A case study in using AWS SES & EC2 to manage costs for sending newsletters to a growing subscriber base

How CloudX & AWS Helped Systrix IT Reduce Email Marketing Costs by 10x

About Systrix IT

Systrix IT Solutions is a travel technology company providing software solutions for Travel Agencies, Airlines & GDSs. Its primary products are STAX – a travel ERP solution, STP+ – a multi-channel online booking engine solution, and TravelPress – a custom travel website solution with integrated CMS.

The Challenge

Systrix IT Solutions has a digital marketing strategy of which an important component is email marketing. They use a one of the market leading email marketing provider for this purpose and have a subscriber base of almost 50,000 (and growing). With these numbers and new campaigns being sent out twice a month, their monthly costs ran easily into the couple hundreds of dollars.

“With 62,000 free emails every month and $1 for additional 10,000 emails, plus amazing deliverability, great reports, and no restriction on number of subscribers, it really is a no-brainer.”

– Sadique Ashraf, GM, Systrix IT

“We had to pay extra for additional subscribers, and so, every campaign cost more than the previous one. Furthermore, every additional feature (including ‘advanced’ reports) was a paid add-on,” says Sadique Ashraf, GM at Systrix IT. “Scalability was becoming an issue and we needed a solution to contain costs while being able to send out newsletters regularly.” That is when they reached out to CloudX with a straightforward problem description – to reduce the monthly recurring costs while maintain deliverability and ease of use for the marketing team.

Why Amazon Web Services?

“No other major cloud provider has a first party email SMTP service except AWS,” says Tausif Raza, Solutions Architect at CloudX. “In addition to the already great price of $1 for 10,000 emails, AWS also provides 62,000 free emails monthly if SES is used from an AWS EC2 instance.” While AWS SES provides the SMTP service, the GUI for creating marketing campaigns, managing subscriber lists, and reporting is available through a third-party solution called Sendy.

Sendy is a self-hosted email newsletter application that lets you send trackable emails via SES. This combination of SES & Sendy hosted on EC2 makes it possible to send authenticated bulk emails at a very low price without sacrificing deliverability. Its pricing model of a onetime perpetual license at an extremely competitive price makes it the perfect choice for someone looking to reduce recurring costs.

The Benefits

“We started seeing the difference from the very first campaign itself.” says Sadique, “In fact, our first campaign cost us $0 because of AWS Free Tier for EC2 & SES!” AWS SES’s superior email deliverability has also benefitted Systrix IT immensely, and they are now able see more and more subscribers are interacting with the emails than before, and are able to retarget them or reach out to them directly, making the overall marketing campaigns much more effective.

“We really like the pay as you go pricing model as well,” says Sadique, “because when we decide not to send a campaign in a certain month, we don’t have to pay anything, whereas earlier we had to pay the full monthly cost regardless.”

To find out more about how CloudX can help you address your current business challenges with AWS Cloud Services, please contact us at sales@cloudxme.com.