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December 2003
- 8635 participants
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>From THE FUTURIST (May 1998)
The Year 2000 Problem:
The Good News and the Bad
The Year 2000 computer glitch has proved surprisingly
troublesome.
Opportunities as well as dangers lie ahead.
By Cynthia G. Wagner
Four years ago, an author named Peter de Jager submitted to THE
FUTURIST a reprint of an article he had published in a computer magazine.
Entitled "Doomsday," the article warned of what will happen to the
world's
computers when 2000 rolls around.
We editors rejected the article because it had already been published in
another magazine and because it had already found its proper
audience_computer programmers. We also felt that the "Year 2000
Problem" was a minor technical glitch that would probably be fixed long
before the year 2000.
We were wrong: The Year 2000 Problem (or Y2K) was more serious than
we thought. Very soon, what seemed like a minor technical problem to
us_and to most other people at the time_had set off a furor and even
created a new industry for consultants and programmers.
Peter de Jager went on to co-write (with Richard Bergeon) a very useful
book called Managing 00: Surviving the Year 2000 Computing Crisis [see
box on page 19]. And as the year 2000 approaches, this book has been
joined by multitudes of books, articles, reports, and Web sites
addressing
the problem.
For our part, the editors of THE FUTURIST are doing penance by
presenting this overview of the problem and its possible consequences. We
also will summarize some ideas on how to prepare to cope with it.
The Problem and What It Will Cost to Fix
In the early days of computer programming, dates were entered as a
six-digit configuration: two digits for the month, two digits for the
day, and
two digits for the year, or MMDDYY.
Now, every date-relevant program in every computer needs to be Y2K
compliant_that is, able to recognize eight-digit dates with four-digit
years as
opposed to two. Otherwise, the computer will not understand that life
goes
forward after the year "99" rather than magically skipping back in time
to
"00."
Experts say that it's not exactly clear what problems non-compliant
computers will create over the next few years. They may make lots of
mistakes, such as paroling prisoners years early or sending Gen X'ers
pension checks many decades too soon. Humans may catch many of the
computers' mistakes, but most humans are too busy. That's why we have
computers keeping track of things and telling us what to do, like taking
expired foods and medicines off the shelf.
Most sources say it is costing businesses between 50› and $2 a line to
fix the
codes. It may not sound like much, but all told, it will add up to many
billions of dollars. Chase Manhattan Bank estimates that it will spend
$200
million to $250 million to fix its Y2K problems, and commercial banking
as
an industry may spend $9 billion or more, according to the Wall Street
Journal. The U.S. government will need to spend about $30 billion, says
the
Gartner Group, a market-research firm in Stamford, Connecticut.
Some organizations will decide to replace the millennium-unready systems
altogether, perhaps spending more at the outset but avoiding costly
problems
later. The University of Chicago Hospital System, for example, figured it
would cost $1.5 million to fix the Y2K problem on a patient-accounting
system that needed to be replaced anyhow, so it decided to buy a new
software system for $3 million to $7 million.
Bottom line: We're looking at a repair/replacement bill of up to $600
billion
worldwide by the end of 1999, according to the Gartner Group. That's more
than the gross national product of Canada.
Interconnectivity: Passing the Bug
The Year 2000 Problem affects not only computers (mainframes, minis,
and micros), but the myriad of microchips embedded in many of our
products, including airplanes, cars, microwave ovens, etc., points out
Y2K
authority John Whitehouse, president of ChangeWise, Inc., in
Jacksonville,
Florida. Furthermore, as he notes in his recent audiobook The Year 2000
Is
Coming: What Do I Do?, the year 2000 is a leap year, a circumstance that
also will have at least some consequences: Banks, for example, would fail
to
calculate one day's worth of interest (February 29), which is significant
when you are dealing with billions of dollars.
Y2K problems are sometimes deeply embedded in "legacy" programs,
which are the products of the old programming days. Some such programs
will begin automatically deleting data that is more than two years old,
warns
Whitehouse. The work you do on programs such as Excel may be at risk
unless you get upgraded software.
Even if you don't think you have a big problem with your own computers,
or if you solve your own Y2K problems, you will still have to deal with
countless other individuals, businesses, agencies, and governments who
may
not have solved the problem in their systems. Computers, businesses, and
governments are highly interconnected today: A problem anywhere has the
potential for global consequences, and there may be many, many problems
emerging as 2000 arrives.
Still, there is a potential bright side:
"For those who come to understand and accept the issues, for those who
take decisive action, this can be the opportunity of a lifetime," says
Whitehouse. "As we approach the most catastrophic event the modern
world has yet faced, proactive companies can gain a significant strategic
advantage while others fail. And knowledgeable investors can post
monumental gains while others lose."
Getting Rich from the Glitch
A disaster almost always presents profitable opportunities. The hundreds
of
billions of dollars spent on fixing the Y2K Problem will wind up in
somebody's pocket. One pocket could be yours. Expected Y2K winners
include:
Programmers and consultants. Anyone with the technical skills to
solve the problem is now in high demand. Y2K guru Peter de Jager
identifies a wide variety of consultants ready to provide services,
including planning consultants for tools assessment, testing
consultants,
contract service consultants to estimate the costs and plan and
implement the code redesign, legal consultants, and recovery
consultants.
Information providers, including publishers and Web site
developers. The Wall Street Journal, for example, recently sold
eight
pages of advertising in a special section devoted to companies
offering
"Year 2000 Solutions" (February 19, 1998). A variety of consultants
and subscription-based Y2K assistance can be found on de Jager's
Year 2000 Web site (www.year2000.com)
Investors. Wherever new businesses bloom, investors are sure to see
prospects for fast growth. Unfortunately, it's already late in the
game
to invest in Y2K companies: You'd be "buying high," and it's always
risky to chase headlines for ideas on short-term speculation. As
Wall
Street Journal writer John R. Dorfman warns about these so-called
story stocks, "That's an investment method that has often led
investors
to grief in the past."
Lawyers and litigators. Individuals and businesses stand to lose a
lot
of money and time because of the Y2K Problem; therefore, they will
want to sue anybody they consider responsible for creating the
problem. If, for example, your life insurance policy is canceled
because a computer thinks you're too old, you'll probably want to
sue
someone.
Worst-Case Scenarios: Chaos and Crashes
Pundits have warned of potential disasters IF the Year 2000 Problem is
not
fixed in time. It's not clear how seriously to take them, but these
possibilities
have been mentioned:
Food shortages may occur because stores will discard all products that
have
passed their freshness expiration dates.
Some patients may die because medicines and lifesaving devices are
unavailable. Drugs, like foods, have expiration dates and may be
discarded
upon the command of non-Y2K-compliant computers. Medical devices
such as heart defibrillators are programmed to cease functioning if the
date
for maintenance checks has passed.
Borrowers could default on loans and mortgages as computers add on a
century's worth of interest rates. Consumers may find they can't make
purchases because credit-card verification systems misinterpret
expiration
dates. Similarly, there may be a cash crisis as automatic teller machines
freeze up.
Stock markets could crash because investors fearing Y2K fiscal chaos may
take their money out of the markets_perhaps in November or December
1999_as Y2K impends. On the other hand, the crash might create a golden
opportunity for investors ready to jump into the market when others run
for
the hills.
Crime waves may occur as a general financial crisis creates economic
hardship and jailed criminals are mistakenly released. One prison has
already reportedly released criminals prematurely because parole dates
were
misinterpreted by computers.
