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Case:

EasyJet Flies High with Cloud Computing

EasyJet is the largest airline in the United Kingdom and the second-largest short-haul airline carrier in the world (behind Ryanair) with more than 800 domestic and international routes in 32 countries. Based in Luton, England, Easy Jet has expanded rapidly since its founding in 1995, propelled by a series of acquisitions as well as fulfilling an important market need for low-cost airline services. EasyJet carries more than 70 million passengers per year. Obviously, having a reliable and robust system for booking and managing reservations while keeping costs low is a key business requirement.EasyJets customers, like those of other airlines, like the idea of being able to select their seats on a given flight when they made their reservations online. However, EasyJets existing reservation system did not have the capability to add this new feature, which required investing in an additional computer center and modifying its IT infrastructure.EasyJets IT departmentfound a better solution. It retained the core reservation system as is and hosted the seat allocation service in the cloud using Microsofts Azure cloud service. EasyJet had tried other public cloud computing platforms, but Microsofts offered a better integration of on-premises and cloud services. EasyJet had used the Microsoft Azure cloud service to build services that communicate wirelessly at airports without running up major airport charges for new services desks.Microsofts Azure cloud enabled EasyJets information system developers to write their own software program code for seat allocation and use as much or as little processing power as needed to test the service. It then turned out to be much faster and cost-effective to have the public cloud actually host the new seat allocation service rather than use EasyJets internal IT infrastructure.EasyJet is adopting a hybrid cloud strategy. It is not moving its entire IT infrastructure to the cloud, only specific functions that its internal IT infrastructure cant easily handle. The new capabilities are integrated with the companys existing IT Infrastructure. By enhancing its systems by adding new features in the cloud, the company is able to get more value out of its earlier IT investments, which amounted to many millions of dollars. CPC Collection/Alamy Stock PhotoWhen an EasyJet customer books a reservation, EasyJets information systems integrate three different technologies. EasyJets web servers handle the process of customers entering their desired travel dates and destinations for flight bookings. The companys reservation system residing in a different computer center presents data on alternative times and prices of flights for customers to choose from. Finally, the aircraft diagram whereusers can select their seats is fully hosted on Microsofts Azure cloud service. The entire experience appears seamless to users.By enhancing its systems to offer allocated seating, EasyJet was able to increase customer satisfaction by 5 percent and add7 percent to its revenue growth according to the companys 2013 annual earnings report. In the following two years, the company increased customer conversion to its website by 13 percent. Selecting seats and boarding flights have become much more pleasant.EasyJets management believes that good customer experience combined with low prices clearly differentiates the company from competitors. The business benefits of offering online seat selection using cloud computing services have made it possible for EasyJet to continue this strategy because it can keep operating costs low while offering customers top-notch services in searching for and booking flights. Airlines on average spend 2 percent of their revenue on IT infrastructure; EasyJet spends only half a percent of its revenue on IT.What if the new seat allocation system enhancement had failed to improve customer service and revenue? EasyJet could have easily turned off the cloud service for online seat selection if it so chose. It is much easier to eliminate a cloud service than to remove the functionality from the companys core internal system.