BULLETINS

Cloud Computing is a technology that has been in vogue for quite some time now and (sadly)it has not revolutionized (yet) the IT landscape as we would have expected it to be. However more companies understand the benefits of adopting cloud computing now. Similar is the case with Travel companies. The no: of Travel companies moving to the cloud have been not that great, but at the same time more are looking at the benefits offered by cloud and how it will change the way travel businesses will work and relate/ connect to their customers etc. They are now admitting that there is a sound business sense in looking beyond their own infrastructure and adopting the cloud computing option.

The clear benefits of cloud computing are agility, flexibility and elasticity. It is a new form of services delivery rather than a new technology. For travel companies it gives the never before opportunity to move fast and to launch new products or scale their systems without incurring the costs and the delays associated with it. Startups now have a unique advantage that it provides a level playing ground by greatly reducing the initial capital costs for entering a technology driven domain like Travel.

Travel companies can leverage the benefits of cloud in terms of software as well as hardware.  Instead of developing an OTA or a Travel booking application from the scratch, they can look at using an application that will be available to them over the cloud and on demand.  Similar is the case with hardware. Instead of spending huge money on servers they can use cloud based hosting services. The advantage here is lower initial costs and then the advantage of scaling up your server at minimum notice.

As per Phocuswright’s study, some of the early adopters for Cloud computing from Travel domain are Preferred Hotels who have moved its data center to an outsourced private cloud.  Another major player using cloud effectively is ITA Software. Their QPX airfare shopping engine is delivered using a SaaS model. Teknokraaft has been working with QPX for the last 1 year and it is amazing to note that all the complicated calculations are powered by distributed systems in the cloud.

For Travel companies, cloud computing can reduce costs, improve productivity and create huge business opportunities. The flipside is that as always established companies are wary and usually slow to adapt to new technologies. It is always the better, faster and cheaper option that wins in the end and keeping that in mind let us hope more travel companies will start using cloud computing options soon.