Other problems and inconveniences could include elevators getting stuck
and airplanes being grounded, as the dates for maintenance checks appear
to
be missed and computers shut the systems down entirely. Date-sensitive
computer-controlled security systems may fail, causing factories to shut
and
bank vaults to lock up. Drivers' licenses could seem to have expired,
making
it hard for people to rent cars. Voter registration records may be
disrupted,
creating havoc for the 2000 U.S. presidential and congressional
elections.
What Should We Do?
To get started in solving your Y2K problems, John Whitehouse of
ChangeWise recommends building a "systems inventory." Analyze your
computer dependency_what do you use to get through the day, what
outside systems do you depend on? What alternative sources of goods and
services are there?
Similar procedures need to be done at home and at work; specifically,
Whitehouse suggests:
Individuals and family heads should check out personal items that contain
computer chips. Examples include heating and air conditioning systems,
home-security systems, telephone-answering machines, TVs, VCRs, cell
phones, cars. And of course, your home PC: The operating system itself
may not work.
Now test the devices. Enter 2000 in your VCR, or change the system date
on your PC (after backing up the data). Send letters to manufacturers to
see
if their systems are Y2K compliant. Record on inventories where you still
have risks, and develop a course of action, such as identifying
alternative
providers.
You should also check software such as Access 95, Excel, personal
schedulers, financial programs like Quicken or Money, communications
software, etc. And remember that you could experience problems with
outside services you use: the phone company, utilities, supermarkets,
banks,
gas stations, airports.
"Forget flying to see Grandma on January 1, 2000," warns Whitehouse.
"Two major airlines have already said they won't be flying." And the
Federal Aviation Administration has admitted it will be late in meeting
Y2K
compliance.
If you are an investor, your money is in places you can't control, so you
should inventory all your assets (equity, debt, and fixed tangible).
Check
with the companies to find out their Y2K status and record the results.
Perhaps less than half of U.S. companies have begun addressing the
problem, and movement is lagging even farther in other countries,
particularly Third World companies.
One worry is that there may be runs on banks when people fear the Y2K
impacts. Whitehouse goes so far as to suggest that investors begin
hedging
with fixed tangible assets: "Buy some gold and silver." Businesses should
set
up an organizational task force to address the issue, including managers
from each area of the enterprise. "Problem ownership" should lie with the
chief financial officer because of the many financial and legal
implications.
The task force should consider questions like cost, impacts on daily
activities, competitors' actions, opportunities, effects on stock prices,
etc.
The CFO might ask how the company will be affected, where the money
will come from to fix it, how cash flow will be impacted, and how
customers will be impacted. Sales managers might ask what new products
can be offered. Human-resources directors might ask whether new skills
will
be needed and whether the firm's best people will leave. The U.S.
government, for example, is already concerned about a "brain drain" of
technology experts leaving the Internal Revenue Service and the Pentagon.
Each division must then do a systems inventory, find alternatives to
systems
and programs that are not compliant, test those alternatives, and affirm
that
all trading partners are compliant. "This will enable you to succeed
where
your competitors will fail," reassures Whitehouse. De Jager and Bergeon,
authors of Managing 00, emphasize the need to test applications for their
ability to handle the year 2000, but recognize that time is running short
and
that workloads for the reprogrammers are already overwhelming. They
recommend giving priority to the applications that are most required for
your survival, followed by those that give you a competitive edge.
"Only you can determine whether you will allow yourself to be 'forced'
not
to test," write de Jager and Bergeon. "Forgoing testing is never
acceptable,
but in the real world, it happens."
Learning from Y2K
The lesson of the Year 2000 Problem is obvious: Most of the problems we
face in the present are the result of someone (or everyone) in the past
failing
to think about the future. Y2K is a problem basically because mainframe
computer programmers paid little attention to the long-term future. While
saving money by using two-digit codes to enter years instead of four
(computer memory was expensive in those days), either they never thought
their programs would still be in use by the year 2000 or they never
realized
that computers, unlike fuzzy-thinking humans, would literally interpret
years
as having only two digits.
We can smugly congratulate ourselves for being smarter than our
technologies, but meanwhile, technology is biting us back.
About the Author
Cynthia G. Wagner is managing editor of THE FUTURIST.
© 1998 World Future Society
<http://www.wfs.org/y2kwag.htm>
1
0
The Year 2000: Social Chaos or Social
Transformation?
by John L. Petersen, Margaret Wheatley, Myron
Kellner-Rogers
version in PDF (Adobe Acrobat) Download Acrobat
Editor's Note: This is a draft of an article scheduled for publication
in the October 1998 issue of THE FUTURIST. Due to the
time-sensitive nature of the material, it was posted here to create
greater awareness of the issue as well as elicit comments and questions
before final publication. Please send your comments and questions to the
authors at johnp(a)arlinst.org and the editors at
cwagner(a)wfs.org .
The Millenial sun will first rise over human civilization in the
independent republic of Kiribati, a group of some thirty low
lying coral islands in the Pacific Ocean that straddle the equator
and the International Date Line, halfway between Hawaii and
Australia. This long awaited sunrise marks the dawn of the year
2000, and quite possibly, the onset of unheralded disruptions
in life as we know it in many parts of the globe. Kiribati's 81,000
Micronesians may observe nothing different about this
dawn; they only received TV in 1989. However, for those who live in
a world that relies on satellites, air, rail and ground
transportation, manufacturing plants, electricity, heat, telephones,
or TV, when the calendar clicks from '99 to '00, we will
experience a true millennial shift. As the sun moves westward on
January 1, 2000, as the date shifts silently within millions
of computerized systems, we will begin to experience our
computer-dependent world in an entirely new way. We will finally
see the extent of the networked and interdependent processes we have
created. At the stroke of midnight, the new millenium
heralds the greatest challenge to modern society we have yet to face
as a planetary community. Whether we experience this as
chaos or social transformation will be influenced by what we do
immediately.
We are describing the year 2000 problem, known as Y2K (K signifying
1000.) Nicknamed at first "The Millennial Bug,"
increasing sensitivity to the magnitude of the impending crisis has
escalated it to "The Millennial Bomb." The problem
begins as a simple technical error. Large mainframe computers more
than ten years old were not programmed to handle a
four digit year. Sitting here now, on the threshold of the year
2000, it seems incomprehensible that computer programmers
and microchip designers didn't plan for it. But when these billions
of lines of computer code were being written, computer
memory was very expensive. Remember when a computer only had 16
kilobytes of RAM? To save storage space, most
programmers allocated only two digits to a year. 1993 is '93' in
data files, 1917 is '17.' These two-digit dates exist on millions
of files used as input to millions of applications. (The era in
which this code was written was described by one programming
veteran as "the Wild West." Programmers did whatever was required to
get a product up and working; no one even thought
about standards.)
The same thing happened in the production of microchips as recently
as three years ago. Microprocessors and other
integrated circuits are often just sophisticated calculators that
count and do math. They count many things: fractions of
seconds, days, inches, pounds, degrees, lumens, etc. Many chips that
had a time function designed into them were only
structured for this century. And when the date goes from '99 to '00
both they and the legacy software that has not been fixed
will think it is still the 20th century -- not 2000, but 1900.
Peter de Jager, who has been actively studying the problem and its
implications since 1991, explains the computer math
calculation: "I was born in 1955. If I ask the computer to calculate
how old I am today, it subtracts 55 from 98 and announces
that I'm 43. . . But what happens in the year 2000? The computer
will subtract 55 from 00 and will state that I am minus 55
years old. This error will affect any calculation that produces or
uses time spans. . . If you want to sort by date (e.g., 1965,
1905, 1966), the resulting sequence would be 1905, 1965, 1966.
