ITAA's Year 2000 Outlook February 27, 1998 Volume 3, No. 8 Published by the Information Technology Association of America, Arlington, VA Bob Cohen, Editor bcohen@itaa.org ITAA's Year 2000 Outlook is sponsored in part by BDM International, Inc., CACI International Inc., DMR Consulting Group Inc., IBS Conversions, Inc., Softworks, Inc. and Y2Kplus, Inc. Greenspan Says Y2K Will Bug Economy Federal Reserve Chairman Alan Greenspan told a Congressional panel this week that Y2K situation will hurt the U.S. economy in advance of the Year 2000, diverting resources to "non-productive endeavors." Appearing before the Senate Banking Committee last Wednesday, Greenspan said the Fed cannot realistically evaluate the economic impact of Y2K related breakdowns. "We do not know the size. We do not know the contagion and interaction within the system. And we do not know how rapidly we can resolve the problem." Greenspan said the issue has two parts: how to prevent the problem from occurring and how to respond when it happens. Greenspan offered the Committee an example of the stakes involved. "Öwe had a very major bank in the city of New York a number of years ago whose computer went out. And the New York Federal Reserve Bank had to lend them over $20 billion overnight. Now, if we werenít there, I can tell you that the system would have been in very serious difficulty," Greenspan said. The Federal Reserve Chairman said that countries overseas may be facing smaller Y2K problems because they are buying new equipment. Asked about the possibility of European policymakers postponing the euro conversion in light of the Y2K resource drain, Gr eenspan said, "I think theyíre now at a point where theyíve got a very major dilemma of exactly this nature." He said [European] operations are gradually moving to encompass system changes. "I suspect that if those were delayed, there would be some very major consequences within the payment system and within the way the European monetary system is evolvingÖI do know that we at the Federal Reserve are aware of the fact that because of the tremendous amount of resources moving towards a single-currency im plementation, that other resources to confront the computer issues are lacking." Greenspanís Y2K comments came in response to questions from Sen. Robert Bennett (R-UT). Horn to Offer New Federal Government Report Card Rep. Stephen Horn, R-CA, Chairman of the House Subcommittee on Government Management, Information and Technology, will release a new report card on federal agency Y2K preparedness at a press conference Wednesday, March 4. Hornís grading system reflects t he progress of agencies in moving towards Y2K compliance. FCC To Hear Industry Concerns The Federal Communications Commission will meet with an industry delegation next week to assess concerns about the Y2K readiness of the nationís telecom infrastructure. FCC Office of Plans and Policy Director Mike Nelson has requested the meeting, which will be attended by trade association representatives. Attorney Brian Moir, Moir and Hardman, is arranging the meeting. Moir says participants will describe how they see the carriers responding to the Y2K situation. National Retail Federation Vice Pres ident Cathy Hotka said she has polled her members seeking input for the meeting and her phone has been ringing ever since. "Itís safe to say that response to the meeting is heavy," Hotka says, adding, "there is a huge amount of interest." Wishing that t he meeting had been conducted in 1996, Hotka said it will still be useful. European Commission Defines Y2K Role; OECD Rolls on to Other Matters The European Commission (EC) released a paper this week specifying how its sees its part in the Year 2000 scramble, while the Organization for Economic Cooperation and Development (OECD), a major multinational policy organization, considered the issue-and considered it best left to others. The EC envisions a secondary role for itself in the century rollover. According to its recent report, "The responsibility for tackling the Year 2000 problem and minimising risks clearly lies with suppliers and users of computer-based systems and market f orces will play the major role. Nevertheless the size of the problem and its wide-ranging impact justify awareness and support initiatives by governments and associations in all Member States." In addition to maintaining a relevant web site (http://www.ispo.cec.be/y2keuro), the Commission pledges to discuss Y2K with contacts in government and industry, monitor Member State progress and awareness, exchange information "suitable for cross-border e xploitation," address issues concerning cross-border