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in this Issue. 


DMR News 


Amdahl Global Services in 
Central Europe Doubles 
Results 


Amdahl Merit Scholarships 


Are We Ready for the Next Century? 


by Wit Ham Flanagan 

he Year 2000 problem has been with 
us since Amdahl Corporation was 
founded. Now we must ensure that 
our company and its subsidiaries solve this 
problem at all levels of the organization within 
the next sixteen months. 

While this is certainly a challenge, it is also an 
excellent opportunity. To take advantage of it, 
though, each employee must make a concerted 
effort to help the company throughout the 
process. As Team Amdahl,” we can change 
our culture where appropriate, make sound 
business decisions, and simplify our 
business processes and IT systems, 
making Amdahl a much more competitive 
organization. Each team member must take 
responsibility for their business processes, 
applications, and hardware to assume they are 
Y2K ready by July 1999. 

The Challenge 

Achieving Year 2000 compliance is a complex 
and risky initiative. It involves taking apart 
entire infrastructures, modifying individual 
components, and following an orderly approach 
to putting the systems back together again 
while maintaining overall functional integrity. 


William Flanagan, 

Sr. Vice President 
and Y2K Program 
Officer 

Our current challenge stems from the long- 
accepted convention of representing a date 
with six digits: YYMMDD. This approach is 
adequate as long as all the years are within the 
century; the two leading digits can be assumed 
to be “19,” This two-digit representation breaks 
down, however, for any calculations using 
dates beyond 1999, As there is no way to 
register the year 2000, it will in effect default 
back to 1900. This will impact all kinds of 
computer processes, including: 

>■ Date calculations — The date 12/31/2000 
minus 12/31/1999 equals one year, but 
001231 - 991231 equals negative 99 years. 

> Database and file sort sequences — 001231 
will sort ahead of 991231 . 





The problem is not limited to applications; it 
involves all aspects of the IT infrastructure 
including hardware, telecommunications, and 
operating systems, as well as third-party software. 
It also involves all processes that have embedded 
dependence on IT systems such as security 
and process control systems, microwaves, and 
elevators. And it is not limited to the systems 
over which we have direct control; any dependence 
on suppliers, customers, or business partners 
is a potential problem. Each of these depen- 
dencies must be managed to ensure that one 
of these relationships doesmt corrupt the effort 
we put into making our systems Year 2000 
compliant. 


V Selection criteria — An instruction to select 
all records with a date greater than 990101 
will exclude dates from the year 2000. 

V Effective dales— An instruction to find 
the latest price with an effective date 
less than or equal to the current date 
will fail to find dates more recent than 
000101 , 

V Expiration triggers— Some programs may 
assume a conditional with a year 2000 
date has expired because it seems to 
be older than the current date. 

(See Y2K, page 2) 


Photo courtesy of Victor Inouye 



(Y2K continued from page 1) 


y Archive/purge routines — Files with year 2000 dates may be 
mistaken for out-dated Information and archived or purged 
incorrectly. 

V Fielded data — Many screens have a hard-coded “19” in date 
fields to print or display a date such as "January 1 , 19xx/' 

The two-digit standard is a legacy still embedded in most main- 
frame applications using common programming languages. It is 
also implemented in many files and databases, although more 
current products such as DB2, Sybase, and Oracle support a 
four-digit year. The lack of a standard naming convention tor 
date fields complicates things, as does the use of two-digit 
dates in purchased applications and their integration into newly 
developed client-server applications. The potential for disaster is 
dear. 

The most important consideration is time. Unless altered, many 
existing systems will fail before the year 2000. With an inflexible 
deadline, we are faced with the possibility of systems failure in 
less than sixteen months in an industry where 86% of projects 
have historically been delivered late. 

Amdahl has three primary Y2K objectives; 

V Keep the business going and maintain profitability 

V Become Year 2000 compliant 

y Improve significantly the company’s infrastructure, which is 
too costly for the size of the business to compete effectively 

These three objectives are equally important for the survival of 
Amdahl. 

Amdahl’s Y2K Program Progress 

The Y2K program at Amdahl was established several months 
ago [ed. note : see broadcast memo from David B. Wright dated 
3/2/98] with several key decisions and structures put info place. 
The executive Y2K steering committee includes the president and 
his direct reports: DMR has been selected as the Y2K consultants; 
and the Y2K management team has been established consist- 
ing of William Flanagan, Y2K Program Management Officer; 
Andre Fournier, CIO; Jim Wendling, Internal Audit; and Paul 
Collier, DMR. In addition.. Y2K coordinators have been assigned 
for all business areas. The level of the people assigned shows a 
strong commitment by the Amdahl executives to solving the 
Y2K problem in a very short time frame. 

