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Technology Stocks : Zitel-ZITL What's Happening
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To: jas singh MD who wrote (8599)7/7/1997 1:24:00 PM
From: Fred Puppet   of 18263
 
[ Limit on Conversion Costs ]

Jas, I disagree that code conversion costs will escalate rapidly as 2000 appoaches. The limitation on conversion cost is the cost of buying new computers + software. Why convert your 1960s custom database for more than the cost of buying an Oracle database plus some new Suns?

Further, many companies are already unhappy with the high cost of maintenance contracts for old mainframes. A few years ago, my company realized that the mainframe maintenance contract had an annual cost about equal to the purchase price of a new computer. We sent the mainframe to the dump. For other companies that are still on the fence, the threat of an additional y2k converion expense to maintain the old software will push them to make a purchse of new equipment and software. It will be the potential y2k conversion cost that justifies the expense of installing and training on the new software.
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