Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : TAVA Technologies (TAVA-NASDAQ) -- Ignore unavailable to you. Want to Upgrade?

To: Gerald L. Kerr who wrote (14654)

4/11/1998 3:17:00 PM

From: Hawkmoon

Respond to of 31646

This from the Y2K-An investment decision thread:

*********************************************

From the 'you must be kidding' department:
Story at zdnet.com

[IMAGE] A Y2K Strategy Called Surrender

By Mark Mehler

[IMAGE]Rather than debug their systems, some Fortune 2,000 companies
have decided to stand at ground zero when the Y2K time bomb detonates.

Can't remediate on time? Think bypassing the Year 2000 problem with an
ERP solution is a pipe dream? How's this for a plan of action? Drop
back 15 yards and punt.

A growing number of Fortune 2,000 companies are giving up on the
prospect of renovating or dumping their legacy software over the next
21 months, and instead are bracing for the worst by formulating
"contingency plans" for a new era of non-compliance.

Enough major clients are throwing in the towel, says John Lucke,
director of marketing at Technology & Business Integrators, that the
consultancy has added a new contingency planning discipline.

NetSuite Development Corp. is courting VARs to resell its line of
networking tools, which includes a product that documents Year 2000
compliance problems in found network gear.

The company's NetSuite offering includes network design, auditing and
Year 2000 compliance tools. VARs can buy a NetSuite Reseller
Information Kit, which includes a for-resale unit of the company's
software and a second unit for demonstration purposes. The kit is
priced at $8,000, but with a 40 percent reseller discount it costs
$4,800.

NetSuite's VAR program also has VAR training at the company's Boston
office and joint sales-call opportunities.

David Warshay, channel sales manager at NetSuite, says the Year 2000
tool has become a "must-have" product. To back up that claim, he cites
market research that indicates 93 percent of the networks installed
before 1996 are non-compliant.

NetSuite is aiming at a limited number of resellers within areas in
North and South America. And within regions, the company plans to
limit competition among NetSuite resellers by making sure they target
different vertical markets.

For more information on the program, contact dwarshay@netsuite.com.
"There just aren't enough resources to get the job done in time," he
says. "And, at this point, nobody knows how severe [the crisis] will
be . so we're focusing more on helping clients anticipate the outcome
and take the necessary precautions, without having to spend a lot of
money."

A solid contingency plan, adds Lucke, ought to include the following
elements:

[IMAGE] Complete documentation of all assessment, conversion and
testing efforts, as well as a rudimentary "prudent man" defense
against the inevitable wave of shareholder lawsuits (see "Are You At
Risk?");

[IMAGE] A full risk analysis that will tell you which systems and
applications pose the greatest Y2K threat and should be remediated
first;

[IMAGE] "Program encapsulation" services that deduct a couple of
decades off the date data, effectively buying time for the tardy;

[IMAGE] Interim approaches such as windowing, data expansion to hook
your Y2K- compliant applications to thousands of non-compliant
supplier and customer systems.

Of course, all this is not to say that the white flags are
predominant.

Danny Meeks, a pre-sales technician a CTS Inc. a Roswell, Ga.-based
integrator, says you can get dizzy counting the number of Y2K
renovation specialists hanging their shingles.
**********************

If this is the case, then I would suspect that TAVA stands to make quite a bit of money during the next two years and far beyond 2000.

Why?? Because ANY manufacturer that decides to sit back and let it just "happen" will 1.) Want a full inventory of systems. 2.) Want contingency plans worked through that will allow some semblance of operation. 3.) Use this opportunity to completely update their complete manufacturing system to modern and efficient levels.

My rationale for this is that should Y2K have the effect that many suspect, then logic would dictate that the best approach is to become fatalistic about it, safe in the knowledge that it will be an equal opportunity disaster that won't necessarily give your competitor the edge.

Since TAVA has years and $250,000,000 worth of experience assisting clients in upgrading their plant operations, it stands they will be well positioned to provide the necessary consulting services at that time.

Again, if true, I see TAVA as having definite long-term sustainability of earnings and revenues for years to come.

On the other hand, I don't exactily like the idea that companies are throwing in the towel and preparing for the worst either.

In fact, that frightens me even more.

Regards,

Ron