HP on Y2000 red alert

Hewlett Packard's chief executive Lew Platt has issued a statement outlining the risks to its business arising from the year 2000 bug.

The statement followed HP's third-quarter 10-Q report, filed with the US Securities and Exchange Commission, which included a detailed report on how the manufacturer believes the millennium issue will affect customer buying habits.

It admitted that the bug could cause purchase delays or the diversion of funds previously earmarked for new systems, which could adversely affect HP's revenues. However, it could also encourage customers to buy extra hardware to replace non-compliant legacy machines.

Platt conceded: 'HP is accepting the uncertainties with added resolve to be aggressive in the market. It is impossible to predict what will happen, so HP's approach is to prepare for multiple scenarios.'

These range from an increase in new hardware purchases to the possibility of no substantial change in IT spending.

Other possibilities open to corporates include delaying hardware purchases to focus on upgrading operating systems and converting software; changing the mix of products they buy - perhaps focusing more on networks and servers than PCs; or bringing forward IT purchases to 1999 in order to fight the bug.