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Navigating the Clouds
                   Aviation Industry




POINT OF VIEW
         FEBRUARY 2012
Cloud Computing in Aviation Industry - Powered by Clouds




                                                   Cloud Computing in Aviation Industry
                                                   Internet continues to revolutionize the operations of aviation industry,
                                                   generating tremendous value in terms of higher revenues, reduced operational
                                                   costs and customer-centric, globally-distributed ticketing processes. However
                                                   aviation industry is facing some major challenges in the recent times like rise of
                                                   low-cost carriers, rising fuel prices putting pressure on margins and increased
                                                   competition due to easy accessibility of comparative pricing. Cloud
                                                   computing is the technological intervention which may help the aviation
                                                   industry to meet these challenges. A move to cloud computing has the
                                                   potential to not only simplify and accelerate business processes but also
                                                   generate growth with faster product and services innovation, greater flexibility
                                                   to react to increased demands and improved business intelligence and reduced
                                                   costs. Let’s see how aviation industry can utilize cloud:

                                                   ?
                                                   Real-Time Analytics and Business Intelligence
                                                          In Aviation Industry, planning and operations are seamlessly integrated
                                                          with various systems such as Operations Control, Reservation and
                                                          Revenue Management and Crew Management. Constant examination of
                                                          traffic data with previous load factors as well as demand forecast figures
                                                          requires real-time analytics. Traffic prediction and simulation of
                                                          operational discrepancies caused by delays, weather conditions and other
                                                          unpredictable circumstances need in-depth business intelligence.
                                                          Cloud technologies can be used to provision much higher capacity as and
                                                          when needed for real-time analysis in the disruptive events such as
                                                          volcanic eruptions.

                                                   ? Experience
                                                   Higher Customer
                                                          Consistent and reliable performance of customer facing IT systems such
                                                          as check-in counters goes a long way towards sustaining and improving
                                                          customer experience. Traditionally, airlines face a major challenge in
                                                          providing optimum performance over WAN networks due to bandwidth
                                                          constraints and latency underlying airline IT backbone. Due to its
                                                          ubiquitous nature, cloud based environment can provide a more near-the
                                                          end user experience and are not as constrained by bandwidth while
                                                          handling delays/prolonged operations. A happy customer will always
                                                          come back.

                                                   ?with Focus on Core Services
                                                   Cost Savings
                                                          Cloud computing technologies will allow airlines and airports to focus on
                                                          their core business and avoid large scale investment in next generation IT
                                                          infrastructure such as data centers. Many of the world’s major airlines
                                                          receive reservations, inventory, departure control and other software
                                                          services from trusted third party providers. The main attraction of cloud
                                                          shared infrastructure is the lower per unit costs, economies of scale and
                                                          the simpler operations management. Cloud based reservation platforms
                                                          offered on SaaS such as SITA are already becoming increasingly popular.




2                                                  © 2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
Cloud Computing in Aviation Industry - Powered by Clouds




                                                   ?
                                                   Security
                                                          For Aviation Industry, processing customer data and keeping data secure
                                                          is critical from a competitive standpoint. Cloud is getting increasingly
                                                          mature and secure to handle critical data with Tier 3 data centers coupled
                                                          with regulations and frameworks such as ISO-27002, COBIT and
                                                          Sarbanes-Oxley which the airline industry can rely upon. Incident
                                                          investigation can also be easier leading to faster recovery and response
                                                          times. Systems are automatically patched and updated by expert software
                                                          specialists on payroll of cloud provider. They also ensure latest antivirus
                                                          updates and actively monitor intrusions with world class intrusion
                                                          detection system which an airline might not be able to afford. Cloud
                                                          providers bring economies of scale and cost of these security systems is
                                                          distributed across all consumers making it more affordable to the airline
                                                          industry.


                                                   Aviation Industry is at its inflection point; and cloud computing with its
                                                   unique set of benefits can help in reducing cost, improving cash flow and
                                                   increasing effectiveness. In addition to the above benefits there are various
                                                   other areas within the airline operations that can benefit from adopting cloud
                                                   (as you can see below). A cloud on the process block shows where we forecast
                                                   higher affinity to cloud platforms.




