How we are helping airlines reduce IT costs

Read on to see how we’ve helped air transport organisations save much-needed IT budget – and take back control of their IT roadmap – at a time when their industry has been impacted dramatically.

As we’ve mentioned in a previous blog post, the air travel/transport industry is currently at a standstill. Now more than ever, organisations in this sector need to prioritise cash-saving initiatives but do so in such a way that doesn’t affect future development – such as cancelling large-scale projects or reducing staff numbers.

One IT expense which can often be overlooked by organisations is vendor support costs; i.e. Oracle and SAP’s maintenance fees, usually charged at ~22% of your licensing purchase price. Vendors like to think that organisations will continually pay these costs, while receiving very minimal support and service in return.

One international airline, however, decided they weren’t going to put up with it any longer, and decided to cut their costs by switching to Support Revolution.

Here’s how we helped them, and how we can help you too.

When vendor negotiations break down

The transport organisation in question were undergoing an expansion project. Through several mergers, they acquired multiple airlines; and came to own a lot of Oracle databases. They were acquiring companies with existing Oracle licences, which they would need to pay support for, even though they didn’t need them.

In just a short amount of time, a large portion of their IT budget was being wasted on disused ‘shelfware’ and overpaying for Oracle’s premium support for these disused licences. They were losing money on software they weren’t using and was due to be decommissioned.

Yet they still had to pay Oracle’s fees. Even though they rarely had to raise an incident with Oracle, their software was up-to-date, supported, and had no pending upgrades.

So why were they paying so much to Oracle?

The organisation’s efforts to renegotiate their contract with Oracle were unsuccessful, so they had to re-evaluate their IT roadmap entirely. A cost-cutting exercise became their top priority, and in a bid to save money, they decided to migrate across to new ERP software. A chance to get away from Oracle, to a better fit for their requirements; plus, it offered an opportunity to ‘right-size’ their estate at a time they desperately needed to.

But even during this transition, they needed to stay supported, so they still had to pay their huge support fees to Oracle…

The Revolution solution

The organisation then analysed alternative options to Oracle’s vendor support and discovered our third-party support. We could provide support for their Oracle systems, and we would cut costs while doing it.

We would effectively unlock their wasted IT budget, which they could utilise for other projects, such as their migration to a new vendor.

Benefits of switching to third-party support

  • The organisation managed to make massive savings. We cut their ERP support and maintenance costs by 50% – significantly improving their value for money.
  • And their savings were made in-year. They managed to cut their largest cost at a time they needed it most; as COVID-19 paralysed the airline sector. The savings they made with Support Revolution significantly helped at this critical time.
  • And not only have they made huge savings but with Support Revolution, they regained control of their IT roadmap. They no longer have to endure Oracle’s price rises and inflexible support terms. While we’re taking care of their support needs, the organisation can reinvest their money into projects that matter to them.
  • We can even support the organisation while they migrate from Oracle to the new vendor. We’ll provide any necessary support and keep their systems functioning – while they’re making huge savings on Oracle support costs in the meantime.

Cut unnecessary costs – and fast!

This international airline is just one example of how we’ve helped our customers; you can find even more examples on our Customers page. We want to help organisations reinvest in their futures and protect their developments, not their vendors’. Amidst the current crisis, we’re here to help see you through.

Find out just how much you could save, straight away: