ITAA's Year 2000 Outlook May 1, 1998 Volume 3, No. 17 Published by the Information Technology Association of America, Arlington, VA Bob Cohen, Editor bcohen@itaa.org Read in over 60 countries around the world 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. Koskinen Walks Wire at Industry Breakfast Speaking at an industry breakfast this week, the federal government’s "Y2K Czar," John Koskinen, said the international dimensions of the Year 2000 could become a foreign policy issue for the United States. Koskinen said surveys indicate that 70 percent of countries have not done anything in response to the situation. Y2K-triggered outages, he suggested, could not only affect U.S. citizens, businesses and embassies abroad, it could also impact the political stability of nations. He said Secretary of Sta te Madeleine Albright will shortly be issuing a cable designating U.S. ambassadors overseas as Y2K point persons in their respective countries. Koskinen offered his candid remarks in an address which stressed the need to "walk the high wire" on the issue, balancing between "energizing" the public and causing panic. The recently appointed Czar said he has met with 42 agency heads, CIOs or other e xecutives in an "agency of the day" series of assessment meetings. Koskinen said the Presidential Council he heads, composed of 35 agency deputy secretaries and CIOs, has begun to subdivide into a series of smaller work groups, focused on issues like ene rgy, telecom, workforce, and emergency preparedness. The goal, he indicated, is not to assume responsibility for corrections in these areas but provide leadership, focus, awareness, and problem solving. While lead agency responsibility in certain areas will be obvious, Koskinen said areas like energy and telecommunications are not as straightforward. The electric power grid in the U.S., for instance, is not a single entity but a series of interlocking g rids with no one in charge, he said, adding that a "hodge podge" of federal agencies have jurisdiction for various facets of this infrastructure. Koskinen identified four phases the Y2K Council will move through: organizing the government’s response, monitoring performance, contingency planning and crisis management. On the last point, he said the National Security Council has offered the Council the use of its communications network in the last months of 1999. His remarks spent significant time on the tenor of the current Y2K debate. Koskinen said the "background noise" surrounding the issue is becoming increasingly "apocalyptic," some of which, he said is hard to dismiss out of hand. Noting that worldwide di saster would result were all work on Y2K to stop immediately, Koskinen encouraged companies to advise the public on the status of their systems, to combat rumors of the week and to become inoculated against systems that will not work. Koskinen said he is pressing federal agencies, including the Antitrust Division of the Justice Department, to allow greater candor. He said the Council is trying to determine how the federal government might act as a buffer in the communication of Y2K status information. Such a move, he suggested, would facilitate collaboration and help bootstrap the Y2K conversion efforts of later starters. On the Y2K budget front, Koskinen said that because Y2K is the highest IT priority for federal agencies, they should take money away from other programs to pay for it. He admitted that with the Department of Defense, not having a Y2K "line item" may detr act from the perceived importance of the program. He said the Office of Management and Budget (OBM) is considering creation of $25 million pool of funds to help smaller agencies lacking budget resources to reprogram funds. In terms of federal contracti ng and procurement reform, Koskinen said that agencies may not realize the high degree of flexibility they already have to award Y2K contracts. He said that the next Y2K Council meeting will take up the question of limiting regulatory changes which may take a toll on Y2K conversion efforts within the agencies. Senate Y2K Committee Announces Members The Senate Leadership announced the make up of the Senate Special Committee on Year 2000 Technology Problem this week. Sen. Bob Bennett (R-UT) will chair the committee. Sen. Chris Dodd (D-CN) is the ranking member. Also appointed are Sen. Jon Kyl (R-AZ ), Sen. Susan Collins (R-ME), Sen. Patrick Moynihan (D-NY), Sen. Jeff Bingaman (D-NM), and Sen. Gordon Smith (R-OR). Ex Officio members are Sen. Ted Stevens (R-AK) and Sen. Robert Byrd (D-WV). The committee will provide "oversight and legislative recomm endations to help the government and private sector react quicker and more effectively to the economic difficulties arising from the Year 2000 system failures," according to a statement issued by Bennett’s office. Priority areas for the committee include : utilities, telecommunications, transportation, financial services, general government services, general business services and litigation. On a related note, Senator Bennett introduced S. 2000 this week, a bill to ensure that businesses, financial mark ets Swiss See Down Hill Sledding A survey by the Institute of Information Systems of the University of Bern appears to find a few holes in the Swiss approach to the Year 2000 conversion. Based on work conducted in December 1997, the survey finds that only 25 percent of companies polled believe their Y2K efforts will be "high or very high." Although 25 percent have already experienced problems, more than 35 percent of firms plan to get started on their conversion work this year or later. When they do get going, companies may