ITAA's Year 2000 Outlook November 6, 1998 Volume 3, No. 41 Published by the Information Technology Association of America, Arlington, VA Bob Cohen, Editor bcohen@itaa.org Read in over 80 countries around the world ITAA's Year 2000 Outlook is published every Friday to help all organizations deal more effectively with the Year 2000 software conversion. To create a subscription to this free publication, please visit ITAA on the web at https://www.itaa.org/transact/2koutlooksub.htm. To cancel an existing subscription, visit https://www.itaa.org/transact/2kremove.htm. ITAA's Year 2000 Outlook is sponsored in part by CACI International Inc., DMR Consulting Group Inc., and Y2Kplus Gartner Report: Y2K Too Shall Pass The GartnerGroup is gunning for Mad Max. Or at least the world-gone-mad mentality this movie brings to mind. Clearly distressed by Y2K "gloom and doom" sayers and the extreme measures some advocate in response, the company is now trying to pour oil on troubled millennial waters. Or as one of its leading consultants says, "pour oil on the hysteria." And perhaps rid the world of a little snakeoil in the process? The GartnerGroup is known more for its consulting work with private clients than missionary work with average citizens. But the company recently released a public report intended to help just plain folks cope with the stress of a digitally dysfunctional world. The report is certainly designed to help cooler heads prevail. While survivalists may urge mountain retreats or mounds of freeze dried edibles, the Gartner Group seemingly predicts that the Year 2000 rollover will be a few days spent with relatively minor techno troubles. Troubles more of "gol dang it" than Gotterdammerung variety. And certainly not modern society's one-way ticket ride to Cyberia. At least that's certainly the way one of the report's authors sees it. "We don't need a run on the banks due to hysteria and panic," says GartnerGroup Vice President and Director of Research Jim Cassell. The analyst says his firm is working with the American Banking Association to head off such a possibility. He says the ABA is very concerned about people needlessly withdrawing large sums in the run up to the rollover. The collective cashing of one month's paycheck, Cassell says, would empty the national till. "There is not enough physical money," he says. "Withdrawing funds from banks or liquidating investments is not warranted" GartnerGroup assumes most enterprises will address mission-critical systems so that 90 percent of the systems that do fail will be corrected within three days," the new report notes. Seventy percent will be back in two days, it predicts. Cassell compares the situation to a hurricane. Pay attention, be prepared, but do not be blown away by fear and doubt. A stampede to the boonies isn't on Gartner's to-do list either. Citing the "incredible hysteria" he hears, Cassell encourages people to look at the situation in perspective and separate panic from practicality. Cassell says he lives in Florida, where the "worst day is 60 degrees. I'm not worried about buying a space heater," he says. So what is a person to do to prepare for a few days of technologically stormy weather? Cassell suggests that like his Florida example, physical location will go a long way to determining what steps are necessary. Some moves, however, seem universal. Cassell says having the equivalent of two-weeks salary on hand is not a bad idea. And a five-day contingency supply of medications, fuel and food are good too. "Individuals should prepare for limited duration, localized failures of services and infrastructure rather than an apocalypse," the report states, but warns, "The type and number of failures will vary geographically and cannot really be predicted." On the GartnerGroup's Personal Year 2000 Risk Assessment checklist are insurance policy reviews, prescription refills, physical and dental checkups, first-aid supplies, cellular phone backups, topped off gasoline and home heating oil tanks, early driver's license renewals, and stocked water. "The most critical factors for most people are clearly the availability of telephone service and electric power," the report notes, citing the vulnerability of automated teller machines, emergency services, credit cards, electronic funds transfer and the like. Gartner's optimistic view is not necessarily global. "In many cases there is no effective way for a non-U.S. person to meaningfully assess the risk posed by such things as infrastructure and financial services," the report observes. "Few countries have as rigorous reporting requirements as the U.S. Securities and Exchange Commission (SEC), and individuals have no leverage on enterprises such as insurance and utility companies. Such enterprises generally do not provide specific responses to individuals. " Listen to whatever public pronouncements are available, then take a conservative position, the report suggests. Back in the U.S., Cassell says institutions like the SEC and the Federal Deposit Insurance Corporation will help people weather the storm. But it won't be the kind of storm that floods cities or blows down buildings. "You may not get [some] products or services for five days. It will be inconvenient, disruptive, but it's not the end of the world," he notes. At least not for individuals. Companies, according to Cassell, could be a different story. Some of these, he says, will be "devastated" by lawsuits and other problems. Of course the economic consequences of such impacts could mean more than a blinking VCR to many American households. But even a lost job or depressed stock price isn't the end of times. So put away the sackcloth and hair shirts for now. Instead, prepare for the purely practical. Like checking that investment companies are providing adequate status information. That insurance policies cover date related physical damage. That health co ncerns are tended to ahead of time. And that neighbors are covered too. "People should not ask 'How can I survive the century boundary?' They should ask 'How can my neighborhood and I survive the century boundary?' People should volunteer to help the elderly or sick, and should also volunteer their services to their local, city or town governments," the report advises. The free report is available at www.gartnerweb.com. Jurisdictions Collaborate in Battle of the Bug Maybe you had to be here. This week a distraught man jumped from the Capital Beltway's Woodrow Wilson Bridge-one of the busiest thoroughfares in the United States. Before he was pulled from the water with minor injuries, Ivin L. Pointer managed to creat e a colossal five-hour, 20-mile traffic jam that had even gridlock-hardened Washington commuters upset. The Wilson Bridge links Maryland and Virginia, crossing over the Potomac River at a stretch under the jurisdiction of the District of Columbia. In bringing the beltway to a screeching halt, Pointer pointed up