                                                        Airlines Management Functions                                      Strategic Airline Functions
                                                             Operations                   Business                      Strategic Business               Capacity
                                                            Management                   Management                     Unit Management                 Management

                                                              Finance &                                                   Routes Planning               Branding and
                                                                                            Reporting                       and Market
                                                              Accounting                                                    Assessment                 Communication

                                                               Crew                   Safety & Security                        Strategic                  Distribution
                                                            Management                    Processes                             Pricing                     Strategy


                                                       Interface with External Agencies                                      Planning and Operations
                                                              Inventory                                                        Cargo                        Baggage
                                                                                          Loyalty Clubs
                                                             Management                                                      Management                     handling

                                                           Ticket Reservation              Promotions                          Check in                  Whether, fuel
                                                             & Distribution                 and offers                        procedures                   reports

                                                              Customer                    Collaboration                          Crew                      Incident
                                                             Relationships                with Suppliers                       Scheduling                 Management

                                                              Invoicing and              Communications                      Maintenance               Route Scheduling
                                                                Revenue
                                                              Management                  / Transactions                     Management                & Flight Dispatch



                                                                                                                          Functions with
                                                                                                  Legend                  affinity to cloud




3                                                  © 2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
Cloud Computing in Aviation Industry - Powered by Clouds



                                                   In order to effectively leverage the cloud computing technology in the
                                                   organization, the CIO of an airline has to ensure that a proper assessment of
                                                   the organization’s IT landscape is made. Adopting cloud has an impact not
                                                   only on your application landscape but also on IT governance and related
                                                   areas. It is recommended that an organization should create cloud strategy in
                                                   line with their business strategy for systematically leveraging cloud computing
                                                   capabilities.


                                                   About the Authors
                                                   Rashi Gupta is a lead consultant with HCL Technologies’ Business and IT
                                                   Transformation Services practice and has been instrumental in developing
                                                   HCL’s cloud migration framework. In last 7 years of her experience she has
                                                   worked on transformation initiatives for Fortune 500 clients spanning
                                                   engagements around Business and IT Strategy, Cloud strategy and value
                                                   discovery. She can be reached at rashi_gupta@hcl.com

                                                   Rupak Rathore is a principal consultant with HCL Technologies’ Business
                                                   and IT Transformation Services practice and is key innovator behind CRI and
                                                   associated frameworks. Over last 15 years, he has helped many customers use
                                                   technology to deliver superior value to businesses. He can be reached at
                                                   rupak.rathore@hcl.com

                                                   Business and IT Transformation Services (BITS) arm of HCL aims to
                                                   increase value of IT while reducing cost and mitigating risks associated with
                                                   such transformation. BITS provides consulting services across the globe and
                                                   has many Global 1000 companies as its customers.

                                                   HCL's cloud consulting services help customers evaluate cloud as part of their
                                                   overall IT service delivery strategy, recommend which enterprise applications
                                                   can be moved to the cloud, target operating model, benefits/risks, people,
                                                   process and technology for using Cloud. The service includes creation of
                                                   enterprise cloud strategy, cloud governance, readiness and migration
                                                   assessments for adoption of cloud platforms.

                                                   Reach us at cloudconsulting@hcl.com




4                                                  © 2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
CUSTOM APPLICATION
SERVICES

ENGINEERING AND
R&D SERVICES



ENTERPRISE APPLICATION
SERVICES



ENTERPRISE
TRANSFORMATION SERVICES



IT INFRASTRUCTURE
MANAGEMENT
                          ABOUT HCL
                          HCL Technologies
BUSINESS PROCESS          HCL Technologies is a leading global IT services company, working with
OUTSOURCING               clients in the areas that impact and redefine the core of their businesses. Since
                          its inception into the global landscape after its IPO in 1999, HCL focuses on
                          ‘transformational outsourcing’, underlined by innovation and value creation,
                          and offers integrated portfolio of services including software-led IT solutions,
                          remote infrastructure management, engineering and R&D services and BPO.
                          HCL leverages its extensive global offshore infrastructure and network of
                          offices in 26 countries to provide holistic, multi-service delivery in key industry
                          verticals including Financial Services, Manufacturing, Consumer Services,
                          Public Services and Healthcare. HCL takes pride in its philosophy of
                          ‘Employee First, Customer Second’ which empowers our 83,076 transformers
                          to create a real value for the customers. HCL Technologies, along with its
                          subsidiaries, has reported consolidated revenues of US$ 3.9 billion
                          (18,334 crores), as on 31 December 2011 (on LTM basis). For more
                          information, please visit www.hcltech.com