The responsibility of the Program Management Office (PMO) is 
to oversee an enterprise-wide effort. The PMO will plan, coordi- 
nate, and initiate projects; manage the risks and benefits; and 
control the direction of program activities. The program office is 
not responsible for the delivery of a solution, but it is account- 
able for project success by ensuring that problems or related 
issues are properly addressed. 


Significant progress has been made in establishing the process, 
deliverables, and skills requirements for both the current enter- 
prise-wide assessment (EWA) phase and the PMO. The EWAfor 
North America is coming to an end: the inventory is almost com- 
plete and we expect that the assessment phase will be finished by 
mid August. The PMO documentation is progressing on schedule, 
and Y2K programs are undemay in Europe and the Pacific Basin. 

The inventory is complete for the approximately 300 custom 
North American and corporate applications. We have gone 
through a first cut in the determination to retire, replace, or 
remediate. Project teams are in place to install Oracle. 1 0.7 
financials and the Clarify suite of applications replacing approxi- 
mately 21 systems. 

The next steps will require users throughout the company to 
make crisp business decisions about application use and pro- 
posed changes, as welt as systems and business practices. 

This is where Team Amdahl” can make a significant difference 
by converting a Y2K expense — i.e., remediation — into an invest- 
ment by installing new systems (Oracle, the Clarify suite, etc.) 
with minimal modification, helping the company simplify process, 
practice, and systems. Over the next few months, I will be send- 
ing out broadcast messages and writing periodic articles for 
Update which will provide more detaif on how each individual 
can take responsibility for their own desktops and other equip- 
ment to ensure Y2K compliance while streamlining our business 
practices. In the meantime, please contact your local Y2K coor- 
dinator or my office if you have any questions. 

Becoming Y2K compliant is a challenge. I am confident, howev- 
er, that with our excellent executive support and the Amdahl 
“can do” attitude, we will not cause our customers, business 
partners, or ourselves a problem when the clock turns to 
January 1 , 2000. 

William Flanagan is a senior vice president and Amdahl's Y2K program 
officer You may also read his comments about Y2K compliance in the 
August 3-9, 1998 , edition of the San Jose Business Journal, or online 
at http:J/www . anjcity.com/sanjos&/stories/080398/editoriaI4.htmi. 



DMR News 


DMR to implement Land Registry 
Reform for Quebec Government 


DMR 



DMR has a new agreement with the 
Quebec government to implement a land 
registry reform program. The agreement 
stipulates that DMR will develop, imple- 
ment, and maintain the registry system for a period of 15 years, bring- 
ing $50 million in revenue to the company. The development phase 
alone — set to begin in October 1 998 — represents a $20 million con- 
tract. 


An Amdahl Company 


The land registry system will be developed in conjunction with DMR 
business partners Bet! Canada, Pierce Leahy, and Notarius, and will 
use a variety of technologies, including the Internet, electronic 
commerce, digital image processing, and electronic certification of 
users and their business transactions 


DMR Wins BellSouth Y2K Testing Contract 

Based on a successful strategic test planning effort by DMR , 
BellSouth Telecommunications has awarded the company a significant 
contract for Year 2000 testing. DMR will test the core processes of 
BellSouth^ Customer Record Information System (GRES) billing 
records. The ORES records contain approximately 40 million lines of 
code, while the core processes have close to 10 million lines. 

BefISouth — a $21 billion company — performed its own remediation, 
and selected DMR to do the quality assurance testing to affirm that all 
code will perform the same before and after the year 2000. The DMR 
testing will also provide a clear audit trail for proof of due 
diligence. 

DMR estimates the current contract will be worth $5-10 million, 
with potential future work valued at $10 million. 


United Way Victory Celebration 

Amdahl Wins Gold 
Spirit Award 

Amdahl employees are among the most 
generous in Silicon Valley. 

And while we may have all suspected as 
much, the fact was publicly recognized at the 
victory celebration for the 1997 United Way of 
Santa Clara Valley (UWSCC) giving campaign. 
Amdahl received a “Gold Spirif award for 
results totaling more than $100 per capita. 
Including employee pledges and the compa- 
ny's corporate match, Amdahl pledged to 
donate more than $380,000 during the 1997 
campaign, 

"Amdahl has always been a strong supporter 
of the United Way campaign," said Gwen 
Roberts, UWSCC Campaign Manager and 
representative for Amdahl. “The company 
has a long tradition of giving generously to the 
community, and this award acknowledges that 
generosity,” 

The 1 998 United Way campaign at Amdahl 
will run from September 28-October 9. 


