GRMS Meeting Mod

8/13/2019 GRMS Meeting Mod

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1 PROS Confidential and ProprietaryThe World Leader in Pricing and Revenue Optimization

PROS Group Revenue ManagementGRMS Product Overview

13 14 February 2007


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PROS Group Revenue ManagementFunctional Overview

13 February 2007


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Group Business Process

Receipt of request ~ price and itineraryEconomic evaluation of itineraries

Interactive negotiation

Agree on itinerary option Agree on price and terms

Generate (or update) the group PNRs

Continuous monitoring through post-departure

Business ProcessObjectiveDecision SupportGRMS Features AutopilotO&D and G6Integration


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G6 Work Flow

RequestLoader

Autopilot

RequestQueue

RequestManager

Pricing Assistant Group ShellManagement

RES

O&D

2 3

1

5

4

Mask/RES

Request File

G6

NegotiationModule

G6 Database 6

5

Airline provides interface file

PROS provides interface file

G6 Internal Process

Alternatives Acceptance

5

Materialization Assistant


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G6

O&D

O&D/G6 Integration Daily Process

Reservations

GroupSummary

Table

Total Booked

Group ShellTable

ODGRP Job

GroupDecrement

Manual Process

Manual Process Autopilot Process

RequestQueue

Request Loader

RequestFiles

Internet

MASK

Group PNRBooking Data


7/568 PROS Confidential and ProprietaryThe World Leader in Pricing and Revenue Optimization

Group Summary Table( records wr i t ten wi th

update status)

CurrentGroup

Booked

ExpectedGroupProfile

Integration Version 2; G6 Booking Day Process

G6 OD

Daily GroupBookingfollowing

PNRGeneration

PNR Load

Booking SegClass Table

CurrentGroup

Booked


CurrentTotal

BookedTotal Booked Table

CurrentTotal

Booked

CurrentGroup

Booked

Current Allotment

Booked

Current Allotment

Booked



G6

O&D

Reservations

Offline ABKDownload Job

ABKInput File

ABK Load Job

Booking Table

Flight Seg

Process Job

ODGRP Job

Mark ActualTask

PNR LoadTask

Offline PNRDownload

Formatted PNRInput File

Group PNRBooking Data PNR History

O&D/G6 Integration Nightly Process

GroupSummary

Table

Total Booked

Group ShellTable



Integration Version 2; Night Process

G6 ODGroup Summary Table

( records wr i t ten wi thproc essed status)

Daily PNRBooking

PNR LoadFile

(PNRs created

outside of G6and PNRs

changed orcancelled during

the day)

CurrentGroup

Booked


Booking SegClass Table

ABK File(for each f l ight invo lved in

the PNR Load)

CurrentTotal

Booked

CurrentGroup

Booked

Current Allotment

Booked

CurrentGroup

Booked


CurrentTotal

Booked

Current Allotment

Booked



PROS Group Revenue ManagementMarginal Fare Calculation

13 February 2007



Unit 4: Calculation of Marginal Fares

Methods of Calculating Marginal Fares Method 1 Method 2

Upper/Lower BoundsSum FaresDenied Boarding



Marginal Fares

The Marginal Fares are calculated using 2different methods. Both of these methodsuse the Bid Prices from the PROS O&DSystem, but differ in the following way:

Method 1: Use Group Forecast from G6 Method 2: Direct Application of Bid Prices

A combination of both methods can be used byactivating an upper/lower bound parameter

Marginal FaresUpper/ LowerBounds

Sum FaresDenied Boarding



Method 1: Marginal Fare

Use Group Forecast from Historical Data: Get the Bid Price Vector from O&D. Compute the Bid Price Index based on the

Information from RES.

Index = Compartment AU Total Booked. Let the group size requested be n, Use the

Index to find the next set n available bid prices. Depending on the Seat index, use the Group

Probability to calculate the Adjusted Bid Price. Use Seats Expected to compute Marginal Fare.





Method 1: Marginal Fare Example

Consider a Group of 15 passengers. Let the current bid-price vector for a single leg be as follows:

Seats

Available1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Bid Price 1071 1067 1052 1018 956 871 779 696 635 596 574 553 529 505 484 467 456 449 445 440

SeatsAvailable 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

Bid Price 433 424 414 402 390 379 368 360 353 348 345 342 341 340 340 340

Seats Requested = 15Suppose Mean Group Utilization = .67 And Group Deviation = 0.75Seats Expected = 10.




