CRT International Inc. is an IBM
TM ISV
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September 1, 1998
Reproduced by IBM with permission of the author
No time to lose
A review of Year 2000 options for System/36 users
by Ron Pierner, CEO, CRT International Inc.
As the countdown continues to the Year 2000 crisis, organizations everywhere are wrestling with how to make a smooth transition on the systems side. There's no time to lose. According to a Gartner Group survey, thousands of companies around the world are still unprepared to deal with the Year 2000 computer date change. It's like a time bomb ticking away inside these organizations. In fact, the latest Information Technology Association of America (ITAA) survey on the Year 2000 software conversion found 44 percent of respondents have already experienced Year 2000 failures under actual operating conditions and 67 percent reported failures under test conditions.
Most System/36 users today recognize that Year 2000 needs to be a top priority. Quite simply, time is running out. Yet, human nature being what it is, some are still waiting for a magic bullet that will put an end to the crisis. Or, they may be actively seeking ways to move forward, but haven't yet formulated a strategy. Often, the problem is bigger than they thought. Or they find there are as many questions as there are options. Questions like:
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What's the minimal preparation needed to ensure Year 2000 readiness? |
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Should we keep our hardware, our business applications - or both? |
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Or is there a compelling business case to look at alternative Year 2000-ready solutions? |
There are no simple answers. In our consulting practice, we've worked with literally hundreds of System/36 clients on Year 2000 readiness. And for each one, the answer is different. We have, however, identified three main Year 2000 options for System/36 users:
- Upgrade the System/36 operating system (System Support Program or SSP), while fixing the current business applications (either manually or using Year 2000 tools);
- Move to newer technology, including new hardware and business software; or
- Move to new hardware but keep and fix the current business applications.
Each option has its merits. Each one also has its challenges. The following summarizes the basic business case for each scenario.
Option 1: If it works well, fix what you have.
Many System/36 users are looking to minimize the amount of change required to sail on into the 21st century. With good reason. Over the years, System/36 hardware and software applications have yielded a tremendous return on investment. Even today, they do basically everything required by many users - without needing a lot of day-to-day management. So why not fix only what needs fixing, and avoid more expensive upgrades?
Clearly, the low-cost option is to keep both your hardware and software. There are just two minimal requirements: (1) Upgrade your System/36 operating system (SSP) to the latest version and Program Temporary Fix (PTF) level; and (2) Fix the code in your current business software, which can be done manually, or using an automated Year 2000 tool.
For example, we have helped many of our customers convert their applications in less than four weeks using our ConveRT/2000 tool. That's a small percentage of the time it would take to do the same work manually. {For more information on Year 2000 tools, see www.softmall.ibm.com/as400/year2000.html}
But a word of caution: while this appears to be a quick, low-cost Year 2000 solution, there's no guarantee the conversion process will be fast and simple for everyone. Interestingly, we have found that fewer than one percent of our clients have chosen this route. They have identified a number of drawbacks, including:
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Hidden costs and complexity. The SSP upgrade can be very costly and time-consuming, depending on your current version and PTF levels. In our experience, many System/36 clients are not only using their original hardware and business software; they're using the same version of the operating system they've had from day one. For some, we've estimated it will require two to three days of downtime to bring the system up to date - plus the time and cost of fixing their business software.
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Technology limitations. There's limited scope to take advantage of emerging technologies. It's very clear that the new IBM technology is moving forward on the AS/400e series platform - not on System/36. For example, it's more expensive and problematic for System/36 users to integrate a bar code reader than on a newer system.
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Even adding a personal computer (PC) into a network can be more costly. And certain applications, including e-business and Lotus Notes, are simply not viable.
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Systems management and performance issues.
At the end of the day, users who stay with System/36 will still be running older systems. Response times will be much slower than with today's systems - and there's no way to improve the throughput. In addition, maintenance costs will continue to run higher. Even if users have few problems today, they will likely experience increased downtime as the equipment continues to age. And, over time it will become increasingly difficult and expensive to source the necessary parts and service for repairs. Not a pretty picture.
