Strategia's CEO, Richard Smith, held a conference call today at 4
PM EDST to discuss STGI's progress and plans. He began by noting
that several research groups (Caper Jones, Gartner, Meta Group) all
suspect testing will require the most time and money in the Y2K
conversion process. Automated tools with validation checks assume
no liability that the conversion is compliant The code needs to be
run on mainframe or other appropriate system where software
conflicts and instabilities can be identified.
He noted that there are a limited number of testing capabilities and
resources available. Most disaster-recovery vendors provide Y2K
compliance tests as a sideline to their core business. And no d.r.
company to his knowledge has said they will convert your code if
you are not a client. STGI aims to fill this niche and become the
leader in Y2K compliance testing both in the US and in Europe.
STGI will provide full-system tests or piecemeal testing as code is
converted little by little. They just oopened the largest of their 3 test
centers, this one in Louisville, KY -- 30,000 sq ft, several large IBM
mainframes and necessary peripherals to do a number of large
organizations simultaneously.
Mr. Smith noted that STGI has had years of experience developing
testing methods and routines, and will provide test planning and
design for clients to determine compliance in large systems. Two
current Y2K clients are old customers (Tennessee and Mecklenberg
County) and one is new (Logan Aluminum). All have given STGI
small jobs to complete either in terms of lines of code (LOC) to be
converted or, in the case of Logan, an impact assessment. Follow
on work will depend on the quality of performance on the current
jobs.
He mentioned an interesting phenomenon. Industry decisions seem
to be based on confidence, not pricing. In other words, the primary
issue of concern is, Can you deliver a validated product and can
you deliver it on time?
STGI has just hired two people in key positions, one a VP in charge
of the Y2K services division, and another to provide first-line direction
of consultants and program managers -- these people are viewed as
the critical components in the process (stakes are high, deadline
firm). Both have IBM backgrounds plus more recent experience as
CIO's (Louisville Gas & Electric and Starr Bank, Cincinnati).
There has been no wage pressure on hiring. Because STGI is not
a software developer, they don't need short-supply programmers.
Other key talents have been readily available in the region. In their
US operation at the end of 1996, they had 20 people. They now
have 45, and plan to have 60 by mid-September.
Recognizing that they are not a software provider, STGI has forged
and plans to announce several important partnering agreements in
the near future. To the question, How's Europe going?, Smith said
they seem to be about 6 months behind the US (measures are # of
articles about the Y2K problem in technical publications, trade
shows, vendor-introduced solutions). STGI did one pilot project for
a French bank, and the European office is receiving increased
requests to provide presentations. Smith believes "lots will happen
in a hurry in Europe".
As to the number of STGI testing centers, he said they plan to add
one in the NE and one in the West probably within 180 days (from
start -- lease signing -- to finish, the Louisville center took 45 days).
He expects an AMEX listing before the end of July. A regulatory
review is in process now, and is making progress. The listing date
is not firm.
In response to a question on clarification, he said that several
relationships with tool vendors had already been established
(Europe too), and several more were coming.
END OF CONFERENCE CALL |