                          About HCL Enterprise
                          HCL is a $6 billion leading global technology and IT enterprise comprising
                          two companies listed in India - HCL Technologies and HCL Infosystems.
                          Founded in 1976, HCL is one of India's original IT garage start-ups. A pioneer
                          of modern computing, HCL is a global transformational enterprise today. Its
                          range of offerings includes product engineering, custom & package
                          applications, BPO, IT infrastructure services, IT hardware, systems
                          integration, and distribution of information and communications technology
                          (ICT) products across a wide range of focused industry verticals. The HCL
                          team consists of over 90,000 professionals of diverse nationalities, who
                          operate from 31 countries including over 500 points of presence in India.
                          HCL has partnerships with several leading Global 1000 firms, including
                          leading IT and Technology firms. For more information, please visit
                          www.hcl.com



                          © 2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.

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HCLT Brochure: Cloud Computing in Aviation

  • 1. Navigating the Clouds Aviation Industry POINT OF VIEW FEBRUARY 2012
  • 2. Cloud Computing in Aviation Industry - Powered by Clouds Cloud Computing in Aviation Industry Internet continues to revolutionize the operations of aviation industry, generating tremendous value in terms of higher revenues, reduced operational costs and customer-centric, globally-distributed ticketing processes. However aviation industry is facing some major challenges in the recent times like rise of low-cost carriers, rising fuel prices putting pressure on margins and increased competition due to easy accessibility of comparative pricing. Cloud computing is the technological intervention which may help the aviation industry to meet these challenges. A move to cloud computing has the potential to not only simplify and accelerate business processes but also generate growth with faster product and services innovation, greater flexibility to react to increased demands and improved business intelligence and reduced costs. Let’s see how aviation industry can utilize cloud: ? Real-Time Analytics and Business Intelligence In Aviation Industry, planning and operations are seamlessly integrated with various systems such as Operations Control, Reservation and Revenue Management and Crew Management. Constant examination of traffic data with previous load factors as well as demand forecast figures requires real-time analytics. Traffic prediction and simulation of operational discrepancies caused by delays, weather conditions and other unpredictable circumstances need in-depth business intelligence. Cloud technologies can be used to provision much higher capacity as and when needed for real-time analysis in the disruptive events such as volcanic eruptions. ? Experience Higher Customer Consistent and reliable performance of customer facing IT systems such as check-in counters goes a long way towards sustaining and improving customer experience. Traditionally, airlines face a major challenge in providing optimum performance over WAN networks due to bandwidth constraints and latency underlying airline IT backbone. Due to its ubiquitous nature, cloud based environment can provide a more near-the end user experience and are not as constrained by bandwidth while handling delays/prolonged operations. A happy customer will always come back. ?with Focus on Core Services Cost Savings Cloud computing technologies will allow airlines and airports to focus on their core business and avoid large scale investment in next generation IT infrastructure such as data centers. Many of the world’s major airlines receive reservations, inventory, departure control and other software services from trusted third party providers. The main attraction of cloud shared infrastructure is the lower per unit costs, economies of scale and the simpler operations management. Cloud based reservation platforms offered on SaaS such as SITA are already becoming increasingly popular. 2 © 2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
  • 3. Cloud Computing in Aviation Industry - Powered by Clouds ? Security For Aviation Industry, processing customer data and keeping data secure is critical from a competitive standpoint. Cloud is getting increasingly mature and secure to handle critical data with Tier 3 data centers coupled with regulations and frameworks such as ISO-27002, COBIT and Sarbanes-Oxley which the airline industry can rely upon. Incident investigation can also be easier leading to faster recovery and response times. Systems are automatically patched and updated by expert software specialists on payroll of cloud provider. They also ensure latest antivirus updates and actively monitor intrusions with world class intrusion detection system which an airline might not be able to afford. Cloud providers bring economies of scale and cost of these security systems is distributed across all consumers making it more affordable to the airline industry. Aviation Industry is at its inflection point; and cloud computing with its unique set of benefits can