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What Do Sabre Have Left ? 

If Sabre proceed with what we understand to be a dramatic switch from TPF to an architecture based on the Compaq Himalaya servers and a concept known as Zero Latency Enterprise, and bearing in mind they have already outsourced their computer systems and sold their airline outsourcing business to EDS, what exactly will Sabre retain ?

In all the press commentary so far it has been stressed that they will retain intellectual property, basically software and the concepts and services they offer to the travel and leisure industries.

From a company that used to straddle the airline, travel and leisure business like a colossus this seems at first glance to be something of a comedown.  However when viewed purely from a business standpoint it is not so obvious.  Visa, for example, another TPF stalwart, has a love-hate relationship with its TPF environment.  Visa is a hugely successful, cash-rich company that has discovered a rich vein of seemingly un-ending business and profit potential based squarely on its Brand Name.  It has often been said within the confines of Visa's HQ in Foster City CA. that of paramount importance to Visa is its Brand and that some of the other aspects of its business are simply an annoying overhead.   Operating the TPF system that switches the huge numbers of Visa transactions between member banks is one such 'annoying overhead' that Visa would just as soon have someone else responsible for.

Perhaps this is the attitude at Sabre.  They have certainly embraced the Internet and Web business models and are pursuing that market aggressively.   They are definitely trying hard to leverage their reputation as one of the largest providers of travel and leisure services.  In their eyes this does not require them to be operators of the largest CRS/GDS on the planet as well, at least not physically, as they still retain ownership of the Sabre system since it was only their own airline outsourcing business that they actually sold to EDS.

There is always a concern though that when you do not exercise direct control over such key resources you are more vulnerable and that to build up too much reliance on one or more other business entities can be risky, regardless of how water-tight the agreements and the levels of trust at the outset.  Naturally these issues will have been thoroughly explored both in the Boardrooms and no doubt countless up-market restaurants and golf clubs since this deal was first suggested.    EDS for their part are experienced in the outsourcing game and should prove a reliable 'partner'.    Perhaps the only possible 'fly in the ointment' could be the level of success of the new system itself and how well it will work out in practice..   For a business that has set itself up as not only a Leader in technology provision but as an Innovative and Visionary user as well over the years this latest revolutionary change has to work, and work spectacularly well.  If not I cannot imagine too many large corporations choosing to employ as consultants the same company that mishandled their own systems in what would surely turn out to be a spectacular failure.