the very real inter-relationships between loc alities and the vulnerabilities of their interlocking systems. The bridge of course is just one system. Jurisdictions may need to coordinate in numerous ways, from health services to communications to fire and rescue to power and water and more. Does this story of interconnected systems begin to sound familiar? Meet Don Evans. He chairs the Metropolitan Washington Council of Governments (COG) IT Committee (COG is a regional government policy coordinating body). To Evans, the "guy on the bridge" is a vivid reminder that it only takes one bad microchip to stop a production line. Or even a metro area? "If humans were microchips," Evans said, "we'd see similar failures all the time." Evans and his multi-jurisdictional committee have taken up Y2K as cross-border concern, and they have begun a series of monthly meetings to share information and figure out how and where the bug might bite commonly shared public services. The COG official says local governments know how to cope with single point failures. But this isn't that. "The Year 2000 raises the possibility of multiple concurrent failure events," he says. So his committee also meets on Y2K issues with COG committe es on public safety, transportation and health as well as with area businesses. The goal is to figure out what systems may fail, how they will impact the Washington metropolitan area, the actions that must be taken in response, and how to set service res toration priorities. "We're making geographic specific assessments in order to target our emergency management for the most likely probabilities," Evans says. The city of Los Angeles doesn't need a jumper to be reminded that bad things can and do happen to nice infrastructure systems. The federal government has declared LA a disaster area ten times since 1992. City officials know something about responding to emergencies. Even so, the LA's Emergency Preparedness Division hired three contingency planners this week to deal with Y2K issues. Part of their mission will be educating the public on how to be prepared. According to Assistant Division Head Bob Canfield, the curren t situation is something like what the state faced with the El Nino weather pattern. Canfield says the public received so much information ahead of time, the whole subject became something of a joke. "Then the rains began," Canfield said. The El Nino may have washed away much of the humor but the well-informed city was relatively well prepared to deal with the soggy situation. Canfield is concerned that the disaster-prone nature of Los Angeles may work against it when Y2K rolls around. " We've had water or electrical systems knocked out for two or three days," he says. "We've never had them out for a week or two. I'm worried that people have been through so many disasters…the experience may cause them to be more sure [about systems] tha n they have a right to be." Will Y2K really rock Los Angeles? Southern California has one deadly earthquake every ten to 15 years. In 1980 the city created a unified crisis command structure to respond to such emergencies, with on-going emergency planning and pre-assigned responsi bility for managing debris clearance, shelter, volunteers, building inspections and like tasks. Now this group, the Emergency Operations Organization, has turned its attention to the Year 2000. "In the last six months, we've been pushing hard to turn Y2K from a technical issue to an emergency planning and emergency management issue," Canfield said. The city, county and surrounding jurisdictions recently completed a joint multi-day workshop on c ritical infrastructure protection, with substantial time spent on Year 2000 issues. Right now, there may be more issues than answers. Especially for a city that controls the airport, harbor, and municipal water and power utility, plus 40 departments of government. In response to the century rollover, Los Angeles must look at its existi ng emergency plans and traditional assumptions through a Y2K filter. One such assumption is that system redundancy will help the city communicate. To that end, LA operates its own satellite and land-based systems. Canfield questions whether embedded ch ip failures will throw a wrench into these backup plans. Of course not all jurisdictions are taking the issue so seriously. Y2K activist Steven Davis, a budget manager in Montgomery County, Maryland, who participates in the COG Y2K initiative, says regional responses around the country range from a full court press to precious little or nothing at all. Davis advocates a holistic approach with local government coordination on budget and finance, procurement, insurance, public safety, public transit, public information and public works. Unfortunately, in many communities, local government has failed to play this role. Community preparedness falls to individuals acting independently of local officials. While Davis says some of these people come equipped with survivalist views or new age philosophies, most are just concerned citizens. Ian Wells, a software engineer in Lowell, MA, is trying to engage officials in his home town but says it's an uphill battle. Wells says they have other priorities and little awareness of the larger community issue. Although he is working with a small gr oup of similarly concerned citizens in Lowell, Wells is worried that as awareness of the issue grows, personal preparations will swamp further consideration of community preparedness. Time will tell. Fed Says Institutions are Tapping into Tests The Federal Reserve says 3000 U.S. depository institutions have conducted Y2K tests using the Fed's financial services applications. Available since last July, the Shared Test Days program allows depository institutions to test their use of the Federal Reserve's applications as well as electronic connections to the Fed in a future date simulated environment. Applications include funds transfer, the automated clearing house (FedACH), book entry securities, Treasury-auction automated processing, trading-r oom auction processing, the FedLine Open Market system, the Treasury Tax and Loan system, central bank accounting, the Accounting Balance Monitoring system, selected check and check adjustments applications, and the Electronic Tax application. Program details are available at www.frbsf.org/fiservices/cdc/. Business to Business Computer Technology Associates Inc., Bethesda, MD, has been awarded a Y2K contract by the Port Authority of New York and New Jersey. Syntel, Inc., Troy, MI, has been ranked number two on Forbes magazine's "The 200 Best Small Companies in America" list. Landmark Graphics Corporation, a wholly owned business unit of Halliburton Company, Houston, TX, has announced the availability of Release 98Plus, a Y2K-ready version of their UNIX and Windows applications for exploration, drilling, and production. 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