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Capacity limitations. Most System/36 users don't have enough capacity to run business applications and Year 2000 fixes on the same system, simultaneously. They need either to hire someone to complete the conversion off-site, or schedule the Year 2000 work during off-hours, such as weekends, when it won't interfere with production. Either way, there are additional costs involved. |
The truth is, you can't keep your current system running forever. The question is, do you make that call before you invest in making your System/36 Year 2000 ready, or after? In other words, do you put your technology dollars into a long-term business solution - or into fixing older hardware?
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SIDEBAR:
Option 1: Getting started
If your strategy is to update your current System/36 and your business software, the following questions will help you chart your course:
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Option 2: Say goodbye to the old world, bring in the new.
For many System/36 users, resolving the Year 2000 crunch is just the tip of the iceberg. In setting their course of action, they must consider broader questions about how well their current system can meet their needs - both today and tomorrow. For these users, the goal is not necessarily to minimize the amount of change required for Year 2000 readiness; it's to make strategic investments that will position them to use new technologies more effectively - all the while ensuring Year 2000 compliance.
Often these organizations conclude that the best way to move forward into the 21st century is to leave the System/36 platform behind. Instead, they choose to invest in totally new hardware and new business software. With the new solution up and running, they stand to gain a number of key benefits, including:
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They address their Year 2000 issues. |
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System performance improves dramatically. |
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Maintenance costs can drop significantly. |
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They can take advantage of advanced technologies, such as e-business and Lotus Domino. In fact, based on new capabilities like these, many of our System/36 clients find a very high return on investment with this option. |
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And, they can tap into the enhanced functionality of newer application packages. The functionality and flexibility of packaged software has greatly increased in recent years. Many new bells and whistles are now available that weren't offered even five years ago. |
New software functionality like this can translate into strong business benefits. Yet there are potential drawbacks, depending on your choice of business applications:
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Significant investment. It may be surprising, but while the cost of new hardware may not be significant, the cost of new business software can be considerable. And, there could be additional costs in terms of modifications, training and downtime. However, these costs may be offset by attractive financing packages, by the lower cost of ownership of a new system, and by the return on investment of new computing capabilities.
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Extended implementation time. The process of introducing new software can often take months - especially if time is required for modifications or user training. For many organizations, time is running out. They may begin experiencing the impact of Year 2000 issues well before their new hardware and software is in production. In fact, we have several current clients who came to us for help fixing their old System/36 applications after they realized their full-scale implementation wouldn't be ready in time.
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Growing pains. Depending on which hardware and software you choose, new technology can lead to extensive changes to the way you do business. The ultimate impact will be positive, but getting there could be a challenge. |
For these reasons, we urge our System/36 clients to identify carefully which hardware and software options will best fit their needs - and to make sure that the changes they are contemplating are well worth the price of admission.
| For more information on choosing a new hardware platform, see Appendix A. For assistance in locating new Year 2000-ready applications for your industry, see the IBM Year 2000 Web site at www.as400.ibm.com/developer/year2000 |
Option 3: Get the best of both worlds
If the cost of upgrading your System/36 is daunting - but a total system renewal is too costly - there is a middle ground: replace your System/36, but keep and fix your current business software. This approach offers many of the advantages of the previous two options, without most of the drawbacks.
In the first place, you can retain your familiar System/36 operating system. SSP now runs on every AS/400e series model. In fact, you can run multiple copies of SSP right alongside the AS/400 operating system. And, the latest SSP release (version 7.5) is Year 2000 ready and will be supported by IBM to at least May 31, 2000.
Other benefits to option three include:
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Outstanding price performance. There is a perception that moving from the System/36 platform can be extremely costly. In actual fact, you can typically make the transition to IBM AS/400e series for anywhere from $8,000 to $20,000, including hardware and operating system. At the same time, you'll find dramatically improved performance. Our clients have experienced up to 12 times faster throughput in batch mode by moving to the AS/400 platform, without any change in software code.
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Speedy implementation. It is much faster to move to new hardware and fix your existing System/36 applications than it is to attempt a full-scale implementation of new business software. And, since you are using the same software code, there's no significant change to the way your applications work - or the way you run your business.
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Easy integration of new technologies.