However, if you add in a date record such as 2015, the
computer, which reads only the last two digits of the date, sees 05,
15, 65, 66 and sorts them incorrectly. These are just two
types of calculations that are going to produce garbage."1
The calculation problem explains why the computer system at Marks &
Spencer department store in London recently
destroyed tons of food during the process of doing a long term
forecast. The computer read 2002 as 1902. Instead of four more
years of shelf life, the computer calculated that this food was
ninety-six years old. It ordered it thrown out.2
A similar problem happened recently in the U.S. at the warehouse of
a freeze dried food manufacturer. But Y2K is not about
wasting good food. Date calculations affect millions more systems
than those that deal with inventories, interest rates, or
insurance policies. Every major aspect of our modern infrastructure
has systems and equipment that rely on such
calculations to perform their functions. We are dependent on
computerized systems that contain date functions to effectively
manage defense, transportation, power generation, manufacturing,
telecommunications, finance, government, education,
healthcare. The list is longer, but the picture is clear. We have
created a world whose efficient functioning in all but the
poorest and remotest areas is dependent on computers. It doesn't
matter whether you personally use a computer, or that most
people around the world don't even have telephones. The world's
economic and political infrastructures rely on computers.
And not isolated computers. We have created dense networks of
reliance around the globe. We are networked together for
economic and political purposes. Whatever happens in one part of the
network has an impact on other parts of the network.
We have created not only a computer-dependent society, but an
interdependent planet.
We already have frequent experiences with how fragile these systems
are, and how failure cascades through a networked
system. While each of these systems relies on millions of lines of
code that detail the required processing, they handle their
routines in serial fashion. Any next step depends on the preceding
step. This serial nature makes systems, no matter their
size, vulnerable to even the slightest problem anywhere in the
system. In 1990, ATT's long distance system experienced
repeated failures. At that time, it took two million lines of
computer code to keep the system operational. But these millions of
lines of code were brought down by just three lines of faulty code.
And these systems are lean; redundancies are eliminated in the name
of efficiency. This leanness also makes the system
highly vulnerable. In May of this year, 90% of all pagers in the
U.S. crashed for a day or longer because of the failure of one
satellite. Late in 1997, the Internet could not deliver email to the
appropriate addresses because bad information from their
one and only central source corrupted their servers.
Compounding the fragility of these systems is the fact that we can't
see the extent of our interconnectedness. The networks
that make modern life possible are masked by the technology. We only
see the interdependencies when the relationships are
disrupted -- when a problem develops elsewhere and we notice that we
too are having problems. When Asian markets failed
last year, most U.S. businesses denied it would have much of an
impact on our economy. Only recently have we felt the extent
to which Asian economic woes affect us directly. Failure in one part
of a system always exposes the levels of
interconnectedness that otherwise go unnoticed—we suddenly see how
our fates are linked together. We see how much we
are participating with one another, sustaining one another.
Modern business is completely reliant on networks. Companies have
vendors, suppliers, customers, outsourcers (all, of
course, managed by computerized data bases.) For Y2K, these highly
networked ways of doing business create a terrifying
scenario. The networks mean that no one system can protect itself
from Y2K failures by just attending to its own internal
systems. General Motors, which has been working with extraordinary
focus and diligence to bring their manufacturing plants
up to Year 2000 compliance, (based on their assessment that they
were facing catastrophe,) has 100,000 suppliers worldwide.
Bringing their internal systems into compliance seems nearly
impossible, but what then do they do with all those vendors who
supply parts? GM experiences production stoppages whenever one key
supplier goes on strike. What is the potential number
of delays and shutdowns possible among 100,000 suppliers?
The nature of systems and our history with them paints a chilling
picture of the Year 2000. We do not know the extent of the
failures, or how we will be affected by them. But we do know with
great certainty that as computers around the globe respond
or fail when their calendars record 2000, we will see clearly the
extent of our interdependence. We will see the ways in which
we have woven the modern world together through our technology.
What, me worry?
Until quite recently, it's been difficult to interest most people in
the Year 2000 problem. Those who are publicizing the
problem (the Worldwide Web is the source of the most extensive
information on Y2K,) exclaim about the general lack of
awareness, or even the deliberate blindness that greets them. In our
own investigation among many varieties of organizations
and citizens, we've noted two general categories of response. In the
first category, people acknowledge the problem but view it
as restricted to a small number of businesses, or a limited number
of consequences. People believe that Y2K affects only a few
industries—primarily finance and insurance—seemingly because they
deal with dates on policies and accounts. Others note
that their organization is affected by Y2K, but still view it as a
well-circumscribed issue that is being addressed by their
information technology department. What's common to these comments
is that people hold Y2K as a narrowly-focused,
bounded problem. They seem oblivious to the networks in which they
participate, or to the systems and interconnections of
modern life.
The second category of reactions reveals the great collective faith
in technology and science. People describe Y2K as a
technical problem, and then enthusiastically state that human
ingenuity and genius always finds a way to solve these type of
problems. Ecologist David Orr has noted that one of the fundamental
beliefs of our time is that technology can be trusted to
solve any problem it creates.3 If a software engineer goes on TV
claiming to have created a program that can correct all
systems, he is believed. After all, he's just what we've been
expecting.
And then there is the uniqueness of the Year 2000 problem. At no
other time in history have we been forced to deal with a
deadline that is absolutely non-negotiable. In the past, we could
always hope for a last minute deal, or rely on round-the-clock
bargaining, or pray for an eleventh hour savior. We have never had
to stare into the future knowing the precise date when the
crisis would materialize. In a bizarre fashion, the inevitability of
this confrontation seems to add to people's denial of it. They
know the date when the extent of the problem will surface, and
choose not to worry about it until then.
However, this denial is quickly dissipating. Information on Y2K is
expanding exponentially, matched by an escalation in
adjectives used to describe it. More public figures are speaking
out. This is critically important. With each calendar tick of
this time, alternatives diminish and potential problems grow. We
must develop strategies for preparing ourselves at all levels
to deal with whatever Y2K presents to us with the millennium dawn.
What we know about Y2K
a technological problem that cannot be solved by technology
the first-ever, non-negotiable deadline
a systemic crisis that no one can solve alone
a crisis that transcends boundaries and hierarchies
an opportunity to evoke greater capacity from individuals and
organizations
an opportunity to simplify and redesign major systems
Figure 1
The Y2K problem, really
We'd like to describe in greater detail the extent of Y2K. As a
global network of interrelated consequences, it begins at the
center with the technical problem, legacy computer codes and
embedded microchips. (see Figure One) For the last thirty
years thousands of programmers have been writing billions of lines
of software code for the computers on which the world's
economy and society now depend. Y2K reporter Ed Meagher describes
"old, undocumented code written in over 2500 different
computer languages and executed on thousands of different hardware
platforms being controlled by hundreds of different
operating systems . . . [that generate] further complexity in the
form of billions of six character date fields stored in millions
of databases that are used in calculations."4 The Gartner Group, a
computer-industry research group, estimates that
globally, 180 billion lines of software code will have to be
screened.5 Peter de Jager notes that it is not unusual for a company
to have more than 100,000,000 lines of code--the IRS, for instance,
has at least eighty million lines. The Social Security
Administration began working on its thirty million lines of code in
1991. After five years of work, in June, 1996, four
hundred programmers had fixed only six million lines. The IRS has
88,000 programs on 80 mainframe computers to debug.
By the end of last year they had cleaned up 2,000 programs.6 Capers
Jones, head of Software Productivity Research, a firm
that tracks programmer productivity, estimates that finding, fixing
and testing all Y2K-affected software would require over
700,000 person-years.7 Programmers have been brought out of
retirement and are receiving extraordinary wages and
benefits to stick with this problem, but we are out of time. There
aren't nearly enough programmers nor hours remaining
before January 1, 2000.
