SILVER LINING TO MILLENIUM BUG CLOUD MAY EXIST

by Heather Sote

The Y2K race is almost over, and for interantional businesses there is no consolation prize.

On the first day of the new century, computer systems withprogram codes that cannot recognize beyond December 31, 1999 will begin to fail.

Imagine the impact this could hae on international business in a world that depends on computers in order to function.

This concept may seem hard to believe, but many of the world's most critical computer systems cannot recognize dates beyond 1999. Billions of dollars are beign spent to correct this "millenium bug", also known as Y2K (short for the year 2000).

To solve the millenium bug, companies and countries will have to check and test computer codes in thier systems at a cost of from $1 to $1.50 per line.

For corporations such as General Motors, Citicorp and AT&T, this adds up to more than $500 million dollars to review and repair their internal systems. Businesses may end up paying more than $800 billion to correct the problem.

Cost is not the only problem with the millenium bug. According to a recent IBM survey, only half of the chief information officers in Europe reported they even had a working strategy to deal with the problem.

Dan Wagnes, a systems tester at IBM in Spackenkill, NY said the problem with businesses in Europe is that they hhave been more concerned with the conversion of the Euro currency instead of focusing on Y2K. "The integration of the Euro itself is a giant computer reprogramming challenge," said Wagnes.

Unless more is done, computer systems in businesses around the globe will be unprepared for the year 2000.

Bob Mills, an IBM computer consultant and year 2000 expert, predicts there will be a millenium-bug induced global recession of up to 60 percent. "This economic downturn will begin during the second half of 1999 and could last a year or more," said Mills. "The reality is that the ripple effect is going to hurt everyone, but the companies that have taken care of their own problem will be able to recover faster, and be in a wonderful position to acquire the competitors who don't survive," said Wagnes. "The opportunities are tremendous if you get it right in an industry that got it wrong."

Awareness of y2K is high but progress has been slow. "The issue is pervasive, and the deadline won't move," said Mills. "That is why IBM is urging its customers to take immediate action. Y2K is real, it is imminent and it is important to address this issue now."