How we are helping airlines reduce IT costs in-year

At a time when its industry has been impacted dramatically, we’ve helped an airline reduce costs, save much-needed IT budget, and take back control of its IT roadmap.

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

One IT expense that can often be overlooked by organisations is vendor support costs. Oracle and SAP’s maintenance fees are 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 decided it wasn’t going to put up with it any longer. See how the airline reduce costs by switching to Support Revolution.

When vendor negotiations break down

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

In just a short amount of time, a large portion of the organisation’s IT budget was being wasted on disused shelfware and overpaying for Oracle’s support for these disused licences. It was losing money on software it wasn’t using and was due to be decommissioned.

Yet it still had to pay Oracle’s fees. Even though the company rarely had to raise an incident with Oracle, its software was up to date, supported, and had no pending upgrades.

So why was it paying so much to Oracle?

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

But even during this transition, it needed to stay supported, so it still had to pay Oracle’s huge support fees.

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 its Oracle systems, and we would cut costs while doing it.

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

Benefits of switching to third-party support

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

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