Consider direct Bid Prices up to seats expected.For each seat beyond seats expected, use Group Probability.The set of bid-prices used for the marginal fare calculation isthen from seat available 36 to 22

)( D E

)(

)(Pr *)()(1)(

)(

1

D E

iobi BP i BP n

D E

D E

iMarginal Fare =

= Seats Expected

)(Pr iob = Prob. Of Seat i




The following tablecompletes the marginalfare calculation:Marginal Fare = 351



SeatsIndex

Bid Price Probability AdjustedBid

Price

36 340 1 340

35 340 1 340

34 340 1 340

33 341 1 341

32 342 1 342

31 345 1 345

30 348 1 348

29 353 1 353

28 360 1 360

27 368 1 368

26 379 0.09 34.11

25 390 0.0038 1.482

24 402 0 0

23 414 0 0

22 424 0 0

351.259




Just use Groups forecasted and optimizedwith O&DCompute the Bid Price Index like Method 1Get the current valid bid-price vector from

the O&D system.Suppose the group size requested is n. Getthe next n available bid-prices from thevector, starting from the seats availableindexThe marginal fare is the average of the n bid-prices






Suppose a group (n = 15) is requesting seats on asingle leg AB. Let the current bid-price vector be asfollows:

SeatsAvailable 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Bid Price 1071 1067 1052 1018 956 871 779 696 635 596 574 553 529 505 484 467 456 449 445 440

SeatsAvailable 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

Bid Price 433 424 414 402 390 379 368 360 353 348 345 342 341 340 340 340



Method 2: Marginal Fare ExampleUsing our previous example:The marginal fare for the group is the average of the 15bid-prices which is 365.75.



Marginal Fare =)(

)(1

D R

i BP n

i

)( D R Seats Requested

The Formula for calculating the Marginal Fare in this

Case is the simple average of the bid prices.




The following table completes the marginalfare calculation:Seats

Available

Probabilityof Group

Size BidPrice36 n/a 340.01335 n/a 340.15434 n/a 340.47933 n/a 341.15932 n/a 342.43831 n/a 344.62230 n/a 348.04629 n/a 353.02128 n/a 359.75927 n/a 368.31226 n/a 378.50425 n/a 389.9124 n/a 401.878

23 n/a

413.60722 n/a 424.289

MarginalFare 365.75





Marginal Fares Upper/Lower Bound

System Parameters can be configured tocalculate both marginal fares. The Upper bound is considered the average of

the bid prices (Method 2)

The Lower Bound is considered the standardgroup logic (Method 1)There may be some scenarios when Method1 would actually produce a higher Marginal

Fare then Method 2. Therefore the system can be configured to usethe minimum of the two calculations:Marginal Fare = minimum (Upper Bound, LowerBound)

Marginal Fares Upper/ Lower

BoundsSum FaresDenied Boarding


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Marginal Fares Upper/Lower BoundExample:

Using the previous examples for Method 1 and Method 2. If the upper/lower boundparameter is activated, the system would apply the minimum of the two.

Method 1 Method 2

SeatsAvailable

Probabilityof Group

Size Bid Price

36 n/a 340.013 35 n/a 340.154 34 n/a 340.479 33 n/a 341.159 32 n/a 342.438 31 n/a 344.622 30 n/a 348.046 29 n/a 353.021

28 n/a 359.759 27 n/a 368.312 26 n/a 378.504 25 n/a 389.91 24 n/a 401.8 78 23 n/a 413.607

22 n/a 424.289

Marginal Fares Upper/ Lower

BoundsSum FaresDenied Boarding

Marginal Fare =365.75

Seats Index Bid Price Probability Adjusted BidPrice

36 340 1 340

35 340 1 340

34 340 1 340

33 341 1 341

32 342 1 342

31 345 1 345

30 348 1 348

29 353 1 353

28 360 1 360

27 368 1 368

26 379 0.09 34.11

25 390 0.0038 1.482

24 402 0 0

23 414 0 0

22 424 0 0

Marginal Fare = 351.26


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Marginal Fare: Upper/Lower Bound Example 2:

In this example, we use the same information as inExample 1, but use group deviation as .67. In this situation,the marginal fare for the lower bound becomes greater thanthe high bound. Therefore, GRMS applies Method 2, sinceit is lower than the lower bound.

Method 1Method 2


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Sum Fares and Denied Boarding

Since the Bid Prices replace the EMSRs, the SumFares are always recommended to be CW for multi-leg flights. The corresponding Leg Bid Prices areadded to compute the Flight Level Bid Prices, whichis then used to compute the Marginal Fares,

Denied Boarding Factor applied in the case whenthe Group Size > Actual AvailabilityIn a Denied Boarding situation, the calculationshave been enhanced in G6. G6 uses the same DB

table as the O&D system to calculate the DB cost.This DB cost would be calculated based on thenumber of seats that exceeds the capacity.