Also at the center of this technical time bomb are the embedded
microprocessors. There are somewhat over a billion of these
hardware chips located in systems worldwide. They sustain the
world's manufacturing and engineering base. They exist in
traffic lights, elevators, water, gas, and electricity control
systems. They're in medical equipment and military and navigation
systems. America's air traffic control system is dependent upon
them. They're located in the track beds of railroad systems
and in the satellites that circle the earth. Global
telecommunications are heavily dependent on them. Modern cars contain
about two dozen microprocessors. The average American comes in
contact with seventy microprocessors before noon every
day. Many of these chips aren't date sensitive, but a great number
are, and engineers looking at long ago installed systems
don't know for sure which is which. To complicate things further,
not all chips behave the same. Recent tests have shown that
two chips of the same model installed in two different computers but
performing the same function are not equally sensitive to
the year-end problem. One shuts down and the other doesn't.
It is impossible to locate all of these chips in the remaining
months, nor can we replace all those that are identified. Those
more than three years old are obsolete and are probably not
available in the marketplace. The solution in those cases is to
redesign and remanufacture that part of the system -- which often
makes starting over with new equipment the best option.
That is why some companies are junking their computer systems and
spending millions, even hundreds of millions, to replace
everything. It at least ensures that their internal systems work.
At issue is time, people, money, and the nature of systems. These
technical problems are exacerbated by government and
business leaders who haven't yet fully understood the potential
significance of this issue for their own companies, to say
nothing of the greater economic implications. The U.S. leads all
other developed nations in addressing this issue, minimally
by six to nine months. Yet in a recent survey of American corporate
chief information officers, 70% of them expressed the
belief that even their companies would not be completely prepared
for Y2K. Additionally, 50% of them acknowledged that they
would not fly during January 2000. If America is the global leader
in Y2K efforts, these CIO comments are indeed sobering.
The economic impacts for the global economy are enormous and
unknown. The Gartner Group projects that the total cost of
dealing with Y2K worldwide will be somewhere between $300 billion to
$600 billion -- and these are only direct costs
associated with trying to remedy the problem. (These estimates keep
rising every quarter now.) The Office of Management
and Budget (OMB), in a recently released Quarterly Report, estimated
total government Y2K expense at $3.9 billion. This
figure was based only on federal agency estimates; the OMB warned
that this estimate might be as much as 90% too low
considering the increasing labor shortage and expected growing
remediation costs as January 1, 2000 looms nearer. And in
June of this year, it was announced that federal agencies had
already spent five billion dollars. Of twenty-four agencies,
fifteen reported being behind schedule.
These numbers don't consider the loss of output caused by diverting
resources to forestall this crisis. In more and more
businesses, expenditures for R&D and modernization are being
diverted to Y2K budgets. Business Week in March of 1998
estimated that the Year 2000 economic damage alone would be $119
billion. When potential lawsuits and secondary effects
are added to this -- people suing over everything from stalled
elevators to malfunctioning nuclear power plants -- the cost
easily could be over $1 trillion.
But these problems and estimates don't begin to account for the
potential impact of Y2K. The larger significance of this bomb
becomes apparent when we consider the next circle of the global
network-- the organizational relationships that technology
makes possible.
Who works with whom?
The global economy is dependent upon computers both directly and
indirectly. Whether it's your PC at home, the workstation
on a local area network, or the GPS or mobile telephone that you
carry, all are integral parts of larger networks where
computers are directly connected together. As we've learned, failure
in a single component can crash the whole system; that
system could be an automobile, a train, an aircraft, an electric
power plant, a bank, a government agency, a stock exchange, an
international telephone system, the air traffic control system. If
every possible date-sensitive hardware and software bug
hasn't been fixed in a larger system, just one programming glitch or
one isolated chip potentially can bring down the whole
thing.
While there isn't enough time or technical people to solve the Y2K
problem before the end of next year, we might hope that
critical aspects of our infrastructure are tackling this problem
with extreme diligence. But this isn't true. America's electric
power industry is in danger of massive failures, as described in
Business Week's February '98 cover story on Y2K. They
report that "electric utilities are only now becoming aware that
programmable controllers -- which have replaced mechanical
relays in virtually all electricity-generating plants and control
rooms -- may behave badly or even freeze up when 2000
arrives. Many utilities are just getting a handle on the problem."
It's not only nuclear power plants that are the source of
concern, although problems there are scary enough. In one Year 2000
test, notes Jared S.Wermiel, leader of the Y2K effort
at the Nuclear Regulatory Commission, the security computer at a
nuclear power plant failed by opening vital areas that are
normally locked. Given the complexity and the need to test, "it
wouldn't surprise me if certain plants find that they are not
Year 2000-ready and have to shut down."8
Other electric utility analysts paint a bleaker picture. Rick
Cowles, who reports on the electric utility industry, said at the
end of February: "Not one electric company [that he had talked to]
has started a serious remediation effort on its embedded
controls. Not one. Yes, there's been some testing going on, and a
few pilot projects here and there, but for the most part it is
still business-as-usual, as if there were 97 months to go, not 97
weeks.9 After attending one industry trade show, Cowle
stated that, "Based on what I learned at DistribuTECH '98, I am
convinced there is a 100% chance that a major portion of the
domestic electrical infrastructure will be lost as a result of the
Year 2000 computer and embedded systems problem. The
industry is fiddling whilst the infrastructure burns." 10
The Federal Aviation Administration is also very vulnerable but
quite optimistic. "We're on one hand working to get those
computers Year 2000 compliant, but at the same time we're working on
replacing those computers," said Paul Takemoto, a
spokesman for the FAA in early '98. At the twenty Air Route Traffic
Control Centers, there is a host computer and a backup
system. All forty of these machines --mid-'80s vintage IBM 3083
mainframes--are affected. And then there are the satellites
with embedded chips, individual systems in each airplane, and air
traffic control systems around the globe. Lufthansa already
has announced it will not fly its aircraft during the first days of
2000.
Who else is affected?
But the interdependency problem extends far beyond single
businesses, or even entire industries. Indirect relationships
extend like tentacles into many other networks, creating the
potential for massive disruptions of service.
Let's hope that your work organization spends a great deal of money
and time to get its entire information system compliant.
You know yours is going to function. But on the second of January
2000 the phone calls start. It's your banker. "There's
been a problem," he says. They've lost access to your account
information and until they solve the problem and get the backup
loaded on the new system, they are unable to process your payroll.
"We don't have any idea how long it will take," the
president says.
Then someone tells you that on the news there's a story that that
the whole IRS is down and that they can neither accept nor
process tax information. Social Security, Federal Housing,
Welfare—none of these agencies are capable of issuing checks
for the foreseeable future. Major airlines aren't flying, waiting to
see if there is still integrity in the air traffic control
system. And manufacturing across the country is screeching to a halt
because of failures in their supply chain. (After years
of developing just in time (JIT) systems, there is no inventory on
hand—suppliers have been required to deliver parts as
needed. There is no slack in these systems to tolerate even minor
delivery problems.) Ground and rail transport have been
disrupted, and food shortages appear within three to six days in
major metropolises. Hospitals, dealing with the failure of
medical equipment, and the loss of shipments of medicine, are forced
to deny non-essential treatment, and in some cases are
providing essential care in pre-technical ways.