face an up hill road. Only about 20 percent of organizations have complete documentation on their applications. Perhaps taking a "less is more" approach to the situation, only half of those polled have established a Y2K project manager and 70 percent of this group have created the job on a part-time basis. More than 70 percent of firms have not called in external auditors, lawyers or insurance companies. Fifty percent of firms have failed to include internal auditors or to consider their facilities management or co Austrialian Bankers Pose Tax Break The Australian Bankers Association has proposed that Y2K repairs for business be made tax deductible. The Australian Taxation Office promises a white paper on the Y2K issue, and Tax Commissioner Michael Carmody says the government will weigh in on the ta x incentive issue by June 30. OECD Offers Ministerial View The Organization for Economic Cooperation and Development (OECD), a major multinational organization, has recognized the Y2K problem as a concern for its members. According to a communique from the Ministerial meeting held this week: "As the year 2000 ap proaches, Ministers agreed on the importance of rapidly adapting computer systems in order to avoid the potential for significant disruption due to the so-called "millennium bug". They stated their intention to meet this challenge and recognised the need to exchange information among governments and to work with the private sector, as appropriate, to ensure that the problem is resolved in a timely and comprehensive manner. They also called on the OECD to promote global awareness of the Year 2000 problem and its potential economic impact, and to report to the Ottawa ministerial Conference on electronic commerce." Dr. Ed Offers Data Ed Yardeni has launched a free searchable database of Y2K disclosure statements. The statements come from annual and quarterly reports filed in 1998. The database is accessible at http://www.yardeni.com/cyber.html#Y1.19. Closer to Home BFL Software Limited of Bangalore, India received ITAA*2000 certification. ITAA*2000 is the industry’s century date change certification program. The program examines processes and methods used by companies to perform their Year 2000 software conversion s. BFL Software Limited 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 2000 conversion. Certification indicates that BFL Software L imited has the core capabilities needed to address the Year 2000 challenge. Business to Business CTA, Incorporated, Rockville, MD, has won a Y2K contract with Los Angeles World Airports, City of Los Angeles, CA. McCabe & Associates, Columbia, MD, has partnered with PRT Group, Inc. to provide Y2K and eurocurrency testing services for a leading north east insurance company. Complete Business Solutions, Inc., Farmington Hills, MI, has entered into a strategic partnership agreement with Guaranty National Insurance Company. The company has also selected two executives to head their Enterprise Resource Planning national busines s units - Tristin Hoag, Vice president, ERP Solutions, and Tony Bruce, Vice President, SAP. Crystal Systems Solutions, Herziliya, Israel, has been awarded two Y2K service contracts by Ford Motor Company. Oracle Corp., Bethesda, MD, has been awarded Y2K contracts by the states of Michigan, Virginia and Ohio. Sapiens, Research Triangle Park, NC, has won a $2 million Y2K contract with JD Williams. Sponsor Advertising BDM International (TRW Systems and Information Technology Group) Do you need help juggling all your Year 2000 responsibilities? With BDM and our SMART/2000+SM solutions, you have a partner to help address your most critical business priorities and technical requirements - from risk assessment, program management, and conversion, to independent test and compliance validation. We deliver project tracking, configuration management, and control metrics that help ensure enterprise-wide integrity and minimize your risk from start to finish. We have a mature process, a dedicated team, and experience that demonstrate the strength of our solutions. Gain the upper hand now by calling BDM: (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. The Restore 2000 methodology is ITAA*2000 certified. In addition, software development processes at CACI have been independently certified as being at Level 3 of the Software Engineering Institute (SEI) Capability Maturity Model. Achieving SEI Level 3 p rovides 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. Worldwide Headquarters 1100 North Glebe Rd. Arlington, VA 22201 http://www.caci.com e-mail:npeters@hq.caci.com DMR Consulting Group Inc. DMR Consulting Group Inc.(formerly DMR TRECOM), an Amdahl company, is a global consulting organization of nearly 8,000 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. 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: Our offerings include: * Year 2000 risk assessment * Mainframe inventory verification & code remediation (COBOL, Natural, Assembler & PL/1) * Midrange COBOL remediation (DEC, HP, UNISYS, Wang, DG, NCR, Bull & Tandem) * AS/400 remediation (RPG & COBOL) * Networked PC Year 2000 Analysis tools applications: Access, Excel, Foxpro, Lotus 1-2-3 Languages: Basic, Visual Basic, C, C++, dBase, Clipper, Paradox PC Hardware, BIOS & Operating Systems * Testing: Tools: Data Commander for future date testing, TCS (Test Control System), Services: Test management & execution, Facilitated Test Planning, Test strategy. 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 http://www.itaa.org/y2kcal.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/2kout looksub.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