Marginal FaresUpper/Lower Bounds

Sum Fares andDenied Boarding


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Denied Boarding

Group Req of 10Group Exp of 8 Actual Availability now 5DB factor of 2 applied tooverbooked seatsOverbooked Bid Price =Highest Bid Price valueThe Numerator = 4060

The Group Expected = 8

The Marginal Fare = 507

Seat BidPrice Grp. Mat.Prob Results DB Factor DB Results

1 200 100% 200 N/A 2002 250 100% 250 N/A 2503 300 100% 300 N/A 300

4 350 100% 350 N/A 350

5 400 99% 396 N/A 396

6 400 95% 428 2 855

7 400 79% 395 2 790

8 400 50% 275 2 550

9 400 21% 147 2 294

10 400 5% 38 2 75

Without DB Factor: MF = 347


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PROS Group Revenue ManagementG4 vs. G6

13 February 2007


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General Features

Web ApplicationProvides easier support for decentralized groupenvironment

Interfaces

XML input and output formatsWeb Service for CCITIN and PNRGen

PROS Standard ArchitectureStandardized user interface used across allPROS productsImproved quality

GroupCharacteristicsTodays BusinessProcessPotential NegativeImpactsValue Proposition

Group RevenueManagementBusiness SolutionBusiness ProcessObjectiveDecision Support

GRMS FeaturesO&D and G6Integration


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New in G6

Centralized Request QueueEnhanced NegotiationConfigurable Autopilot Rules Auto-AcceptanceFare InputExchange Rate


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Centralized Request Queue

Configurable by context and filtersRequest overview allows direct pricingNew fields enhance filter and sortingcapabilities

SourceRPI Request Priority IndexingExpected revenueStageMaterialization percentage

Centralized RequestQueue

Enhanced NegotiationConfigurable Autopilot Auto-AcceptanceFare InputOther Enhancements


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Configurable Autopilot Rules Automatic Processing 24/7Rules replace fixed system level parametersLink Market Set rules to any combination ofcriteria

Market set sort order determined by AdministratorCan link two rules togetherDirection level Autopilot error messaging

Rule action hierarchy Apply select rules to Auto-Acceptance

Centralized RequestQueueEnhanced Negotiation

ConfigurableAutopilot Auto-AcceptanceFare Input

Other Enhancements


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Autopilot Autopilot allows for processing of requestswithout user interventionThe G6 Autopilot comes with a lot of newfeatures, and provides the facility to set uprules for specific markets, this

Provide flexibility in the decision makingprocess.Will help in assisting the users in handlingrequests for their markets more effectively.

Implement controls required to handle specialsituations like sporting events, naturalcalamities and seasonality.



Other Enhancements


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Autopilot Process

Rules

Rules

Action

Request

Autopilot

criteria

criteria

MarketSet

MarketSet

Action



Other Enhancements


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Auto-Acceptance

User or Autopilot can set Auto Acceptanceduring negotiationUtilizes select Autopilot rules to evaluateaccepted alternatives

Automatically books, rejects or queuesrequest based on action associated withrules

Centralized RequestQueueEnhanced NegotiationConfigurable Autopilot

Auto-AcceptanceFare InputOther Enhancements


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Auto Acceptance

Autopilot Overview Autopilot Process Autopilot Market Sets Autopilot Rules Autopilot ActionsNegotiation

Auto-Acceptance

Queue


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Auto Acceptance

Autopilot Overview Autopilot Process Autopilot Market Sets Autopilot Rules Autopilot ActionsNegotiation

Auto-Acceptance


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Enhanced Negotiation (Flexibility)

Fare pricePassenger number of passengersMinimum seats requestedPre-evaluate all passenger configurations

Flight alternative flight optionsFare and Flight flight alternatives fordifferent prices

Different fare/class per options

Centralized RequestQueue

EnhancedNegotiationRe-designed Autopilot Auto-AcceptanceFare Input

Other Enhancements


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GRMSGRMS GRMS USER USER

G6 - Acceptance Work Flow

AcceptanceRequest

Send to AutopilotBy Analyst

Mini-EvaluationBy Analyst or AAP

New EvaluationBy Analyst

PRICING ASSISTANTEvaluates Accepted options ONLY

Recalculates AVL and ALL other fields (Except GMF)

Display GMF as calculated during the negotiation

A P P R

O V E

Group Shell1. Just Store the GMFdisplayed in thePricing Assistant.

