Transcript Adoption of IP Within the Aviation Industry

The Changing Face of Aviation
Networked IT
Presentation to
The 3rd Annual Middle East Aviation IT Forum
By
Ray Batt
Director, Network Solutions, ARINC EMEA
Agenda
•
Aviation Market Overview
• Market Dynamics Creating Opportunities for Middle East
Carriers
• High Cost Points of Existing IT Infrastructure and Systems
• Adoption of IP within the Aviation Industry
• Solutions Air Carriers can leverage to reduce costs and
improve performance
• Summary
Agenda
• Aviation Market Overview
• Market Dynamics Creating Opportunities for Middle East
Carriers
• High Cost Points of Existing IT Infrastructure and Systems
• Adoption of IP within the Aviation Industry
• Solutions Air Carriers can leverage to reduce costs and
improve performance
• Summary
Aviation Market Overview
•
Passenger growth to increase globally at
5.3% p.a. over next 20 years
•
Cargo growth by 5.9% in same period
•
Flag carriers need to increase efficiency
and reduce costs to compete
•
IT spend stagnant, need for technology
refresh
•
Few if any more staff
•
Uncontrollable costs rising – fuel, airport
fees etc..
Market Requirements
• Reduce total cost per passenger
• Minimise capital expenditure on infrastructure
• Lower costs associated with managing partners
• Deliver service levels consistent individual site requirements
• Leverage Internet technologies and COTs products
• Deploy operational and business tools that maximise ROI
• Total visibility of services delivered though effective real time
reporting
Agenda
• Aviation Market Overview
• Market Dynamics Creating Opportunities for Middle East
Carriers
• High Cost Points of Existing IT Infrastructure and Systems
• Adoption of IP within the Aviation Industry
• Solutions Air Carriers can leverage to reduce costs and
improve performance
• Summary
Market Dynamics Middle East Airline Trends
•Passenger Traffic up 24%
on 2003
•Aircraft movements up by
9% in same period
•Increasing yields,
profitability and opportunity
for new competition
•Cargo Tonnes up 13% on
2003
•Reflects increasing
disposable income
•DXB major cargo hub
Why such dramatic growth?
• Middle Eastern peoples disposable income growth
• Migrant workers supporting expansion of GCC economies
• Increasingly younger populations keen to travel
• Windfall revenues from Oil Price rise increasing spend on
infrastructure projects
• Free Trade Agreements open market opportunities
• Largest import markets by value Saudi Arabia, UAE and Egypt
• Since FTA Jordanian exports to US increased from $63m in
2000 to $1.1billion in 2004.
Agenda
• Aviation Market Overview
• Market Dynamics Creating Opportunities for Middle East
Carriers
• High Cost Points of Existing IT Infrastructure and Systems
• Adoption of IP within the Aviation Industry
• Solutions Air Carriers can leverage to reduce costs and
improve performance
• Summary
Key IT Focuses for IT Departments
•
Deploy new systems that deliver short term payback
•
Live within changing budget constraints by leveraging alternative
technologies
•
High staff turnover increases user support and training costs
•
Scarcity of legacy support drives migration
•
Maintain ageing desktops and terminals
•
Support customer service improvement
Service Level “Pick n Mix”
Redundancy
Where Does The Aviation IT Budget Go?
Multiple desktops that need managing,
supporting and upgrading.
Where Does The Aviation IT Budget Go?
Access and share information with hosts
and applications globally
Where Does The Aviation IT Budget Go?
Revenue generating routes originate
from your world
Where Does The Aviation IT Budget Go?
Network Infrastructure that reflects another age
Agenda
• Aviation Market Overview
• Market Dynamics Creating Opportunities for Middle East
Carriers
• High Cost Points of Existing IT Infrastructure and Systems
• Adoption of IP within the Aviation Industry
• Solutions Air Carriers can leverage to reduce costs and
improve performance
• Summary
Adoption of IP Within the Aviation Industry
• IP is the key facilitator for many of the new initiatives!
• 40% of Carriers still to migrate to IP from Legacy
• IATA’s Simplifying the Business driving E-Ticketing and CUSS
• Host to Host messaging moving to MATIP now…!
• Real and tangible savings being achieved, $3million by one ME carrier
with ARINC’s Global Partner Connect Service
• Some partners slow to adopt IP = holding back savings
• RFC 2351 MATIP standard allows wide variations in implementation =
cost
• Back Office Systems make extensive use of IP
• Intranets, Remote Access, Roaming WiFi GPRS etc
• Applications IP Enabled, SAP, eMail etc
• Traffic Prioritisation and Class of Service support required
• Most Front Office Systems not integrated
• Mainly use gateways to legacy applications
• No connectivity to back office systems
• Mission Critical Applications (RES/DCS etc)
Adoption of IP Within the Aviation Industry
• All Airlines have some level Internet presence
• Level of Customer Interaction varies
• Sales Only, Check-in, Seat Selection, Frequent Flyer Program
Adoption of IP Within the Aviation Industry
• Increasing deployment of IP VPNs over MPLS infrastructure
• Predominantly back office systems
• Regulation and monopolistic lack of competition in Middle
Eastern market holding back savings – Competition drives
Choice = Lower Cost
• Trials of self built Internet based VPNs – “DIY Networks”
• Varying levels of success, network management and ISP
relationship problems.