Organizational Change Proves Positive 

Amdahl Global Services in Central Europe Doubles Results 

At any company these days— especially in the high tech industry — organizational change seems unavoidable, and sometimes 
incomprehensible. Amdahl has been no stranger to change during the past few years, but the business results are now beginning 
to show that these new structures can have long-term benefits for the company. 

One example of a new structure that is facilitating positive results is Amdahl Global Services in Central Europe, previously known 
as the Systems Service Group. Formed in Q4 ’97 by combining Amdahl educational and operational services with DMR consulting 
[ed. note: see Update, February 23, 1998], the group is already experiencing significant success. 

By Q5 '97, AGS was outpacing their goals and had earned $500,000 in revenue and orders. In Q1 1998, that number nearly 
doubled, generating a margin of almost $1 million for the company. 

These figures are not the only factor indicating that the team is on the right track. Some important businesses have joined the 
customer list (e.g. t Commerzbank), and, more importantly, more than a few people within Amdahl are learning that selling services 
can be a perfect way to leverage the hardware business. 

-Ciaus-Dieter Schaefer, Amdahl Global Services CEU 



Is Intelligence Genetic? 

Amdahl Progeny Nab Merit 

They Ye winners. And they're ours. 

Well, sort of. 

Each year, Amdahl awards scholarships to those children of 
U.S. employees who qualify as National Merit Scholarship 
finalists. The National Merit Scholarship Corporation (NMSC) 
chooses finalists through a rigorous competition that weighs 
grade point average, standardized test scores, extracurricular 
activities, personal essays, and recommendations. Fewer than 
one percent of the nation's high school seniors are designated 
semifinalists and become eligible for selection as finalists. 
When finalists have been selected, the names of children who 
are employees of Amdahl and its subsidiaries are forwarded 
to Amdahl by the NMSC. 

This year, Carol Hu and Elizabeth Dzeng both achieved that 
distinction and were named 1998 Amdahl Merit Scholars. 

Carol is the daughter of Sandra Hu T who has worked in the 
Amdahl Storage Group for 13 years. Elizabeth's father, 

Edward, is a systems engineer with the Amdahl Federal 
Service Corporation (AFSC). Both students will receive an 
annual scholarship of $1,000 for up to four years during their 
college careers. 

In addition to the scholarships, both students were presented 
with certificates at luncheons held on July 15 in their honor. 
Elizabeth and her father (her mother was out of the country) 
were hosted by AFSC President John Notaro and senior exec- 
utive management at a restaurant in Virginia. David Wright, 
President and CEO of Amdahl, hosted Carol and her parents 
at a luncheon at headquarters in Sunnyvale. 


Scholarships 



David Wright, Amdahl President and CEO, presents Carol Hu 
with a certificate announcing her Merit Scholar award. Carol 
is the daughter of 13-year employee Sandra Hu (far left) and 
Ken Hu (far right). 

Carol and Elizabeth join 11 other children of employees who 
have been awarded Merit scholarships since Amdahl began 
participating in the program in 1995. Children of all U.S. 
Amdahl, DMR, and CE Services employees are eligible for the 
scholarships. Students who would like more information about 
scholarships may ask their high school counselors for a copy 
of the Guide to the National Merit Scholarship Program, or 
write to the National Merit Scholarship Corporation; 1560 
Sherman Avenue, Suite 200; Evanston, Illinois 60201-4897. 



AFSC President 
and Director John Notaro 
(center) poses with Merit 
Scholar winner Elizabeth 
Dzeng (right). Elizabeth is 
the daughter of Amdahl 
employee Edward Dzeng 
(left). 



Amdahl Field Employees Receive Gym 
Membership Benefits 


A mdahl has now extended its corporate gym membership program 
to include all LLS. field staff, Amdahl Wellness Solutions has 
negotiated memberships at 24-hour Fitness (1-800-204-2400) and 
Bally Total Fitness Gyms (1-800-2GETFIT) across the country. Both clubs 
have several locations in the U.S. The 24-hour Fitness membership discount 
is available through August 31 only, so act quickly. The Bally Total Fitness 
membership discount is available through December 31, 1998. Fliers with more 
information have been distributed throughout the field. If you would like additional fliers, please call (403) 746-6830 and 
leave your name and mail stop information. These memberships have been negotiated at no cost to Amdahl. 

