Why Should Your Travel Company Shift Infrastructure to the Cloud?

The COVID-19 pandemic has highlighted the need for agility and automation and exposed the limitations of legacy systems, as well as the technical debt that organizations have accumulated over the years. Travel and hospitality organizations have recognized that a digital transformation strategy has become critical to the resilience of their business.
05/28/21
By Alexander Shchedrin
Vice President, DataArt Travel and Hospitality Practice
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Why Should Your Travel Company Shift Infrastructure to the Cloud?

In the summer of 2020, Skift partnered with Amazon Web Services (AWS) to conduct a survey of close to 1000 respondents from the travel and hospitality industry, investigating the topic of digital transformation. This research focused on the state of digital transformation plans, the budgets being invested, digital capabilities, talent, staffing and training. The survey also probed the extent of cloud migration.

According to the Skift/AWS research, 9% of travel and hospitality companies are running all of their digital operations in the cloud, 16% are in the late stages of migrating to the cloud, 33% have moved some but not all operations to the cloud, 30% are investigating their cloud options, and the remaining 12% do not intend to move their software to the cloud.

Cloud Adoption Levels of Travel & Hospitality Companies

Source: The 2020 Digital Transformation Report, AWS Travel and Hospitality + Skift

If you are among the 30% of travel and hospitality businesses considering migration to the cloud, and your data center contract expires this year, you should consider a lift-and-shift migration.

A lift-and-shift migration strategy will not unlock all of the benefits of the cloud, but it will allow your business to shift its cost structure from CapEx to OpEx, which will be invaluable during the expected travel industry recovery.

Other benefits from a lift-and-shift migration include:

  • Scalability. One of the primary advantages of the cloud is its flexibility. This means that, when you move to the cloud, you can choose the appropriate instance size to suit your current needs, and modify it later as your business changes. AWS has nearly 400 instances to cater to virtually every business need.
  • Cost Optimization. There are ways to save up to 72% over equivalent on-demand instances via Reserved Instances (RI), up to 90% with EC2 Spot Instances, and up to 72% with Compute Savings Plans. Additionally, depending on the size of infrastructure, you may be eligible for other incentives from AWS.
  • Operational Excellence. As part of a lift-and-shift migration, you can adopt an infrastructure-as-code approach, which significantly simplifies management of your application. Tools like Amazon CloudFormation, Amazon OpsWorks and Terraform can make the process of deployment of your application simple and repeatable. 
  • Speed. Lifting-and-shifting your workloads to the cloud first (with the intent to modernize later) will provide your teams with the opportunity to accelerate their cloud learning curve. This will make further modernization and optimization easier and faster in the future. 

Lift-and-shift is the least complex migration strategy available, leading to relatively short project timelines and lower risks. For example, DataArt Travel & Hospitality practice experts have recently completed a migration to AWS of 37 workloads for a travel company within a period of 75 days, from initial engagement until full migration.

Reach out to DataArt to explore your cloud strategy options today.

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