PRICING ASSISTANTRe-calculate everything

Accepted alternatives should be added to thePreferred flight list

PRICING ASSISTANTRe-calculate everything

Accepted alternatives should be added to thePreferred flight list


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Fare Input

Direction level fare inputQuoted faresLocal fares

Directional Quoted Fare Allows the analyst to assess whether the marginof the quoted fare over the marginal fare isacceptable

Centralized RequestQueueEnhanced NegotiationConfigurable Autopilot Auto-Acceptance

Fare InputOther Enhancements


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Trip Duration

The total number of days the grouprequested to stay at a directionInitial Direction must contain at least one rangeSubsequent Directions may contain trip duration

and GRMS calculates range for directionsRequest for A-D A-B: Range Jan-01-2006 Jan-03-2006B-C: Trip Duration: 5

C-D: Trip Duration: 3

Options Trip Duration

Capacities & AU Availabilities


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Trip Duration The following Options/Flights are returned from theReservations system

Options A-B B-C C-D

1 Flt 10101 Jan 06Flt 20106 Jan 06

Flt 30109 Jan 06

2Flt 10202 Jan 06

Flt 20206 Jan 06

Flt 30210 Jan 06

3Flt 10303 Jan 06

Flt 20307 Jan 06

Flt 30311 Jan 06

4 Flt 20408 Jan 06

Flt 30411 Jan 06

All of the Options qualify under the rules for TripDuration but not allcombinations qualify

Options Trip Duration

Capacities & AU Availabilities


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Exchange Rate Process Flow

RequestLoader

AdhocRequest file

XRT Process Store QF

Request files are generated from an external source (RES orMASK)These files are loaded to GRMS via the request loaderDepending on the data passed GRMS will calculate the QuotedFare or Local Fare

The LCU is needed to look up the corresponding exchange ratefrom the table


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Other Enhancements

Macro Bad Data marking tool Allows users and administrator to markhistorical data bad, replacing tag/untagfunctionality

Segment origin and destinationFlight numberDeparture date RangePNR Locator

Image of original request and PNR storedRequest stored to original request tablesOriginal PNR stored for comparison with actualPNRs

Centralized RequestQueueEnhanced NegotiationRe-designed Autopilot Auto-AcceptanceFare Input

Other Enhancements


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Other Enhancements

Configurable Data Collection Points up to 24Enhances post-acceptance maintenanceOffice code handling

Automatically consolidates historical data of the

IATA and office codes

Centralized RequestQueueEnhanced NegotiationConfigurable Autopilot Auto-AcceptanceFare Input

Other Enhancements


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PROS Group Revenue ManagementSwiss G4 Features

13 February 2007


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Swiss Features

Flight ComplexingThe handling of flight complexing functions at the PNR level have beenupdated in the G4 system

Re-evaluationThe re-evaluation process in G4 is unique due its process with RES

Utilization

Uses among other criteria, different group types: A, S, T, CGHI = 1The RES function GHI=1, has been handled in G4

Group Shell Editor RCC FlightsDue the complexing features in RES, this feature considers ownership of thePNR for a multiple carrier situation created by complexing.

AutoPilotThe AP features are different in G4 compared to G6

SMR rate and T class on PNRLOADSegment materialization rate for T class PNRs is a special feature in G4


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Swiss Features

Special Class Handling Allotments X, I, OType class indicators = C & D are handled uniquely in G4 for the P4-G4 integration

T class AllotmentsThe T-class allotment handling features based on the RES are uniqueto P4

Atlantic Excellence Group Desk Filter Atlantic Excellence group desk handling features in G4 wereintroduced based on the Qualiflyer group requirements with Delta.

Waitlist Functions for ReviewHandling of requests on hold

Integration Handling of T, I, O, X Classes.Type class indicators = C & D are handling uniquely in G4 for the P4-G4 integration


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PROS Group Revenue ManagementTechnical Requirements

13 February 2007


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Technical Requirements


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Application Server for EnvironmentThis configuration requires 1 multiprocessor applicationserver and 1 multiprocessor database server.HP and SUN platforms are recommended

Application Server Hardware Configuration Vendor Model Operating System

HP HP integrity rx4640 (rx2620 for TEST) 4- 1.6GHz (w/9MB L3 Cache) Itanium2 CPUs or greater ( 2-1.6GHz w/6MBcache and 400Mhz FSB for TEST) 4 GB or more of RAM per CPU 2-Gigabit Ethernet connectivity to database server 2-73GB 15K RPM disks for local storage 2 fiber attach to SAN storage.