The staff at Amdahl Wellness Solutions is committed to helping you achieve your health and fitness^goals. Please feel free 
to call any of our consultants, and be sure to check out the AWS web site at http:/www.hr.amdahl.com/fitness or by Lotus 
Notes at fitness_center@amdahl.com. We welcome the opportunity to meet with you whenever you are visiting Amdahl 
headquarters. 

Best of luck on your health and fitness journey! 

— Jane! Schumacher, Fitness Center Manager 



Amdahl Wellness Solutions 


Got Mail ? 

Making Sure The Paper 
Finds you 

If your office — anywhere in the world — has gone through a 
significant change recently in physical location ; telephone 
number, or headcount, the mail staff needs to know. Please 
help Corporate Mail Services deliver your mail as efficiently as 
possible by providing the following details to them: 

> The current physical address of the office 

> Telephone number 

> Contact person within the office who will handle mail distribution questions 
V Number of people in the office 

Mail Services would also like to know if you are receiving the correct number of copies of Update each month, and 
whether you have experienced any delivery problems such as late or missed delivery or too many or too few copies 
delivered within the past several months. The last edition published was dated June 1998 and should have reached 
ail offices worldwide no later than July 8. 

Please send an email with this information to Rod Sison T Manager, Corporate Mail Services, at 
rod_sison@ notes. amdahL corn, or call (408) 992-2064. 



- Amdahl External Web Sites - 

The following is a list of selected external web sites that Amdahl employees 
may find useful , This list is by no means complete, and if you know of a web site 
that you think would be of interest to people In the company, please 
send the URL to christy_Sang @amdahf com. 

Amdahl Around the World 

* Amdahl External Home Page - View the company through the eyes of 
customers and potential customers, 

http : //www . a md ah I . com/ 

* Amdahl in the Community - Read about how Amdahl supports the local 
Bay Area community. Programs such as Read to Succeed, Good Government, 
and Teacher Link are profiled, 

http ://www. a md ah!, com/doc/e vents/com m un . htm 

* DMR Web Site - This is the gateway to information about Amdahl 
subsidiary DMR. 

http://www.dmr.com/corporatif/index.htm 

* Fujitsu Ltd. Web Site - Learn more about Amdahl's parent company and 
the rest of the Fujitsu Group. 
http://www.fujitsu.co.jp/index-e.htmi 

* Worldwide Locations - A listing of Amdabl/DMR offices worldwide. 
http://www.amdahlcom/abouL f offices.htm 

Amdahl Products and Services 

* Consulting Page - Information about DMR Consulting and Amdahl Services 
and Support. 

http://www.amdahl.com/doc/products/prof. htm 

* Product Offerings Page - Research Amdahl’s product offerings, 
http://www.amdahl.com/doc/products/products, htm 

* Technical Support Home Page - Get technical and support information 
for Amdahl's products. 
http://www.amdahi.com:SO/support/non/pub/ 

* Year 2000 Product Information - Check out the Y2K compliance status 
of Amdahl's products. 

http://www.amdahLcom/y2k/' 

Customers 

* Customer Profiles - Enjoy the fruits of your labor! Read about how Amdahl 
is helping customers worldwide. 

http://www.amdah I, com/success/sucstor. htm 

News and Events 

* Amdahl Press Releases - Read the latest publicly-released information. 
http://www.amdahl.com/cgi-bin/press-index 

* Upcoming Events Page - information about upcoming trade shows, 
conference, and expos. 

http ://www. amdah 1. com/doc/events/u pcoming. htm 

* Whafs New Page - Brief summaries about the latest business stories 
at Amdahl. 

http ://www. amd ah J . com /wh atsn e w / 



Christy Lang 


designer 
Anne Swan 


We value your feedback. 

Please let us know if you have story ideas or 
comments about Update, We want to know what 
is going on in your corner of the world and how 
this publication can best serve all Amdahl 
employees. Contact us at: 

Phone: 403-746-3345 
Fax: 408-746-7289 
Email: christyjang@amdahl.com 
M/S 250 

1250 East Argues Avenue 
P.O. Box 3470 
Sunnyvale. CA 94038-3470 

Update is produced In house. It is printed on 
25% post-consumer stock and is recyclable. 

Update is published for internal use. 


Working at Amdahl 

* Employment Opportunities - investigate the range of employment 
opportunities at Amdahl. 
http://www.amdahl.com/doc/employmen1y