It's a rolling wave of interdependent failures. And it reaches
across the country and the world to touch people who, in most
cases, didn't know they were linked to others. Depending on what
systems fail, very few but strategically placed failures would
initiate a major economic cascade. Just problems with power
companies and phone systems alone would cause real havoc.
(This spring, a problem in ATT rendered all credit card machines
useless for a day. How much revenue was lost by
businesses?) If only twenty percent of businesses and government
agencies crash at the same time, major failures would
ensue.
In an interdependent system, solving most of the problem is no
solution. As Y2K reporter Ed Meagher describes:
It is not enough to solve simply "most of these problems." The
integration of these systems requires that we
solve virtually all of them. Our ability as an economy and as a
society to deal with disruptions and breakdowns
in our critical systems is minuscule. Our worst case scenarios
have never envisioned multiple, parallel
systemic failures. Just in time inventory has led to just in
time provisioning. Costs have been squeezed out of
all of our critical infrastructure systems repeatedly over time
based on the ubiquity and reliability of these
integrated systems. The human factor, found costly, slow, and
less reliable has been purged over time from our
systems. Single, simple failures can be dealt with; complex,
multiple failures have been considered too remote
a possibility and therefore too expensive to plan for. 11
The city of New York began to understand this last September. The
governor of New York State banned all nonessential IT
projects to minimize the disruption caused by the year 2000 bomb
after reading a detailed report that forecasts the
millennium will throw New York City into chaos, with power supplies,
schools, hospitals, transport, and the finance sector
likely to suffer severe disruption. Compounding the city's Y2K risks
is the recent departure of the head of its year 2000
project to a job in the private sector.12
But of course the anticipated problems extend far beyond U.S.
shores. In February, the Bangkok Post reported that Phillip
Dodd, a Unysis Y2K expert, expects that upward of 70% of the
businesses in Asia will fail outright or experience severe
hardship because of Y2K. The Central Intelligence Agency supports
this with their own analysis: "We're concerned about
the potential disruption of power grids, telecommunications and
banking services, among other possible fallout, especially in
countries already torn by political tensions."13
A growing number of assessments of this kind have led Dr. Edward
Yardeni, the chief economist of Deutsche Morgan
Grenfell, to keep raising the probability of a deep global recession
in 2000-2001 as the result of Y2K. His present estimate of
the potential for such a recession now hovers at about 70%, up from
40% at the end of 1997.14
How might we respond?
(To be continued...)
<http://www.wfs.org/year2k.htm>
1
0
How might we respond?
As individuals, nations, and as a global society, do we have a
choice as to how we might respond to Y2K, however problems
materialize? The question of alternative social responses lies at
the outer edges of the interlocking circles of technology and
system relationships. At present, potential societal reactions
receive almost no attention. But we firmly believe that it is the
central most important place to focus public attention and
individual ingenuity. Y2K is a technology-induced problem, but it
will not and cannot be solved by technology. It creates societal
problems that can only be solved by humans. We must begin
to address potential social responses. We need to be engaged in this
discourse within our organizations, our communities,
and across the traditional boundaries of competition and national
borders. Without such planning, we will slide into the Year
2000 as hapless victims of our technology.
Even where there is some recognition of the potential disruptions or
chaos that Y2K might create, there's a powerful dynamic
of secrecy preventing us from engaging in these conversations.
Leaders don't want to panic their citizens. Employees don't
want to panic their bosses. Corporations don't want to panic
investors. Lawyers don't want their clients to confess to anything.
But as psychotherapist and information systems consultant Dr.
Douglass Carmichael has written:
Those who want to hush the problem ("Don't talk about it,
people will panic", and "We don't know for sure.")
are having three effects. First, they are preventing a more
rigorous investigation of the extent of the problem.
Second, they are slowing down the awareness of the intensity of
the problem as currently understood and the
urgency of the need for solutions, given the current assessment
of the risks. Third, they are making almost
certain a higher degree of ultimate panic, in anger, under
conditions of shock.15
Haven't we yet learned the consequences of secrecy? When people are
kept in the dark, or fed misleading information, their
confidence in leaders quickly erodes. In the absence of real
information, people fill the information vacuum with rumors and
fear. And whenever we feel excluded, we have no choice but to
withdraw and focus on self-protective measures. As the veil of
secrecy thickens, the capacity for public discourse and shared
participation in solution-finding disappears. People no longer
believe anything or anybody—we become unavailable, distrusting and
focused only on self-preservation. Our history with the
problems created by secrecy has led CEO Norman Augustine to advise
leaders in crisis to: "Tell the truth and tell it fast."16
Behaviors induced by secrecy are not the only human responses
available. Time and again we observe a much more positive
human response during times of crisis. When an earthquake strikes,
or a bomb goes off, or a flood or fire destroys a
community, people respond with astonishing capacity and
effectiveness. They use any available materials to save and rescue,
they perform acts of pure altruism, they open their homes to one
another, they finally learn who their neighbors are. We've
interviewed many people who participated in the aftermath of a
disaster, and as they report on their experiences, it is clear
that their participation changed their lives. They discovered new
capacities in themselves and in their communities. They
exceeded all expectations. They were surrounded by feats of caring
and courage. They contributed to getting systems restored
with a speed that defied all estimates.
When chaos strikes, there's simply no time for secrecy; leaders have
no choice but to engage every willing soul. And the field
for improvisation is wide open—no emergency preparedness drill ever
prepares people for what they actually end up doing.
Individual initiative and involvement are essential. Yet
surprisingly, in the midst of conditions of devastation and fear, people
report how good they feel about themselves and their colleagues.
These crisis experiences are memorable because the best of
us becomes visible and available. We've observed this in America,
and in Bangladesh, where the poorest of the poor
responded to the needs of their most destitute neighbors rather than
accepting relief for themselves.
What we know about people in crisis
shared purpose and meaning brings people together
people display unparalleled levels of creativity and
resourcefulness
people want to help others - individual agendas fade
immediately
people learn instantly and respond at lightning speed
the more information people get, the smarter their responses
leadership behaviors (not roles) appear everywhere, as needed
people experiment constantly to find what works
Who might we become?
As we sit staring into the unknown dimensions of a global crisis
whose timing is non-negotiable, what responses are available
to us as a human community? An effective way to explore this
question is to develop potential scenarios of possible social
behaviors. Scenario planning is an increasingly accepted technique
for identifying the spectrum of possible futures that are
most important to an organization or society. In selecting among
many possible futures, it is most useful to look at those that
account for the greatest uncertainty and the greatest impact. For
Y2K, David Isenberg, (a former AT&T telecommunications
expert, now at Isen.Com) has identified the two variables which seem
obvious – the range of technical failures from isolated to
multiple, and the potential social responses, from chaos to
coherence. Both variables are critical and uncertain and are
arrayed as a pair of crossing axes, as shown in Figure 2. When
displayed in this way, four different general futures emerge.
In the upper left quadrant, if technical failures are isolated and
society doesn't respond to those, nothing of significance will
happen. Isenberg labels this the "Official Future" because it
reflects present behavior on the part of leaders and
organizations.
Figure 2.
The upper right quadrant describes a time where technical failures
are still isolated, but the public responds to these with
panic, perhaps fanned by the media or by stonewalling leaders.
Termed "A Whiff of Smoke," the situation is analogous to the
panic caused in a theater by someone who smells smoke and spreads an
alarm, even though it is discovered that there is no
fire. This world could evolve from a press report that fans the
flames of panic over what starts as a minor credit card glitch
(for example), and, fueled by rumors turns nothing into a major
social problem with runs on banks, etc.
The lower quadrants describe far more negative scenarios.
