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Technology Stocks : Y2K (Year 2000) Stocks: An Investment Discussion

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To: Done, gone. who wrote (6792)10/10/1997 6:18:00 PM
From: Done, gone.   of 13949
 
Billions Of Microprocessors Could Fail In Companies Of Every Size, Threatening Critical Business Functions:

from exchange2000.com

META Group, Inc. (NASDAQ: METG) today announced that industry reports and its syndicated client research reveal a serious, yet virtually ignored, Y2K compliance problem with embedded systems that are found throughout organizations worldwide.

Embedded systems consist of computers or microprocessors that control the operation of machinery, equipment or processes -- everything from voicemail systems, security cameras, and process control systems at nuclear power plants to elevators, commuter train systems and telephone switches.

According to META Group, many of these systems contain date- sensitive devices, and should therefore be part of an organization's enterprise Y2K effort. The failure of these devices which are outside of IT's traditional domain could have wide-ranging impact on an organization, including the shutting down of critical business functions.

"Risk management of embedded system failures is one of the keys to managing a fully successful Y2K conversion," said Leonard Neely, manager of META Group's Y2K consulting practice. "Yet we see many organizations that are way behind in addressing this issue. The fact is, that while there are 26 months left to fix this problem, most facility departments are not staffed at the level required to accomplish the task in this timeframe."

Scarce Outsourcing Resources

According to META Group, companies with resource shortages have few outsourcing alternatives for addressing the Y2K embedded systems problem. Most outsourcers are in the United Kingdom, and their "pipelines" are filling up, says Neely.

Given this set of circumstances, META Group believes facilities departments have three options when tackling this issue. They can outsource the conversion to vendors such as Fluor Daniel, Millennium UK, or Conversant Business Technologies (CBT).

[Flour Daniel has a relatiosnhip with TPRO - comment by editor]

A second option would be for companies to handle the problem in-house by purchasing a methodology such as MOPAS 2000, which can help companies identify, prioritize and implement the analysis and testing of Y2K problems in embedded systems. Both Millennium UK and CBT use this methodology, which can be purchased from ERA, a UK-based independent contract research, development and testing organization.

With either of these options, companies can also turn to online databases developed by Fluor Daniel and CBT that offer listings of embedded systems that are Y2K compliant.

Failure to accomplish either of the first two options will mean waiting for new, unproven vendors using their own methodologies to enter the market, which will leave companies in serious trouble, according to Neely.

"The key to success here is for the facilities department to treat the Y2K conversion of embedded systems as an urgent business issue," said Neely. "They must minimize risk to the overall organization, weighing conversion cost versus cost of failure, and develop solid contingency plans."

Embedded Systems

Following is a partial listing of systems and devices that might have embedded micro-controllers in them that could be vulnerable to the Y2K date shift:

Medical

Imaging equipment

Fetal monitors

Fibrilators

Infusion pumps

Ventilators

Office Systems and Mobile Equipment

Answering machines

Copiers

Desktop computers

Faxes

Laptops and notebooks

Mobile telephones

Personal digital assistants

Still and video cameras

Telephone systems

Time recording systems

Voice mail

Building Systems

Air conditioning

Backup lighting and generators

Building management systems

Burglar and fire alarms

CCTV systems

Door locks

Fire control systems

Heating and ventilating systems

Elevators and escalators

Lighting systems

Safes and vaults

Security access control systems

Switching systems

Manufacturing and Process Control

Automated factories

CAD systems

Energy control systems

Manufacturing plants

Nuclear power stations

Oil refineries and related storage facilities

Power management systems

Robots

Switching systems

Water and sewage systems

Time/clock stamps

Transport

Airplanes

Trains

Automobiles

Air traffic control systems

Signaling systems

Radar systems

Traffic lights

Ticketing systems/machines

Car parking and other meters

Transport passenger information systems

Check-in

Baggage handling

Emergency equipment

Command and control systems

Speed cameras, radar speed detectors

Photo surveillance systems

Communications

Telephone exchanges

Cable systems

Telephone switches

Satellites

Banking and Finance

Automated teller systems

Credit card systems
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