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Capitalizing on change

 

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24x7, Fall 2004

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Open systems like the HP NonStop server are needed for flexibility, both in terms of making changes at a lower cost—reducing total cost of ownership—and shortening time to market for new features, products, and services.”

Gianni Marostica, president, Sabre Airline Passenger Solutions
“The NonStop system affords us the highest levels of availability, transaction processing speed, and scalability.”

Gianni Marostica, president, Sabre Airline Passenger Solutions

SabreSonic solutions bring more flexibility, lower cost to dynamic airline industry

Gianni Marostica states the case clearly: “Our industry is changing, and our customers’ industry is changing. Airlines need to be quicker, they need to be more flexible, they need to be more cost-oriented, and they need to push innovative solutions out to their customers in order to differentiate themselves. We built our SabreSonic solutions to meet these requirements. And our partnership with HP has really helped bring our vision to life and execute on it.”
Marostica is president of Sabre Airline Passenger Solutions, a division of the travel commerce giant Sabre Holdings. He oversees SabreSonic, a flexible, high-performance suite of passenger management solutions built on an open systems architecture. The SabreSonic solution fits airlines of all sizes, in all stages of growth, in all regions of the world, and utilizing any business model. It can be implemented as a single, fully integrated solution or as standalone components that deliver only the desired functionality.

The core components of SabreSonic—which include SabreSonic Shop (shopping and pricing for airline travel), SabreSonic Res (consolidated customer content for a single view of the customer), and SabreSonic Ticket (fulfillment, including innovative solutions for e-ticketing)—all rely on HP NonStop servers to help airline companies capitalize on change and move even faster than the speed of the industry.

An evolving link

There’s no question that the rate of change is taking off in the airline industry. In the United States, it started with deregulation in 1978; more recently, the emergence of low-cost carriers and the advent of the Internet have increased the state of flux even more dramatically. Similar factors are influencing airline companies around the world.

The link between business and information technology has evolved to keep pace with these changes. “In the past, especially during the regulated environment, prices were basically fixed from a market perspective,” explained Marostica. “If you wanted to increase or decrease a price, you had to get government approval as well as agreement from the airlines. There was very little change, and so IT was essentially geared toward maintenance.”

But deregulation boosted competition sixfold in North America, and Europe has seen a similar increase since the industry was deregulated there in 1996. This growth in competition has forced airlines to become more flexible in order to stay competitive. In turn, the need for flexibility has driven changes in business models, practices, and processes, along with a fundamental shift in the role of the IT infrastructure.

“Everybody knows that technology is an enabler that makes it possible to respond to market demands much more quickly,” asserted Marostica. “Deregulation and growing customer demands are driving change in the market. So is the Internet, which is making everything more transparent in terms of prices and destinations. IT really can help enable the flexibility that today’s airline industry needs.”

Changing the infrastructure

The need for greater flexibility was one of the main reasons Sabre Holdings decided to move key applications from its long-time IBM TPF environment to the HP NonStop platform. “We obviously study the marketplace and understand where the industry is going,” said Marostica. “Although our existing IT system provided solid performance, it did not lend itself readily to change. Open systems like the HP NonStop server are needed for flexibility, both in terms of making changes at a lower cost—reducing total cost of ownership—and shortening time to market for new features, products, and services.”

The numbers are in. Although the architects of the system projected a 40 percent reduction in total cost of ownership (TCO), the actual results are even higher. “In terms of my specific business, it’s sitting at a good, solid 45 percent,” stated Marostica. He attributes the TCO reduction to a combination of several things, including shorter cycle time for transactions such as fare updates, and less development time required to make necessary changes.

Flexible HP technology

In Marostica’s view, the flexibility and performance of HP technology make it an ideal match for the rigorous requirements imposed by SabreSonic solutions. “The NonStop system affords us the highest levels of availability, transaction processing speed, and scalability,” he said. “The technology allows us to scale up or down very quickly, depending on what the requirements are; it replaces the mainframe-based solution, which required much more time and effort to make changes.”

Innovative passenger solutions

Sabre Airline Passenger Solutions uses HP products throughout its operations, with HP NonStop, Integrity, and ProLiant servers at all tiers of the data center.
  • SabreSonic Shop allows airlines to offer their customers the opportunity to search multiple airlines, flights, and fares for desirable itineraries. It also calculates the exact price for ticketing, refund, and exchange purposes. NonStop servers provide the real-time transaction engine, including a master database with schedules, fares, rules, and availability status; ProLiant servers and an Integrity server farm that uses the Linux operating system—with replicated databases linked to the back-end NonStop system database—handle high-transaction shopping functions.
  • SabreSonic Res gives airlines real-time information flow on passengers across all touchpoints. The ability to develop and maintain robust passenger profile information makes it possible to improve customer service through the entire travel service cycle. HP technology includes a NonStop server–based Zero Latency Enterprise (ZLE) architecture and operational data store, integrating customer information from all applications to provide consolidated customer content.
  • SabreSonic Ticket makes it possible for airlines to establish a link to the SabreSonic Integrated Electronic Ticketing hub for cost-effective, efficient connectivity between carriers and their ticketing partner airlines. It also helps airline customers manage agent sales reporting and cash drawer functionality, leading to cost savings and improved customer service. The underlying platform is the NonStop server.

Interoperability is also an essential feature, and one that has contributed significantly to lower total cost of ownership. “As customers become more sophisticated in their use of the Internet, they are no longer looking only at fares,” continued Marostica. “Now they look at fares and dates of travel and potential destination and cost. The seamless interoperability of HP technology has allowed us to partition the workload in a way that makes good business and financial sense.”

For example, the pricing function in SabreSonic Shop requires continuous availability and therefore resides on the NonStop server. The shopping function, by contrast—which puts higher demands on processors and memory, but often does not result in bookings—runs on a powerful but lower-cost HP Integrity server farm using the Linux® operating system. Recently, the addition of 64-bit Opteron processor–based machines to the server farm has reduced TCO even more. “The fact that these servers all work together so well lets us take advantage of the best of both worlds,” stated Marostica.

Partners in innovation

The partnership between HP and Sabre Holdings goes well beyond a vendor relationship. “Sabre Holdings is a technology player,” commented Marostica. “In my specific area, we cater to the airline industry. They look to us—as leaders in the travel industry—to innovate and introduce change; that’s the cornerstone of our company’s culture. What we like about HP is that it’s very focused on innovation and is always looking at pushing the technology envelope.

“Information technology is a facilitator,” he concluded. “If it’s introduced and handled properly, it drives process change and improves processes—and that can only be positive for the end consumer. With all the changes in the airline industry, the HP Adaptive Enterprise vision helps deliver greater simplicity, agility, and value across the organization, making our entire business more successful.”

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For Sabre Airline Passenger Solutions, NonStop systems:

Deliver continuous availability for critical applications

Provide high performance and flexibility for innovative solutions

Have reduced TCO by 45 percent
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