Reducing IT costs is a top priority for many airlines at the moment. Primarily due to Coronacrisis, many airlines face enormous pressure to cut and reduce costs. Besides reducing staff and expenditure freezes, IT spendings usually reflect a potential cost item that is assessed thoroughly.
Indeed, there are hundreds of ways of how to reduce IT spendings. Vendor streamlining, going for off-the-shelf products instead of in-house development or license optimization, just to name a few.
However, with today’s blog post, I’d like to showcase a probably unorthodox approach we executed with one of our airline clients. An approach that helped this particular airline to save considerable IT spendings based on the usage of our KPI solution.
This Is Not About Selling Our Product — But To Provide Some Unorthodox Thoughts On How To Reduce Cost At Your Airline.
However, this blog post’s intention is not about selling our product but to provide some unconventional thoughts on cost reduction that may help you too.
A Little Background First
To understand the approach, I quickly give you some background on our KPI solution. With the aWall, we provide a solution that calculates airline operations KPIs in real-time. Displayed on large video walls and smartphones, the KPIs provide a comprehensive situational awareness to airline stakeholders. On-time performance, regularity, or misconnex quota are just some prominent examples of KPIs we calculate with our solution. Depending on the airline, we calculate dozens of different KPIs.
Now, in order to be able to calculate all this information, we connect our solution to different source systems. The operations control system, maintenance control system, or passenger service system are examples of the systems we connect.
Accordingly, we collect a vast amount of an airline’s operational data. On top of that, we store the entire data to addtionally provide historical KPIs. Therefore, we operate an entire data warehouse solution in the cloud. This is actually a very profound data warehouse solution, used by some of the leading airlines in the world. Nevertheless, we’ve never promoted this part of our solution since we’ve considered that part of the KPI solution.
An Airline Struggling With Data Warehouse Cost — And Our Idea
However, one airline lately reported issues with their current data warehouse solution. So far, they used an on-premise solution. Now, similar to many other IT systems, Corona exposed the disadvantages of on-premise nature. High fixed costs, reduced flexibility, limited scalability, and so on (oh, and by the way, here’s an entire blog post about this topic).
During that discussion, we came up with the idea of using the warehouse contained in our KPI solution instead of their on-premise solution. The advantages have been quite evident:
- The warehouse already includes a considerable portion of available data
- Many source systems were already connected
- The solution is entirely cloud-based
Summarized, almost everything needed to use that part of our KPI solution as a central airline data warehouse was already available and working. And since our data warehouse solution offers the possibility to access data with 3rd party tools, like Tableau or PowerBI, the airline could directly start using it.
Probably The Most Effortless Cloud Migration Ever
So what’s the exciting part of this story? It is not about our KPI solution. It is about the fact that we collectively found an option that helped the airline to a) get rid of an on-premise solution b) use a scalable and flexible cloud solution — without a substantial effort.
Especially the financial benefits are obvious for the airline:
- They can reduce fixed costs immediately and sustainably
- Possibility to rely on a flexible and scalable cloud cost model
- They could eliminate an entire system
- They reduced complexity
- And they reduced the number of interfaces
Altogether a very straight forward approach that helps the airline to cost cuts. Additionally, they can now rely on a flexible setup perfectly adaptable to the upcoming and certainly challenging months.