"Millennial Apocalypse" presumes large-scale technical failure
coupled with social breakdown as the organizational, political and
economic systems come apart. The lower left quadrant,
"Human Spirit" posits a society that, in the face of clear
adversity, calls on each of us to collaborate in solving the problems of
breakdown.
Since essentially we are out of time and resources for preventing
widespread Y2K failures, a growing number of observers
believe that the only plausible future scenarios worth contemplating
are those in the lower half of the matrix. The major
question before us is how will society respond to what is almost
certain to be widespread and cascading technological
failures?
Figure 3.
Figure 3 above shows a possible natural evolution of the problem.
Early, perhaps even in '98, the press could start something
bad long before it was clear how serious the problem was and how
society would react to it. There could be an interim scenario
where a serious technical problem turned into a major social problem
from lack of adaquate positive social response. This
"Small Theatre Fire" future could be the kind of situation where
people overreact and trample themselves trying to get to the
exits from a small fire that is routinely extinguished.
If the technical situation is bad, a somewhat more ominous situation
could evolve where government, exerting no clear positive
leadership and seeing no alternative to chaos, cracks down so as not
to lose control (A common historical response to social
chaos has been for the government to intervene in non-democratic,
sometimes brutal fashion. "Techno-fascism" is a plausible
scenario -- governments and large corporations would intervene to
try to contain the damage -- rather than build for the
future. This dictatorial approach would be accompanied by secrecy
about the real extent of the problem and ultimately fueled
by the cries of distress, prior to 2000, from a society that has
realized its major systems are about to fail and that it is too late
to do anything about it.
Collaboration is our only choice
Obviously, the scenario worth working towards is "Human Spirit," a
world where the best of human creativity is enabled and
the highest common good becomes the objective. In this world we all
work together, developing a very broad, powerful,
synergistic, self-organizing force focused on determining what
humanity should be doing in the next 18 months to plan for
the aftermath of the down stroke of Y2K. This requires that we
understand Y2K not as a technical problem, but as a systemic,
worldwide event that can only be resolved by new social
relationships. All of us need to become very wise and very engaged
very fast and develop entirely new processes for working together.
Systems issues cannot be resolved by hiding behind
traditional boundaries or by clinging to competitive strategies.
Systems require collaboration and the dissolution of existing
boundaries. Our only hope for healthy responses to Y2K-induced
failures is to participate together in new collaborative
relationships.
At present, individuals and organizations are being encouraged to
protect themselves, to focus on solving "their" problem. In
a system's world, this is insane. The problems are not isolated,
therefore no isolated responses will work. The longer we
pursue strategies for individual survival, the less time we have to
create any viable, systemic solutions. None of the
boundaries we've created across industries, organizations,
communities, or nation states give us any protection in the face of
Y2K. We must stop the messages of fragmentation now and focus
resources and leadership on figuring out how to engage
everyone, at all levels, in all systems.
As threatening as Y2K is, it also gives us the unparalleled
opportunity to figure out new and simplified ways of working
together. GM's chief information officer, Ralph Szygenda, has said
that Y2K is the cruelest trick ever played on us by
technology, but that it also represents a great opportunity for
change.17 It demands that we let go of traditional boundaries
and roles in the pursuit of new, streamlined systems, ones that are
less complex than the entangled ones that have evolved over
the past thirty years.
There's an interesting lesson here about involvement that comes from
the Oklahoma City bombing in 1995. Just a few weeks
prior the bombing, agencies from all over the city conducted an
emergency preparedness drill as part of normal civil defense
practice. They did not prepare themselves for a bomb blast, but they
did work together on other disaster scenarios. The most
significant accomplishment of the drill was to create an invisible
infrastructure of trusting relationships. When the bomb
went off, that infrastructure displayed itself as an essential
resource--people could work together easily, even in the face of
horror. Many lives were saved and systems were restored at an
unprecedented rate because people from all over the
community worked together so well.
But there's more to this story. One significant player had been
excluded from the preparedness drill, and that was the FBI. No
one thought they'd ever be involved in a Federal matter. To this
day, people in Oklahoma City speak resentfully of the manner
in which the FBI came in, pushed them aside, and offered no
explanations for their behavior. In the absence of trusting
relationships, some form of techno-fascism is the only recourse.
Elizabeth Dole, as president of the American Red Cross
commented: "The midst of a disaster is the poorest possible time to
establish new relationships and to introduce ourselves to
new organizations . . . . When you have taken the time to build
rapport, then you can make a call at 2 a.m., when the river's
rising and expect to launch a well-planned, smoothly conducted
response."18
The scenario of communities and organizations working together in
new ways demands a very different and immediate
response not only from leaders but from each of us. We'd like to
describe a number of actions that need to begin immediately.
What leaders must do
We urge leaders to give up trying to carry this burden alone, or
trying to reestablish a world that is irretrievably broken. We
need leaders to be catalysts for the emergence of a new world. They
cannot lead us through this in traditional ways. No leader
or senior team can determine what needs to be done. No single group
can assess the complexity of these systems and where
the consequences of failure might be felt. The unknown but complex
implications of Y2K demand that leaders support
unparalleled levels of participation—more broad-based and inclusive
than ever imagined. If we are to go through this crisis
together rather than bunkered down and focused only on individual
security, leaders must begin right now to convene us.
The first work of leaders then, is to create the resources for
groups to come together in conversations that will reveal the
interconnections. Boundaries need to dissolve. Hierarchies are
irrelevant. Courageous leaders will understand that they
must surrender the illusion of control and seek solutions from the
great networks and communities within their domain.
They must move past the dynamics of competition and support us in
developing society-wide solutions.
Leaders can encourage us to seek out those we have excluded and
insist that they be invited in to all deliberations. Leaders
can provide the time and resources for people to assess what is
critical for the organization or community to sustain—its
mission, its functions, its relationships, its unique qualities.
>From these conversations and plans, we will learn to know one
another and to know what we value. In sudden crises, people
instantly share a sense of meaning and purpose. For Y2K, we have
at least a little lead time to develop a cohesive sense of what
might happen and how we hope to respond.
Secrecy must be replaced by full and frequent disclosure of
information. The only way to prevent driving people into isolated
and self-preserving behaviors is to entrust us with difficult, even
fearsome information, and then to insist that we work
together.
No leader anywhere can ignore these needs or delay their
implementation.
What communities must do
Communities need to assess where they are most vulnerable and
develop contingency plans. Such assessment and planning
needs to occur not just within individual locales, but also in
geographic regions. These activities can be initiated by existing
community networks, for example, civic organizations such as Lions
or Rotary, Council of Churches, Chamber of Commerce,
the United Way. But new and expansive alliances are required, so
planning activities need quickly to extend beyond traditional
borders. We envision residents of all ages and experience coming
together to do these audits and planning. Within each
community and region, assessments and contingency plans need to be
in place for disruptions or loss of service for:
all utilities
electricity, water, gas, phones
food supplies
public safety
healthcare
government payments to individuals and organizations
residents most at risk, e.g. the elderly, those requiring
medications
What organizations must do
Organizations need to move Y2K from the domain of technology experts
into the entire organization. Everyone in the
organization has something important to contribute to this work.
Assessment and contingency plans need to focus on:
how the organization will perform essential tasks in the
absence of present systems
how the organization will respond to failures or slowdowns in
information and supplies
what simplified systems can be developed now to replace
existing ones
relationships with suppliers, customers, clients,
communities—how we will work together
developing systems to ensure open and full access to
information
The trust and loyalty developed through these strategic
conversations and joint planning will pay enormous dividends later on,
even if projected breakdowns don't materialize. Corporate and
community experience with scenario planning has taught a
important principle: We don't need to be able to predict the future
in order to be well-prepared for it. In developing scenarios,
information is sought from all over. People think together about its
implications and thus become smarter as individuals and
as teams. Whatever future then materializes is dealt with by people
who are more intelligent and who know how to work well
together.
