You have an on-premises network that contains 100 servers.

A hybrid cloud is a combination of a private cloud and a public cloud.

Capital expenditure is the spending of money up-front for infrastructure such as new servers.

With a hybrid cloud, you can continue to use the on-premises servers while adding new servers in the public cloud (Azure for example). Adding new servers in Azure minimizes the capital expenditure costs as you are not paying for new servers as you would if you deployed new server on-premises.