With new hardware in place, there are ample opportunities to introduce new business applications gradually, as they make sense for your organization. For example, with new technology in place it would be possible to implement a sales automation solution. Equipped with a laptop computer, sales representatives could sit with their customers and review a product catalog online. And, they could place orders electronically, right on the spot - without any manual paperwork. The System/36 simply cannot support this kind of advanced capability.
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Reduced maintenance costs. Depending on which hardware you choose, you can anticipate reduced maintenance costs. |
Of course, you will still have the work and expense of fixing your existing applications. But for many System/36 users, this task is far more feasible than introducing new business software, at least initially. And, there are excellent tools available that will reduce the time and the cost involved.
For more information on choosing a new hardware platform, see Appendix A.
Summary
Each of these three options can lead to a successful Year 2000 transition. But in our experience, option three represents the most easy-to-live-with, timely and cost-effective approach. By moving to new hardware, you not only achieve immediate Year 2000 readiness; you also position your organization to take full advantage of new technologies. At the same time, by fixing your current business applications, you avoid the substantial costs of moving to a new software platform.
Finally, and most importantly, you have a better chance of completing the transition before the new millennium begins. You can always decide to introduce new business applications down the road. But the Year 2000 is one deadline that won't wait.
Ron Pierner is CEO of Computer Resources & Technology International, Inc., based in Mukwonago, Wisconsin. For more than 20 years, the company has been providing world wide industry with top level software, hardware and services. Currently, CRT International offers ConveRT/2000, a Year 2000 tool that has been successfully used by hundreds of companies to complete their Year 2000 conversion. For more information, visit the CRTI Web site at www.crtint.com
"APPENDIX A"
Choosing a new hardware platform
The System/36 is one of the greatest success stories in computing history. But in light of Year 2000 issues, it may be time to move on. Which new platform is your best bet? Some of our clients opt for a PC-based network. But for most System/36 users, the easiest migration is to IBM AS/400e series, for a number of reasons:
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High comfort level with the technology. For System/36 users, AS/400 technology is very similar to their current system - without the limitations in terms of adapting new technologies or expanding power and capacity down the road. In fact, the SSP system with which you are already familiar will run right alongside the AS/400 operating system.
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Lower cost of ownership.
There are many hidden costs in running a PC network. The total cost of ownership for AS/400e series is among the lowest in the industry. According to IDC, "If customers are looking for a lower-cost server platform, IDC's research consistently shows that the AS/400 is the most cost-effective platform for commercial workloads." (IDC 8/97)
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Simplified systems management.
Unlike a PC network, AS/400e series does not require in-house expertise to manage the systems. In fact, we find that some of our System/36 users can continue to use their existing 5250 devices; they just plug them in and they're ready to play.
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Extensive software selection. There are literally thousands of Year 2000-ready software packages available on AS/400e series from IBM Business Partners. It has been our experience that some applications, such as a closed-loop manufacturing system, are hard to find for a PC network.
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Room to grow. With PC servers, growth capacity is limited. AS/400 scales the full computing spectrum, from the entry AS/400e server (model 150 or 170), which offers excellent price performance in small enterprises (or as a remote server in a distributed environment), to the largest AS/400e, which supports thousands of users.
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Excellent financing. IBM offers substantial discounts and attractive leasing options to help System/36 users make the move to the AS/400 platform. For some of our clients, the cost is as little as $300/month. |
For more information on AS/400 solutions, visit the AS/400 Web site at http://www.as400.ibm.com
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SIDEBAR:
Getting ready for Year 2000:
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PTF's for System/36 operating system (SSP)
Numerous tools are available through IBM Business Partners to help you prepare your applications for the Year 2000. These tools will help identify date usage in programs, data files and utilities, like sorts and queries. Some even assist in automating the conversion process, for example, switching from a six-position date field to an eight-position date field. For more information, please visit the IBM AS/400 Year 2000 tools Web site at www.as400.ibm.com/developer/year2000/y2ktol.html |
COMPUTER
RESOURCES & TECHNOLOGY INTERNATIONAL, INC.
Corporate
Offices:
52260 Old Grade Rd.
Mason, WI. 54856
715-763-3400 Toll Free 877-844-7786
Email:
crti@crtint.com
Offices
in Wisconsin and California
* S/36 and AS/400 are registered trademarks of International Business Machines Corp.