is the build-versus-run line. A funded, feasible project to build new pipeline capability produces qualifying development-phase or application-development cost; keeping the pipeline running, patching it and monitoring it is a period cost ASC 350-40350-40-25.
Allocating shared effort
Engineers frequently split time between building new capability and operating existing systems. Reliable measurement requires a defensible time-allocation basis so that only the directly attributable build effort is capitalisedIAS 38§66.
A platform team spends a quarter half on a new feature-engineering pipeline and half on running existing jobs. With time records supporting the split, the build half is capitalised as internal-use software and the run half is expensed. All figures are illustrative.
- S1IAS 38 Intangible Assets, IFRS Foundation (IFRS). https://www.ifrs.org/issued-standards/list-of-standards/ias-38-intangible-assets/
- S2Handbook: Software and website costs (ASC 350-40 internal-use software), KPMG (US GAAP). https://kpmg.com/us/en/frv/reference-library/2026/handbook-software-website-costs.html