HPUX 11i

Application Server Hardware Configuration

Vendor Model Operating System

SUN SF E6900 20-UltraSPARC IV 1.8Ghz CPU (16-UltraSPARC for TEST) 4GB or more of RAM per CPU (3 GB for TEST) 2 -Gigabit Ethernet connectivity to application server 2-73GB 15K RPM disks for local storage 4 fiber attach to SAN storage

Solaris 10


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Database Server for EnvironmentThis configuration requires 1 multiprocessor applicationserver and 1 multiprocessor database server.HP and SUN platforms are recommended

Database Server Hardware Configuration


HP HP integrity rx4640 4- 1.6GHz (w/9MB L3 Cache) Itanium2 CPUs or greater 4 GB or more of RAM per CPU 2-Gigabit Ethernet connectivity to database server 2-73GB 15K RPM disks for local storage 2 fiber attach to SAN storage

HPUX 11i

Database Server Hardware Configuration


SUN SF E6900; 16-UltraSPARC IV= 1.8Ghz CPU 3GB or more of RAM per CPU 2 -Gigabit Ethernet connectivity to application server 2-73GB 15K RPM disks for local storage 4 fiber attach to SAN storage

Solaris 10


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Application Server forTest EnvironmentThis configuration requires 1 multiprocessor applicationserver and 1 multiprocessor database server.HP and SUN platforms are recommended

Test Application Server Hardware Configuration


HP HP integrity rx2620 2- 1.6GHz(w/6MB cache and 400Mhz FSB) Itanium2 CPUs or greater; 4GB or more of RAM per CPU; 2-Gigabit Ethernet connectivity to databaseserver; 2-73GB 15K RPM disks for local storage; 1 fiber attach to SANstorage.

HPUX 11i

Test Application Server Hardware Configuration


SUN SF E2900; 12-UltraSPARC IV= 1.5Ghz CPU; 4GB or more of RAM per CPU;2 -Gigabit Ethernet connectivity to application server; 2-73GB 15K RPMdisks for local storage; 4 fiber attach to SAN storage

Solaris 10


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Database Server forTest EnvironmentThis configuration requires 1 multiprocessor applicationserver and 1 multiprocessor database server.HP and SUN platforms are recommended

Test Database Server Hardware Configuration


HP ; 4 GB or more of RAM per CPU; 2-Gigabit Ethernet connectivity to otherservers; 2-73GB 15K RPM disks for local storage; 1 fiber attach to SANstorage.

HPUX 11i



SUN SF E6900; 16-UltraSPARC IV= 1.8Ghz CPU; 3GB or more of RAM per CPU;2 -Gigabit Ethernet connectivity to application server; 2-73GB 15K RPMdisks for local storage; 4 fiber attach to SAN storage

Solaris 10


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Disk StorageThe PROS application needs access to a Direct AttachStorage.SAN Storage

The storage estimates below are based on businessparameter.


Vendor Model

HP StorageWorks xp128 with 200 GB of usable disk space (Prod & Test), 6 HBAs for Option 1 OR 8HBAs for Option 2, 4ACP, RAID-0+1, 73GB 15K RPM disks, and 16 GB of data cache.


Vendor Model

SUN SE9970, 1600 GB of usable disk space (Production and Test), 12 HBAs for Option 1 or 14 HBAs forOption 2 configuration, 4 ACPs or greater, RAID 0+1, 73 GB 15K RPM disk drives, and 16 GB ofdata cache. The SAN configuration and layout should be able to support a throughput of 22K IOPS.


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Third Party SoftwareThe software specified below must be procured andinstalled by the client

Application Server Software

Vendor Software Operating System

HP Java Development Kit Version 1.4.2 or greater HPUX 11i

Oracle Oracle Client 9.2.0.7 or greater (Optional) HPUX 11i

HP GlancePlus HPUX 11i

Database Server Software


Oracle Oracle 9.2.0.7 (64-bit) or greater Enterprise Edition HPUX 11i

HP GlancePlus HPUX 11i

Client Desktop Software


Microsoft Internet Explorer 6.x Windows 2000,Windows XP


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Embedded SoftwareThe software specified below is embedded within thePROS application. Client will be billed for the specifiedcosts. PROS will provide support for the embeddedproducts.

Application Server Embedded Software


The ApacheSoftwareFoundation

Tomcat HPUX 11i

Borland VisiBroker: $2500 license fee per production CPU and 20% annualmaintenance. Cap 10 CPUs per server. (Application servers only)

HPUX 11i


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PROS Group Revenue ManagementQuestions

13 February 2007

GRMS Meeting Mod

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