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Pegasus Solutions Books Azul for IT Consolidation


“Azul has provided Pegasus with increased reliability and predictability as we continue to scale our infrastructure to meet ever-increasing demand…The solution is also unique in offering true economy of scale as we continue to deliver increasing service levels to our customers.”Dennis Law, Senior Vice President Product Management

“As a long time user of Azul’s Vega appliances, we are excited about Zing LX as it allows us to expand the scope of applications which can now benefit from Azul’s unique Java technology. Hospitality transactions are extremely latency sensitive and the design of the new LX platform will allow us to reduce unnecessary latency.”Tim Kieschnick, VP of Enterprise Architecture, Pegasus Solutions, Inc.


Pegasus needed to scale its Java infrastructure to handle dramatic growth in look-tobook ratios.


The Azul JVM and Compute Appliances allow Pegasus to handle more load on fewer servers.


  • Reduced capital expenditures
  • Lower operating costs
  • Dramatically improved scalability

Dallas-based Pegasus Solutions Inc. (Nasdaq: PEGS) is the critical technology backbone of the hotel industry, powering the majority of electronic hotel reservations around the world. Founded in 1989, Pegasus provides services to hotels and travel distributors, including more than 60,000 properties, 130 hotel brands, and the majority of the world’s travel agencies.

Pegasus’ services include central reservation systems, electronic distribution services, commission processing and payment services, and marketing representation services. Pegasus has 18 offices in 13 countries, including regional hubs in London, Scottsdale and Singapore.

Business Need

Pegasus Solutions provides an electronic distribution system for hotel reservations. The company’s technology connects hotel reservation systems to the major global distribution systems for travel agents and Internet sites for consumers to book hotel reservations. The system enables travel agents and consumers to check room availability at hotels – the “looks” – and then book a room reservation.

In Pegasus’ early years, the looks were confined to travel agents, so the “look-to-book” ratio was only about four looks for every room booked, and the system handled an easy volume of looks each month. However, as use of the Internet grew, websites such as Expedia, Orbitz and lastminute.com, along with hotel chains, began to use the Pegasus system to offer hotel reservations. Travelers themselves were able to look for available hotel rooms, searching again and again, before deciding to book.

The look-to-book ratio increased dramatically, from a manageable four-to-one to multi-hundreds to one, resulting in approximately one billion requests each month. Pegasus quickly realized that it needed a way to build out its shared infrastructure to support the ever-increasing number of looks. Pegasus sought new technology that could offer greater levels of efficiency while allowing Pegasus to continue to grow its infrastructure.


Pegasus turned to Azul for help and in particular, its pioneering network attached processing technology helped drive down costs by pursuing a strategy for application and server consolidation. The benefits of consolidating through the use of Azul solutions were immediately evident to Pegasus. For example, one of Pegasus’ mission-critical applications currently runs on eight 8-way servers. By installing the Azul JVM and an Azul Compute Appliance, Pegasus will be able to replace these eight servers with just two lower-cost 2-way servers coupled with two 1920 Azul Compute Appliances. A second application currently runs on four 2-way servers. Without Azul, Pegasus would need to purchase 50 additional 2-way commodity servers over the next year to support additional customers. With Azul, the four 2-ways will provide sufficient capacity as well as redundancy over the coming year.

Those reductions will lead to drastically reduced capital expenditures and related operation expenses such as maintenance, human resources, service contracts, power consumption, cooling, and real estate. Pegasus will now have the ability to divert spending for other competitive initiatives that will drive more capability, functionality, and ultimately more travel-related services for their customers.


All told, the total cost savings is expected to be approximately 50 percent over a three-year period. “Azul has provided Pegasus with increased reliability and predictability as we continue to scale our infrastructure to meet ever-increasing demand,” said Dennis Law, senior vice president of product management at Pegasus Solutions. “The solution is also unique in offering true economy of scale as we continue to deliver increasing service levels to our customers.”

Pegasus is beginning implementation of the Azul Zing JVM. This software-based solution allows them to expand the scope of applications that can benefit from Azul’s advanced technology.

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