infrastructures, benchmark best practices and report regularly to the European Council. EC discussion will seek to accentuate Member State synergies and eliminate redundancies. Cross-border testing is mentioned as an area of particular concern. Y2K impacts on infrastructure sectors, consumers and SMEs, and the functioning of the internal market also appear to have the Commission's immediate attention. Looking to the future, "The Commission will exam ine, in the context of its policies such as those on industry, SMEs, consumers, and training, whether a further contribution could be made towards helping raise awareness and addressing the problem." The OECD, meanwhile, continues to fiddle while time to the Year 2000 burns. The OECD Working Party on the Information Economy discussed Y2K as an issue for future action at a recent meeting and gave it low priority. John Dryden, head of the OECD's Info rmation, Computer and Communications Policy (ICCP) Division, said the meeting produced a "large degree of incomprehension" as to why his organization should address the issue. He indicated that many among the working party believe that the private sector has Y2K well in hand, leaving a limited role for governments. Dryden said he has personally resisted attempts to squash the Millennium bug issue before it got on the group's agenda. But struggling with budget cuts, Dryden said the OECD would need a private sector grant to develop any sort of Year 2000 program. He estimated that $50,000 would enable the group to get such a program up and running, focused in the area of information sharing and best practices. Y2K is expected to be on the ICCP division agenda at a March 26-27 meeting. While UK Prime Minister Tony Blair has signaled his government's interest in making Y2K a high priority during his presidency of the European Union, caution appears to be more the watchword among European governments. Why the reluctance to be part of the process? One observer said that past government involvement in the high tech policy arena has been a case study in how not to do things. He said government officials see the Year 2000 issue as private sector driven from start to finish. Symantec Draws Y2K Lawsuit Objecting to a $49.95 software upgrade, a software customer has filed suit against Symantec Corp. Plaintiff Richard Capellan charges the company with failing to provide a free Y2K upgrade to an AntiVirus program. The lawsuit seeks certification as a cla ss action against Symantec. In his suit, brought by Milberg Weiss Bershad Hynes & Lerach, Capellan claims that the company violated an implied warranty by charging for a Y2K compliant upgrade. Capellan also accuses Symantec of fraud by making "false and misleading representations" in marketing statements about its product. While Symantec says that the upgrade includes many new features in addition to the Year 2000 fix, Capellan wants the company to surrender any money produced by selling the upgrade an d provide a Y2K patch at no charge. University System of Maryland Sets Y2K Fellowships The University System of Maryland will unveil a fellowship program next week it hopes will make a dent in the stateís need for Y2K workers while helping students meet the costs of a higher education. The Year 2000 Fellowship Program will offer students t he opportunity to receive technical training, gain workforce experience, earn college credits and bank free tuition benefits. University System of Maryland Chancellor Donald Langenberg will introduce the program to Maryland businesses in a pair of semina rs, March 4 and 5, in College Park and Baltimore. Participating companies will fund the program, paying $12 per hour to the newly trained student workers and contributing $8 per hour to the Year 2000 Fellowship Fund. Students working 40 hours per week for two years would, in addition to their salary, re ceive four years of free tuition. Those working 40 hours per week for one year would receive two years of free tuition. Part-time students could work 20 hours a week for two years and receive two years of free tuition. The Y2K courseware, designed by Caliber Learning Network, will focus on programming basics, COBOL programming, an introduction to JCL and CICS, Y2K tools, and Y2K testing methods. Applicants must be enrolled in the University of Maryland System and pass an aptitude test to participate. Students can be full-time or part-time, graduate or under graduate. There are no age requirements. Training takes place in five weeks. Students will receive college credit for the training classes. Jim Hall, Executive Director of the University System Downtown Baltimore