And such planning needs to occur at the level of entire industries.
Strained relationships engendered by competitive
pressures need to be put aside so that people can collaboratively
search for ways to sustain the very fabric of their industry.
How will power grids be maintained nationally? Or national systems
of food transport? How will supply chains for
manufacturing in any industry be sustained?
What you can do
We urge you to get involved in Y2K, wherever you are, and in
whatever organizations you participate. We can't leave this
issue to others to solve for us, nor can we wait for anyone else to
assert leadership. You can begin to ask questions; you can
begin to convene groups of interested friends and colleagues; you
can engage local and business leaders; you can educate
yourself and others (start with www.Year2000.com and www.Y2K.com for
up-to-date information and resources.) This is our
problem. And as an African proverb reminds us, if you think you're
too small to make a difference, try going to bed with a
mosquito in the room.
The crisis is now
There is no time left to waste. Every week decreases our options. At
the mid-May meeting of leaders from the G8, a
communiqué was issued that expressed their shared sensitivity to the
"vast implications" of Y2K, particularly in "defense,
transport, telecommunications, financial services, energy, and
environmental sectors," and the interdependencies among
these sectors. (Strangely, their list excludes from concern
government systems, manufacturing and distribution systems.)
They vowed to "take further urgent action" and to work with one
another, and relevant organizations and agencies. But no
budget was established, and no specific activities were announced.
Such behavior—the issuing of a communiqué, the promises
of collaboration and further investigation—are all too common in our
late 20th century political landscape.
But the earth continues to circle the sun, and the calendar
relentlessly progresses toward the Year 2000. If we cannot
immediately change from rhetoric to action, from politics to
participation, if we do not immediately turn to one another and
work together for the common good, we will stand fearfully in that
new dawn and suffer consequences that might well have
been avoided if we had learned to stand together now.
Copyright 1998 John L. Petersen, Margaret Wheatley, Myron Kellner-Rogers
(posted with permission)
John L. Petersen is president of The Arlington Institute, a
Washington DC area research institute. He is a futurist who
specializes in thinking about the long range security implications
of global change. He is author of the award winning book,
The Road to 2015: Profiles of the Future and his latest book is Out
of the Blue - Wild Cards and Other Big Future Surprises,
which deals with potential events such as Y2K. He can be reached at
703-243-7070 or johnp(a)arlinst.org
Margaret Wheatley and Myron Kellner-Rogers are authors and
consultants to business. A Simpler Way, their book on
organizational design was published in 1997. Dr. Wheatley's previous
book, Leadership & the New Science, was recently
named one of the 10 best management books ever, and it also was
voted best management book in 1992 in Industry Week, and
again in 1995 by a syndicated management columnist. Their consulting
work takes them these days to Brazil, Mexico, South
Africa, Australasia and Europe. In the States, they've worked with a
very wide array of organizations.
1 See Peter de Jager, www.year2000.com
2 United Airlines, Flight Talk Network, February 1998
3 "Slow Knowledge," _______1997.
4 See "The Complexity Factor" by Ed Meagher at
www.year2000.com/archive/NFcomplexity.html
5 "Industry Wakes Up to the Year 2000 Menace," Fortune, April 27, 1998
6 The Washington Post, "If Computer Geeks Desert, IRS Codes Will Be
ciphers," December 24, 1997
7 Business Week, March 2, 1998
8 www.igs.net/~tonyc/y2kbusweek.html
9 "Industry Gridlock," Rick Cowles, February 27, 1998,
www.y2ktimebomb.com/PP/RC/rc9808.htm
10 Cowles, January 23, 1998, ibid www site
11 The Complexity Factor, Ed Meagher
12 www.computerweekly.co.uk/news/ll_9_97
13 REUTER "CIA:Year 2000 to hit basic services: Agency warns that many
nations aren't ready for disruption," Jim Wolf, May 7, 1998
14 see http://www.Yardeni.com
15 www.tmn.com/~doug
16 "Managing the Crisis You Tried to Prevent," Harvard Business Review,
Nov-Dec. 1995, 158.
17 In Fortune, April 27, 1998
18 quoted in "Managing the Crisis You Tried to Prevent," Norman
Augustine, Harvard Business Review, Nov-Dec 1995, 151.
To WFS Home
<http://www.wfs.org/year2k.htm>
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Navy fights new hack method
http://www.abcnews.com/sections/tech/CNET/cnet_navyhack980925.html
Tim Clark
CNET NEWS.COM
Hackers are banding together across the globe to mount low-visibility
attacks in an effort to sneak under the radar of security specialists and
intrusion detection software, a U.S. Navy network security team said today.
Coordinated attacks from up to 15 different locations on several continents
have been detected, and Navy experts believe that the attackers garner
information by probing Navy Web sites and then share it among themselves.
"These new patterns are really hard to decipher--you need expert forensics
to get the smoking gun," said Stephen Northcutt, head of the Shadow
intrusion detection team at the Naval Surface Warfare Center. "To know
what's really happening will require law enforcement to get hold of the
hackers' code so we can disassemble it."
The new method involves sending as few as two suspicious probes per hour to
a host computer, a level of interest that usually won't be detected by
standard countermeasures. But by pooling information learned from those
probes, hackers can garner considerable knowledge about a site.
Northcutt said the new technique for attacks was discovered only this month
and has been detected at Defense Department facilities as well as in
private sector sites, including some outside the United States.
The Shadow group has posted descriptions of the attacks and
countermeasures, and the information has been forwarded to CERT, which
investigates security attacks.
"Most intrusion detection systems have a threshold, a radar. These attacks
are intentionally sliding under that threshold so normal intrusion
detection tools will not detect them," said Tim Aldrich, principal analyst
at the Navy facility.
The Shadow team said that although the new method is harder to detect, it
should not affect sites that are well-secured. But the technique puts sites
with weak security at greater risk.
The attacks do not involve a new hacker tool or new kind of attack, but
rather represent a low-visibility technique for perpetrating attacks. For
example, one coordinated attack that involved at least 14 locations simply
probed a Web site for security weaknesses without mounting a break-in.
The Shadow Intrusion Detection team said it cannot determine how many
people might be involved in the attacks--hackers frequently use many
different machines to launch their attacks. But the number of individuals
involved is less important than the technique itself, Northcutt said.
The technique could be used to scan or mount attacks from more than 100
Internet addresses. The security experts also suggested that makers of
commercial intrusion detection software need to counter the new method.
"This stealthy probing enables large amounts of parallel firepower, which
means many attack attempts [from many sites] over a short time frame," said
a note distributed by the System Administration Networking and Security
(SANS) Institute.
Going public with a news of new hacker techniques is somewhat unusual in
the secretive network security community, which often fears that
publicizing attacks before countermeasures are known will tip off attackers
to vulnerabilities.
"We went public in hopes of raising awareness," Northcutt said. "You're
only going to be able to find stealthy stuff by looking for stealthy stuff."
But before publicizing the new hacker technique, he added, the Shadow team
had checked to be certain it would not jeopardize any official actions
against the attackers. He also thinks that users of the attack may be caught.
"If they're working together, it ought to be easier to track them down
because they leave more of a trail," he said.
1
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CSapronett(a)aol.com (note: AOL.COM -- LOL!) wrote:
>My only regret is that I wont get to watch you all burn in hell !!!
