There's always acquisitions and mergers afoot in business, and the events have triggered some HP 3000 migrations. An entity gets acquired by a larger company that doesn't want to integrate MPE. The next thing you know, Windows is getting its call-up into a batting order where the 3000 used to play. (Sorry, baseball season's heating up as it winds down to the playoffs.)
A transaction that was announced this summer continued the journey of the Open Skies application that began in 1998 in the 3000 division of HP. In that fall, CSY General Manager Harry Sterling purchased the application that had helped to drive the 3000 and MPE into the airline business. "Harry, did you have to buy the company?" HP's next-level execs reportedly asked him. He bought it to show how Software as a Service could work on 3000s. HP called it Apps on Tap at the time.
Roll forward to July and see that the Amadeus Group started the purchase of Navitaire from Accenture. Navitaire became the proud owners of a farm of HP 3000s when the company purchased Open Skies early in the previous decade. By 2008, work was underway to move off those 3000s, a farm of more than two dozen of the N-Class servers. The software tracks mileage revenues and reservations and has been used by airlines including Canada's WestJet.
We got a report last week that a final N-Class server still is in operation, but it's destined for a shutdown. If only the overseas airline customers would stop needing historical reports from MPE/iX.
All the customers have been switched over from HP 3000s. We still run an N-Class connected to an XP128 disk array for historical legacy purposes. It could be shut down soon, but we occasionally have a customer ask for some information from it. I guess other countries have unusually long timeframes for keeping detailed records of airline flights.
Navitaire had plenty of airline data business before it purchased Open Skies, but the reservation revenue-tracking software covered a new niche aimed at small carriers. HP only owned OpenSkies for about two years, then sold it to a subsidiary of Accenture. Within 18 months, HP announced its takedown of its 3000 operations. Accenture began developing a replacement called NewSkies, and by 2005 it started to inject it into spots where OpenSkies had served. Before that time, OpenSkies got upgrades from Navitaire, until HP called its halt to MPE/iX futures.
Open Skies, and its progeny New Skies, was always aimed at the low-cost airlines like RyanAir and WestJet. The 3000 had its introduction to airline reservation systems at what was a low-cost airline at the time, Southwest. Of course, Southwest is now the largest US domestic airline in passengers carried, and is paired with overseas partners. At the end of 1993, it bought tiny Morris Air to acquire 14 new Western US destinations, and discovered it'd bought the Morris "online reservation system," back when paper tickets were the absolute standard for air travel. It was like finding change in sofa cushions, including a rare coin.
The New York Times account of the transaction that brought the 3000 into the airline business makes no mention of the server or the software developed in Utah. Legendary CEO Herb Kelleher of Southwest was sharp enough to know low-cost operations would grow the company he founded, however. Morris was shaped like the Southwest of the 1990s, a company that knew a good server when it found one.
Southwest is more focused than Morris on attracting business travelers and is likely to try to attract more by offering more frequent flights. No Southwest routes overlap those of Morris, which will give Southwest a new presence in the Northwest and West, adding 14 cities to its schedule.
Asked about the Morris acquisition, Delta executives appeared sanguine yesterday. "We really don't see that this is changing anything," said Bill Berry, a Delta spokesman. "If we've got to face a competitor, we would rather face a competitor with costs that are much closer to ours."
Delta's reaction prompted a burst of laughter from Mr. Kelleher during a telephone interview yesterday. The cost structures of Southwest and Morris "are virtually the same," he said.
Southwest's adoption of the reservation software made e-tickets so essential that much larger airlines were forced to take up the service. By now, ordering a paper ticket carries a surcharge. Today's Southwest fleet of 600-plus 737s -- built at 3000-user Boeing -- now average six flights per aircraft per day. Delta had to merge with Northwest Airlines to keep up. Southwest turned off its last 3000 in the previous decade, though.
The deeper you go into the Morris-Southwest story, the better it gets. June Morris built her airline out of a travel agency business she ran in the back room of her husband's photo finishing business. Eventually there was a small fleet of chartered planes. Morris was the only female airline leader in the US at the time of the acquisition. The president of Morris Air at the time of the sale was David Needleman, who after leaving Morris went on to found a little operation called JetBlue. And JetBlue used HP 3000s as well, relying on Open Skies software from the start — the App on Tap that HP booked from Day One of JetBlue's operations. JetBlue and Southwest signaled a victory of midrange servers running TurboIMAGE/SQL over mainframes. JetBlue started up with less than a $1 million yearly IT budget.
Open Skies made its money by charging a fee per ticket booked. At the time JetBlue took off, a Computerworld article reported that flight reservations could be made on the Web "and by Touch-Tone telephone."
More than 500 Navitaire employees will go to Amadeus, a company that did 3.4 billion Euros of business last year. Navitaire's sale price was reported at $380 million in a July announcement, a deal that may close as early as next month. In the meantime there's one N-Class 3000 waiting for its retirement date, flying a route with a terminal destination — if one without an ETA.