Center, says pilot programs will begin March 9 and 23 with 30 students. These students have already been placed in job assignments. Hall says the program is an example of using mar ket forces instead of grants to address a difficult issue. Those market forces, expressed in terms of how much employer interest the program receives, will determine how many students are ultimately admitted into the program. But Hall sounds more concerned about finding the seats than having students to fill them. One major systems integrator, he notes, has already agreed to hire 100 workers. Noting that demand exceeds the supply of Y2K remediators, Hall says the program is designed to meet the near term need for Y2K technicians. "We are not developing surgeons," Hall says, "weíre developing paramedics." He calls the program "a GI bill which does not include getting shot at." Closer to Home SCB Computer Technology, Inc. (NASDAQ: NM\SCBI), headquartered in Memphis, Tennessee, has received ITAA*2000 certification. ITAA*2000 is the industryís century date change certification program. The program examines processes and methods used by compan ies to perform their Year 2000 software conversions. SCB Computer Technology, Inc. participated in a rigorous evaluation of its approach to date conversion, with extensive analysis in eleven discrete process areas deemed necessary to a successful Year 20 00 conversion. Certification indicates that SCB Computer Technology, Inc. has the core capabilities needed to address the Year 2000 challenge. The company developed the Provision 2000sm for Intel Windows 95, SCO Unix (version 2.1) using certified proces ses and methods. Business To Business Computer Horizons Corp., Mountain Lakes, NJ, has been awarded a Y2K conversion contract by a leading Canadian telecommunications company. IBS Conversion, Inc., Chicago, IL, has announced the availability of IBS/Solution 2000 version 2.4, an integrated Y2K tools package that loads, identifies, scans and converts source code. SCB Computer Technology, Inc., Memphis, TN, has signed a Y2K partnership agreement with the Space and Aviation Control Business of Honeywell Inc. SCB has also been awarded a Y2K consulting contract by the Arkansas Employment Security Department. Digital Equipment Corporation, Maynard, MA, has introduced two new Y2K software products, StorageWorks for Year 2000 and the Year 2000 System Healthcheck and Support Service. Mercury Interactive Corporation, Sunnyvale, CA, has entered into a Y2K partnership agreement with Next Millennium, Inc. NeoMedia Technologies, Inc., Fort Myers, FL, has won a Y2K conversion contract with Hospices Cantonaux, a group of health care facilities based in Lausanne, Switzerland. Viasoft Inc., Phoenix, AZ, has announced the availability of OnMark 2000, a new end-to-end suite of Y2K conversion products for PC desktops and client/server applications. CommUnique Corporation, Holmdel, NJ, has announced the completion of a Y2K assessment contract for a leading pharmaceutical company. Compuware Corporation, Farmington Hills, MI, has announced the opening of two new professional services offices, located in Atlanta and Indianapolis, offering Y2K compliance services. Pinnacle Decision Systems, Inc., New Haven, CT, has announced the availability of PinPoint version 1.7, a Windows-based tool that analyzes Focus source code. Sponsor Advertising BDM International, Inc. Are you confident that your renovated software applications are millennium-ready? Have you also validated the associated hardware, firmware, interfaces, third party software, and non-information systems that keep your business running? If not, BDM can help you mitigate business risks across your enterprise with our BDM SMART ValidatorSM solution. SMART Validator helps you to objectively validate that each and every automated system affected by Year 2000 performs as intended. SMARTValidator provides customers with detailed processes, checklists, compliance statements, and guidelines to validate an d maintain compliance beyond Year 2000. With 37 years of large-scale project management and testing experience backing our solutions, you can count on BDM and SMART Validator to help you prove Year 2000 compliance across your organization. (800) 794-6085 e-mail: year2000@bdm.com http://www.bdm.com. CACI International Inc. -- Restore 2000 CACI leverages 35 years of information technology experience and over 10 years of reengineering systems - solving the same problems Y2K poses - to offer a total solution to the Year 2000 challenge: Restore 2000SM. The Restore 2000 methodology applies a comprehensive three-phase process to your information