All change for technology

Network computers, object-based development, connectivity via the Internet, outsourcing, Year 2000, and the EMU. These are areas earmarked for the most change in 1997.

It will be the year of the network computer, and Oracle is leading the way – why spend #1,500 on a PC to connect to the Internet when with a few applets you can download to your network computer for 20p a go? Or do it free if you’re on a cable network. Microsoft beware. Java here we come.

Expect the big breakthrough on Internet security this year. The banks are spending billions on the problem, and cracking it will open vast new commercial opportunities for switched on businesses. That said, 1997 may see the start of the Internet backlash – email applications aside, companies everywhere are increasingly giving it the thumbs down on grounds of inaccessibility.

Already, international delivery organisations like DHL and Fedex are consignment tracking on the Internet, allowing anyone to check precisely the location of their package anywhere in the world.

Remote offices, with far cheaper overheads, will explode in 1997. British Airways has paved the path to India for its accounts processing and Arthur Andersen may soon follow.

Outsourcing generally will see major advances, despite the pain of the handover and transition period, and not just at FTSE-100 companies. Key problems such as who owns the technology and other contractual implications will continue to create difficulties.

Year 2000 solutions have emerged from the software developers. It is now up to end-users to upgrade their software. Auditors will start qualifying accounts at the many companies whose thinking parts are still stuck in the sand.

Euro currency convergence will be an issue for every UK company that has continental dealings, and software manufacturers will be working flat out to ensure customers enjoy a smooth transition from their local currency to the euro. This is the biggest issue currently facing the software industry – and the solution must be found at its own expense. Users are entitled to the new euro-friendly software gratis as part of their maintenance contract. If John Major or Tony Blair decides to join the single currency at the earliest date – 1 January 1999 – the pressure will really be on.