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Technology Stocks : Discuss Year 2000 Issues

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To: C.K. Houston who wrote (281)10/17/1997 12:26:00 PM
From: C.K. Houston   of 9818
 
Billions Of Microprocessors Could Fail In Companies Of Every Size, Threatening Critical Business Functions

STAMFORD, Conn.--(BUSINESS WIRE)--Oct. 10, 1997-- Billions Of Microprocessors Could Fail In Companies Of Every Size, Threatening Critical Business Functions 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).

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

To support clients confronting these issues, META Group provides in-depth research, consulting services, conferences, and briefings that address all facets of the Y2K issue.

Headquartered in Stamford, CT, META Group, Inc. is an independent market assessment company providing research, analysis, and advisory services regarding developments and trends in information technology. META Group currently serves more than 1,300 clients worldwide. Additional information about META Group is available on the World Wide Web at metagroup.com -0- All trademarks are the property of their respective owners.

Posted on AOL by Neil Putterman, who handles marketing for Meta Group. They are not a remediation comapany. They are an analysts and consulting firm. His no is 1 203 973 6914
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