systems: Assess, Plan, and Remediate. Furthermore, we give you the option of buying our methodology or our services - both backed by CACI experience and Y2K expe rts. Restore 2000 is certified by the ITAA as meeting the highest standards of Y2K compliance. In addition, software development processes at CACI have been independently certified as being at Level 3 of the Software Engineering Institute (SEI) Capability Mat urity Model. Achieving SEI Level 3 provides clients further assurance that CACI solutions successfully and effectively deliver Year 2000 compliance while allowing you to save money, reduce risk, and minimize systems disruption. With approximately 3700 employees worldwide and FY97 revenues in excess of $270 million, CACI provides a depth of experience and expertise you can rely on. We've performed Year 2000 conversions for many of America's biggest enterprises, including major he alth insurance providers, retail clothing manufactures, gas companies, airlines, and government agencies. Superior functionality backed by decades of experience - CACI's Restore 2000. DMR Consulting Group Inc. DMR Consulting Group Inc.(formerly DMR TRECOM), an Amdahl company, is a global consulting organization of over 7,000 employees providing a comprehensive range of information technology services. Our Year 2000 Practice comprises a comprehensive offering of consulting, assessment, remediation, testing, and implementation services utilizing a formal methodology (APM/2000), best-in-class software tools, and six global conversion centers. We have mul ti-disciplinary experience in most mainframe, mid-range, and client-server/desktop environments. APM/2000 includes: … Program Management … Enterprise-Wide Assessment … Impact Analysis … Conversion Delivery … Testing and Implementation Year 2000 Risk Management Consulting Services include: Program Review, Stakeholder Readiness Assessment, Risk Management and Vendor Compliance Research. Contact: Stephen Frycki Managing Director, Year 2000 Services - US Phone: 201-200-3923 Fax: 201-200-9046 Email: fryckis@dmr.com Websites: http://www.dmr.com IBS Conversions, Inc. IBS Conversions, Inc., founded in 1982, is the first service organization to receive ITAA*2000 Certification for IBS/Solution 2000TM methodology, products and services. IBS is a recognized leader in automated conversion/migration software and consulting having translated millions of lines of code for companies worldwide. IBS/Solution 2000 IBS/Solution 2000TM is a full suite of Year 2000 services and products: Full project Analysis, Pilot Project and Repair, staffing and management/methodology Scan/Repair Conversion Factories for Mainframe and AS/400 environments Project Methodology Qwik-Sizer Analysis Licensing Scan/Repair Tools for AS/400 Y2K Projects License Conversion Factories/Tools to other Consulting Firms http://www.ibs2000.com SOFTWORKS, Inc. HOT DATE 2000/SIMULATE Preparing for the new millennium isn't easy, especially in the data center. Ensuring an accurate conversion could be a daunting task. That's why SOFTWORKS has created HotDate 2000/SIMULATE. HotDate 2000/SIMULATE is a comprehensive identification, testing, and simulation utility created to locate the programming changes needed to prepare for the Year 2000. Using a simulated Year 2000 environment, HotDate 2000/SIMULATE locates and tests poten tial date problems the Year 2000 will cause to your individual programs, applications, and entire system. HotDate 2000/SIMULATE is transparent to your applications and supports all programming languages. For more information about HotDate 2000/SIMULATE, call SOFTWORKS at 800-727-4422. Http://www.softworkscc.com Y2Kplus, Inc. Y2Kplus provides a portfolio of "best of class" software products and outsourcing services that address Year 2000 issues. These offerings are available both to IT Solution Providers and IT organizations. Y2Kplus has offerings that address the following needs: * A comprehensive Renovation Preparation offering to enable you to prepare complete and accurate packages of software components ready for mainframe code renovation. * A powerful Code Renovation set of offerings that will renovate: * multiple languages including COBOL, Assembler, Pl/1 and Natural code for mainframe systems; * mid range COBOL systems running on DEC, HP, DG, NCR, Unisys, Wang, Prime, Bull, Tandem, and IBM AS/400 platforms. * A Re-engineering tool for mid range COBOL systems that will enable you to rehost to other platforms, thereby providing "value beyond year 2000". * Code Renovation outsourcing services for all of the above systems plus IBM AS/400 RPG. * Data Commander, a testing tool