Year 2000 worries will bring about a mini boom in the economy - but some IT professionals should worry about the aftermath, one of America's leading technology pundits warned today.
Ned Riley, chief investment officer at BancBoston Robertson Stephens, gave the warning at the company's international technology and telecoms conference in London today.
He said to expect to see a global buying boom in late 1999 as companies seek to protect themselves from Y2K disruptions by stockpiling as much as two months' supply of goods and components.
"Whether it's simple things like buying extra groceries or components for computer systems, all people are wary of the prospect that Y2K bugs could create long supply disruptions," Riley said.
"[They may want to build up] as much as a month or two's cushion - some issues may take a long time to reconcile," he said.
But while Y2K panic buying may provide the world economy with some short term stimulus, Riley warned that many IT companies were likely to post lacklustre results in the new year, once Y2K related demand for equipment and services abated.
"We might see some disappointment in big companies' performances in the next nine months," Riley said.
IT services firms which had enjoyed rapid growth on the back of the Bug would be hit first, Riley said.
"Consultant firms are already starting to report disappointing results as a result of Y2K slowdown," he said.
Many equipment vendors had also failed to distinguish between Y2K related and general demand, and could be surprised by order books drying up.
"I would suggest that next year could be a tough year for solution developers," Riley said. "Firms will have to go through some lay offs."
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Bug means Siri can be asked to read aloud all your hidden notifications
Yeah, sorry about all that, simpers Zuckerberg