help in reducing cost, improving cash flow and increasing effectiveness. In addition to the above benefits there are various other areas within the airline operations that can benefit from adopting cloud (as you can see below). A cloud on the process block shows where we forecast higher affinity to cloud platforms. Airlines Management Functions Strategic Airline Functions Operations Business Strategic Business Capacity Management Management Unit Management Management Finance & Routes Planning Branding and Reporting and Market Accounting Assessment Communication Crew Safety & Security Strategic Distribution Management Processes Pricing Strategy Interface with External Agencies Planning and Operations Inventory Cargo Baggage Loyalty Clubs Management Management handling Ticket Reservation Promotions Check in Whether, fuel & Distribution and offers procedures reports Customer Collaboration Crew Incident Relationships with Suppliers Scheduling Management Invoicing and Communications Maintenance Route Scheduling Revenue Management / Transactions Management & Flight Dispatch Functions with Legend affinity to cloud 3 © 2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
  • 4. Cloud Computing in Aviation Industry - Powered by Clouds In order to effectively leverage the cloud computing technology in the organization, the CIO of an airline has to ensure that a proper assessment of the organization’s IT landscape is made. Adopting cloud has an impact not only on your application landscape but also on IT governance and related areas. It is recommended that an organization should create cloud strategy in line with their business strategy for systematically leveraging cloud computing capabilities. About the Authors Rashi Gupta is a lead consultant with HCL Technologies’ Business and IT Transformation Services practice and has been instrumental in developing HCL’s cloud migration framework. In last 7 years of her experience she has worked on transformation initiatives for Fortune 500 clients spanning engagements around Business and IT Strategy, Cloud strategy and value discovery. She can be reached at rashi_gupta@hcl.com Rupak Rathore is a principal consultant with HCL Technologies’ Business and IT Transformation Services practice and is key innovator behind CRI and associated frameworks. Over last 15 years, he has helped many customers use technology to deliver superior value to businesses. He can be reached at rupak.rathore@hcl.com Business and IT Transformation Services (BITS) arm of HCL aims to increase value of IT while reducing cost and mitigating risks associated with such transformation. BITS provides consulting services across the globe and has many Global 1000 companies as its customers. HCL's cloud consulting services help customers evaluate cloud as part of their overall IT service delivery strategy, recommend which enterprise applications can be moved to the cloud, target operating model, benefits/risks, people, process and technology for using Cloud. The service includes creation of enterprise cloud strategy, cloud governance, readiness and migration assessments for adoption of cloud platforms. Reach us at cloudconsulting@hcl.com 4 © 2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
  • 5. CUSTOM APPLICATION SERVICES ENGINEERING AND R&D SERVICES ENTERPRISE APPLICATION SERVICES ENTERPRISE TRANSFORMATION SERVICES IT INFRASTRUCTURE MANAGEMENT ABOUT HCL HCL Technologies BUSINESS PROCESS HCL Technologies is a leading global IT services company, working with OUTSOURCING clients in the areas that impact and redefine the core of their businesses. Since its inception into the global landscape after its IPO in 1999, HCL focuses on ‘transformational outsourcing’, underlined by innovation and value creation, and offers integrated portfolio of services including software-led IT solutions, remote infrastructure management, engineering and R&D services and BPO. HCL leverages its extensive global offshore infrastructure and network of offices in 26 countries to provide holistic, multi-service delivery in key industry verticals including Financial Services, Manufacturing, Consumer Services, Public Services and Healthcare. HCL takes pride in its philosophy of ‘Employee First, Customer Second’ which empowers our 83,076 transformers to create a real value for the customers. HCL Technologies, along with its subsidiaries, has reported consolidated revenues of US$ 3.9 billion (18,334 crores), as on 31 December 2011 (on LTM basis). For more information, please visit www.hcltech.com About HCL Enterprise HCL is a $6 billion leading global technology and IT enterprise comprising two companies listed in India - HCL Technologies and HCL Infosystems. Founded in 1976, HCL is one of India's original IT garage start-ups. A pioneer of modern computing, HCL is a global transformational enterprise today. Its range of offerings includes product engineering, custom & package applications, BPO, IT infrastructure services, IT hardware, systems integration, and distribution of information and communications technology (ICT) products across a wide range of focused industry verticals. The HCL team consists of over 90,000 professionals of diverse nationalities, who operate from 31 countries including over 500 points of presence in India. HCL has partnerships with several leading Global 1000 firms, including leading IT and Technology firms. For more information, please visit www.hcl.com © 2012, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.