Twelve o’clock on Dec. 31st does not have quite the same implications for companies as it did a year ago.
The year after the Y2K-computer-bug-scared companies across the world into spending billions of dollars to update computer systems, and provided as much money and busywork for the companies that performed these tasks, businesses are a lot calmer, and in many instances, still out a few bucks.
Seifert Systems Invests in Energy Efficiency to Strengthen Operations
For manufacturers, energy is more than just another operating expense. It plays a critical role…
Learn More
Bruce Oliver, general manager of the Providence branch of Complete Business Solutions, Inc., said CBSI was a 50 to 60 percent Y2K oriented business from 1998 to the end of December in 1999.
“It certainly was something that was a good steady revenue,” he said. “The period at the wind-down was a very difficult period for us.”
Oliver said as soon as January 2000 came without consequence finding work was not easy.
“It took us six to eight months to replace the revenue with other types of business,” he said. “We had to, in essence, not reinvent, but change our focus to try to read the market again. It’s now a combination of many small things, rather than one big thing.”
Anthony Vitale, owner of Cranston-based Pro Systems predicted last November that the Y2K computer bug was going to be a big event. His company spent 1998 and 1999 updating clients’ software to be Y2K compliant.
“It is a serious problem,” said Vitale at the time. “There are consequences that will cause interruptions.”
When it didn’t cause the interruptions Vitale had estimated, the company was able to continue business as usual in what Vitale calls a ‘peaceful transition.’
“I was relieved, not shocked,” he said. “In the business of computer software you never know when a problem may crop up so we were very relieved it was a non-issue.”
“We were able to move onto newer projects without having to get into the potential situations that could have been out there.”
At GTECH, the West Greenwich-based international lottery giant, there were no disruptions as a result of Y2K, yet staff was called in to work overnight. The entire company was on alert throughout the evening, said Bob Vincent.
“Most of the revenue we generate is dependent on complete up-time so any disruption in service can have dramatic financial consequences.”
Another of the many companies that had no problems with Y2K was Textron. In December of 1998 the Providence company estimated it would spend up to $125 million to overhaul its computer systems. Textron’s Director of Advanced Technologies Charles Hewitt said it was going to be worth it.
“It’s a hazardous condition,” he said at the time. “There’s no roll of the dice. If you don’t fix it you’re in trouble. It may be the largest problem your company has ever undertaken.”
Two years later Hewitt said that although Textron ended up spending in the ballpark of just over $100 million, the Y2K preventive procedure was the biggest company-wide problem they ever undertook. He feels this was money well spent.
I like to believe we got the result we aimed for,” he said, “so I wasn’t that surprised, just relieved.”
This seems to be the general remembrance of the Y2K hype from the business community, as well as the general public: relieved, not surprised.
“There were so many providers and potential failure points,” said Oliver. “We always felt confident, professionally, but personally, I was amazed there weren’t more issues.”