• Security policy enforcement issues
• Virus protection issues
• VoIP
•
•
•
•
No significant take up unless you include Skype
Some regulatory restrictions preventing take-up
Massive replacement costs
Telco’s deploying VoIP in core and reducing call charges
Agenda
• Aviation Market Overview
• Market Dynamics Creating Opportunities for Middle East
Carriers
• High Cost Points of Existing IT Infrastructure and Systems
• Adoption of IP within the Aviation Industry
• Solutions Carriers can adopt to reduce costs and improve
performance
• Summary
Optimising the Infrastructure
• Multi-carrier VNO architecture brings competitive choice and
removes technology dependencies;
• Best fit solutions for each location, using Broadband DSL and
Wireless, and MPLS (AviNet Private IP)
• Refresh common use environment with Open Airport
architecture, enable front office user integration with back office
systems (AviNet Airport)
• Leverage commercial applications to
replace dedicated industry messaging
client (AviNetMail and MHS)
• Optimise IATA messaging to drive down
costs throughout the business. (AviNet
Type B and Global Partner Connect)
• Harnessing the global capabilities of the
Internet (AviNet Broadband)
Integrating the Internet
“Managed properly, the Internet has finally become a viable
and attractive network solution” – SITA
At ARINC we agree!
Today ARINC are the only global services provider for the Air
Travel Community with a Managed Broadband Capability in
150 countries via 400 partner ISP’s
Enabling: The Power of the Internet with Lower Cost, Security, End to
End Management underpinned by robust SLA’s & 2 Classes Silver and
Bronze (99.5 to 99.9% availability)
ARINC now offers AviNet Broadband in partnership with Vanco LLC
the world leader in multi-country DSL delivery and support
The Internet with integrated security in place is indeed now a viable
and attractive network solution!
With Gartner forecasting that the Internet will be good enough for over
70% of business-to-business network traffic by 2007 (1)
(1) From a presentation to Gartner Symposium ITXPO 2003 by Neil Rickard, entitled ‘The Ultimate Network Architecture for Real-Time Enterprises
ARINC ‘s VNO Model “The Best of Both Worlds”
•
Robust Core Network with MPLS (6
CoS Supported)
•
Multi-Carriers – Global, Regional
and Macro Partners in over 220
countries
•
Multiple Access Technologies with
various redundancy solutions
AviNet Private IP
•
Wireless and Mobility Services
AviNet Wireless and Opti-Fi
•
Integrated Managed Broadband in
150+ Countries offering Public and
Private Internet services
AviNet Broadband
•
Consultancy and Professional
Services
AviNet Professional Services
An Integrated Infrastructure Approach
Aviation and Airports Operational Services, Products, Content and Applications
AviNet
Messaging
Services
ACARS
AviNet Network Solutions
AviNet
Private
IP
AviNet
Broadband
AviNet
Remote
ARINC Global Network
AviNet
Security
AviNet Messaging Services – IP Migration and Legacy Conversion
AviNet Global Partner Connect and AviNet Type B
With attractive pricing plans and elimination of legacy infrastructure,
AviNet Global Partner Connect and AviNet Type B is an enabler to IP
Migration with “Any to Any Connectivity”
Protocol conversion functions between you and each of your trading
partners including;
MQ to MATIP
IP to X.25
X.25 PVC to SVC
XML to any other format
Support for proprietary and custom message formats and headers
Full end to end proactive management of all messaging and network
elements and single source responsibility “turn-key”
AviNet Network Solutions
• Overcome the 20 year technology trap
• Robust global backbone interconnecting competitive carriers to
provide IP aggregation with any to any connectivity
• Enables “best choice” access technology and carrier
optimisation.
• Only vendor to provide SLAs over Internet
• Don’t go West to get to the East
– Optimise application response
– Truly enables convergence
Global Belt to Optimise Latency
London
Frankfurt
Chicago
New York
San Francisco
Washington
Q1 ‘06
Dubai
Q1 ‘06
Bangkok
Singapore
Brisbane
Sydney
Perth
Melbourne
Auckland
Christchurch
Thinning the Desktop – Optimising Performance in IP Networks
•
Traditional fat clients Windows desktops difficult and
expensive to manage..
•
Local processing requires, more costly, higher
performance workstations
•
Modern applications ideal for thin client operation
•
Centralised application processing lowers desktop
specification and cost
•
Absolute control over desktop, improves
productivity and simplifies management
•
Linux, X-Windows and OpenOffice deliver a low
cost, high performance and high quality alternative.
•
Is it ready for the Desktop?
• Extensively used for high performance and
high availability servers
• German Government makes extensive use of
Linux desktops
• China and Taiwan governments use
StarOffice a derivative of OpenOffice
Summary
•
“Smartsource don’t Outsource”
•
Build solutions around alternative
products that optimise performance and
reduce costs.
•
Defer the cost of change through
innovative revenue based options
•
Challenge they way you do things today
•
ARINC a longstanding communications
integrator for the Air Transport
Community since 1929
There is nothing permanent except
change. Heraclitus
It is not necessary to change. Survival is
not mandatory.
W. Edwards Deming
Thank You!
Sukran
Shakkran