that enables you to warp test data dates to allow you to do future date testing by updating your current test data stream and then compare results of test runs before and after 2000. * Services for development and management of Comprehensive test plans and strategies to help your organization create effective baseline tests, improving the quality of risk mitigation derived from forward date testing. For more information, please send email to info@y2kplus.com, visit our web site at www.y2kplus.com or call Dave Ehlke at 781-863-8111. Calendar March 4, '98 ITAA Y2K Task Group Meeting Arlington, VA Info: 703-284-5312 http://www.itaa.org/year2000.htm March 9-11, '98 DCI - Managing Y2K Projects: Washington, DC Info: 508-470-3870 The Key Issues External & Internal http://www.dciexpo.com March 10-12, '98 DCI - Testing For Y2K Compliance Washington, DC Info: 508-470-3870 http://www.dciexpo.com March 17, '98 Washington DC Y2K Group Meeting Washington, DC http://www.bfwa.com/bwebster/y2k March 18-20, '98 SPG Year 2000 Conference & Expo New York, NY Info: 508-652-1010 http://www.spgnet.com March 23-24, '98 IBC's Y2K Legal Compliance Conference New York, NY Info: 508-481-6400 http://www.ibcusa.com/conf/2000legal March 23-24, '98 An Action Plan For Year 2000 Boston, MA Info: 781-235-2895 Compliance - Seminar http://www.masp.com April 1, '98 ITAA Y2K Task Group Meeting Arlington, VA Info: 703-284-5312 http://www.itaa.org/year2000.htm April 6-9, '98 Year 2000 National Symposium Atlanta, GA Info: 508-393-3266 BrainStorm Group, Inc. http://www.brainstorm-group.com April 14-15, '98 An Action Plan For Year 2000 New York, NY Info: 781-235-2895 Compliance - Seminar http://www.masp.com April 20-22, '98 SPG Year 2000 Conference & Expo Orlando, FL Info: 508-652-1010 http://www.spgnet.com April 21, '98 Washington DC Y2K Group Meeting Washington, DC http://www.bfwa.com/bwebster/y2k April 27-28, '98 Year 2000 Millennium Bug New York, NY Info: 800-931-6722 Investment Conference April 27, '98 Y2K Liability Conference London, England Info: 44-171-878-6888 http://www.mondaq.com April 29-30, '98 Y2K Info Net Technology Conference Toronto, Info: 905-454-8577 Canada May 6, '98 ITAA Y2K Task Group Meeting Arlington, VA Info: 703-284-5312 http://www.itaa.org/year2000.htm May 18-20, '98 IBM Y2K Technical Conference Las Vegas, NE Info: 800-426-8322 http://www.training.ibm.com/ibmedu/conf/yr2000/ May 18-20, '98 IQPC's Year 2000 Industrial & Houston, TX Info: 617-482-3258 Process Control Systems Conference May 18-19, '98 An Action Plan For Year 2000 Boston, MA Info: 781-235-2895 Compliance - Seminar http://www.masp.com June 1-2, '98 An Action Plan For Year 2000 Chicago, IL Info: 781-235-2895 Compliance - Seminar http://www.masp.com June 3, '98 ITAA Y2K Task Group Meeting Arlington, VA Info: 703-284-5312 http://www.itaa.org/year2000.htm June 22-25, '98 Year 2000 National Symposium Chicago, IL Info: 508-393-3266 BrainStorm Group, Inc. http://www.brainstorm-group.com June 22-23, '98 An Action Plan For Year 2000 San Francisco, CA Info: 781-235-2895 Compliance - Seminar http://www.masp.com June 29-July 1, '98 SPG Year 2000 Conference & Expo Chicago, IL Info: 508-652-1010 http://www.spgnet.com July 1, '98 ITAA Y2K Task Group Meeting Arlington, VA Info: 703-284-5312 http://www.itaa.org/year2000.htm August 5, '98 ITAA Y2K Task Group Meeting Arlington, VA Info: 703-284-5312 http://www.itaa.org/year2000.htm August 10-13, '98 Year 2000 National Symposium San Francisco, CA Info: 508-393-3266 BrainStorm Group, Inc. http://www.brainstorm-group.com September 2, '98 ITAA Y2K Task Group Meeting Arlington, VA Info: 703-284-5312 http://www.itaa.org/year2000.htm September 23-25, '98 SPG Year 2000 Conference & Expo San Francisco, CA Info: 508-652-1010 http://www.spgnet.com October 7, '98 ITAA Y2K Task Group Meeting Arlington, VA Info: 703-284-5312 http://www.itaa.org/year2000.htm November 4, '98 ITAA Y2K Task Group Meeting Arlington, VA Info: 703-284-5312 http://www.itaa.org/year2000.htm November 9-11, '98 SPG Year 2000 Conference & Expo Boston, MA Info: 508-652-1010 http://www.spgnet.com December 2, '98 ITAA Y2K Task Group Meeting Arlington, VA Info: 703-284-5312 http://www.itaa.org/year2000.htm ITAA's Year 2000 Outlook is published every Friday to help all organizations deal more effectively with the Year 2000 software conversion. If you would like to receive this free publication, please sign up on the web at https://www.itaa.org/transact/2koutlooksub.htm. Copyright ITAA 1998. All rights reserved. The Information Technology Association of America, 1616 N. Fort Myer Drive, Suite 1300, Arlington, VA 22209. Internet: http:\\www.itaa.org