I see. Would you mind elaborating? We are going to burn in hell
because...? We don't use AOL? We like our privacy? We use cryptosystems
that you'll never understand in your life time? Because we know how
to use (and create) remailers?
**
~*--*~
___________________________________________________________________
You don't need to buy Internet access to use free Internet e-mail.
Get completely free e-mail from Juno at http://www.juno.com
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3
2
/*
UELI.c
This implements Ueli M Maurer's
"Universal Statistical Test for Random Bit Generators"
using L=16
Accepts a filename on the command line;
writes its results, with other info, to stdout.
Handles input file exhaustion gracefully.
Ref: J. Cryptology v 5 no 2, 1992 pp 89-105
also on the web somewhere.
-David Honig
honig(a)sprynet.com
Built with Wedit 2.3, lcc-win32
http://www.cs.virginia.edu/~lcc-win32
26 Sept CP Release
Version Notes:
This version does L=16. It evolved from an L=8 prototype
which I ported from the Pascal in the above reference.
I made the memory usage reasonable
by replacing Maurer's "block" array
with the 'streaming' fgetc() call.
Usage:
UELI filename
outputs to stdout
*/
#define L 16 // bits per block
#define V (1<<L) // number of possible blocks
#define Q (10*V) // at LEAST 10 * V, to assure each block seen
#define K (100*Q) // at LEAST 100 * Q, as large as possible
#define MAXSAMP (Q + K)
#include <stdio.h>
#include <math.h>
int main( int argc, char **argv )
{
FILE *fptr;
int i;
int b, c;
int table[V];
float sum=0.0;
int run;
// Human Interface
printf("UELI 26 Sep 98\nL=%d %d %d \n", L, V, MAXSAMP);
if (argc <2)
{printf("Usage: UELI filename\n"); exit(-1); }
else
printf("Measuring file %s\n", argv[1]);
// FILE IO
fptr=fopen(argv[1],"rb");
if (fptr == NULL) {printf("Can't find %s\n", argv[1]); exit(-1); }
// INIT
for (i=0; i<V; i++) table[i]=0;
for (i=0; i<Q; i++) {
b= fgetc(fptr)<<8 | fgetc(fptr);
table[ b ]=i;
}
printf("Init done\n");
// COMPUTE
run=1;
for (i=Q; run && i<Q+K; i++)
{
// COMPOSE A 16-bit quantity
b=fgetc(fptr); if (b<0) run=0;
c=fgetc(fptr); if (c<0) run=0;
if (run) { b = b<<8 | c;
sum += log( (double) ( i-table[b] ) ) ;
table[ b ]=i;
}
}
if (!run) printf("Premature end of file; read %d blocks.\n", i-Q);
sum = (sum/( (double) (i-Q) ) ) / log(2.0); // i should be K if enough
samples
printf("fTU= %f\n\n", sum);
printf("Expected value for L=16 is 15.167379 \n");
// Add further interpretation/thresholding of the number of sigmas from
expected,
// and include the fudge factors explained in the paper.
} // end
1
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On Sun, 27 Sep 1998, Reeza! wrote:
>
> At 12:14 AM 9/27/98 +0200, Anonymous wrote:
> >CSapronett(a)aol.com (note: AOL.COM -- LOL!) wrote:
> >>My only regret is that I wont get to watch you all burn in hell !!!
> >
> >I see. Would you mind elaborating? We are going to burn in hell
> >because...? We don't use AOL? We like our privacy? We use cryptosystems
> >that you'll never understand in your life time? Because we know how
> >to use (and create) remailers?
>
> Don't bother, it is a troll.
>
> Not a very original, or even interesting one either.
Whenever these people troll for flames here they get them one way or
another. Then it seems Merrill always tries to take the moral high ground
and show us all his bleeding heart and tell us how we should embrace the
AOL idiots and cherish them. The AOLers get triple effect that way. I don't
think Merrill ever misses a chance to defend AOL and attack anybody who
attacks them. About a week ago somebody posted a copy or parts of most AOL
postings which were sent here in the last months. Merrill ignores the part
about how the posts were classified and sends back some vague flame accusing
the author of classing posts he disagreed with as "clueless" then he quotes
the entire thing back to the list.
I don't know which is worse. At least the people flaming the AOL wimps are
funny.
2
1
At 23 Sep 1998 04:27:46 Reeza! wrote:
> Well, it seems I have an admirer. A follower, anyway. Quoting things I said
> from two separate posts.
I read all the posts to cypherpunks. Some several times to try to
understand what some blowhard is trying to say.
[Re; Clinton]
> I believe the other issues are relevant. ... clear evidence of malfeasance
> in many, and every area should not be ignored ...
My argument was:
1. You can't seriously be this fired up over perjury (post OJ), can you?
2. there have been several topics discussed on cypherpunks that were more odious.
3. Charge him with his big crimes. Don't "Al Capone" him.
Your belief that Starr is leading up to the real issues is compatible with my
(now belaboured) point. I still don't understand what you're trying to add.
> I'm not building up the bogey man, I'm discussing what I see. What I see,
> on every major and minor newstation, is a disgrace. A documented, public
> record disgrace.
Well, this *is* a pathetic reason. You want Clinton impeached because the
media tells you so.
At 23 Sep 1998 04:31:48 Reeza! wrote:
> > -- an anonymous aol32 user.
>
> You must be proud of that sig.
It's a shit magnet. Works, too!
> I'll bet you weren't on the list when the list of deceased CIC bodyguards,
> friends and associates was posted either.
> <sigh>
> flush out your head, you aol user. there is more going on here than just
> 'fibbing'.
Fine. charge him with the other things!
As far as the "newby" flame, I've seen that corpse lists here twice recently.
Maybe you've dated yourself? I remember a time without Reeza! posts...
And there's a sig flame in there, trying to get out. A new low for you, Reeza?
>
> Reeza!
-- an anonymous aol32 user.
2
1
Paul H. Merrill wrote:
> <<Heavily snipped to allow for those who don't like it otherwise.>>
Yeah, if you quote back over a hundred lines after adding 6, 8, or
whatever it happened to be.
> > About a week ago somebody posted a copy or parts of most AOL
> > postings which were sent here in the last months. Merrill ignores the part
> > about how the posts were classified
>
> I read his classification criteria closely, and read the results of the
> classification process.
> > and sends back some vague flame accusing
> > the author of classing posts he disagreed with as "clueless" then he quotes
> > the entire thing back to the list.
> >
> Then commented that he had not followed his own criteria.
And where did he not? A few could be debated. The rest were either written
so badly that they were incomprehensible, were off-topic, or didn't
include quoted material in a reply/followup. He also stated that he was
counting postings which used that '<< >>' scheme as automatically bad,
which is understandable. Either way, he seemed to be trying to show the
statistics. Pull one or two postings off of one side and put them on the
other and the statistics are still pretty bad for AOL.
> > I don't know which is worse. At least the people flaming the AOL wimps are
> > funny.
>
> If funny is all you want, may I recommend rec.humor.funny and, in case
> you are up on no current events but Clinton, rec.humor.funny.reruns.
No, I want a Cypherpunks list which discusses political issues,
cryptography, and things related to that. Since this is the Cypherpunks
list, we aren't going to censor on the basis of content or origin point.
If all you want to do is defend AOL and their ilk, may I recommend
comp.os.ms-windows.advocacy and alt.aol-sucks.
> And to the brilliant person seeking muff diving pics, gee send a real
> address and we'll see what we can do. (At least he didn't want it for
> pre-muff variety.)
Muff diving pics? Do we want to know? Serious questions.
2
1
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