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DDA Media Coverage:


SundayMoney
John McLeod
, editor | jmcleod@hfxnews.southam.ca


The Sunday Daily News, June 27, 1999 * Page 64

Bug busters
Computer consultants cashing in on Y2K problem

By STEPHEN BORNAIS
The Daily News


On this New Year’s Eve, you won’t find Pat d’Entremont and Mario DeMello holed in some bunker worrying about the world ending when the clocks strike midnight.

They’ve already made their peace with the Y2K problem, and in doing so vaulted DDA Computer Consultants Ltd. on to Profit magazine’s 1999 listing of the country’s 100 fastest-growing companies.

That’s what happens when you post a 410-per-cent revenue growth in five years, thanks in large part to an early recognition that the millennium bug was a business opportunity, not just a programming glitch.

DDA is jointly owned by DeMello and d’Entremont, who have known each other since 1975 when both were working in Halifax’s then-infant computer sector.

The two partners travelled much different routes to get to the same place. DeMello is the self-taught driving force, d’Entremont the university-educated analytical one.

Hailing from the village of Lower West Pubnico on Nova Scotia’s French Shore, d’Entremont took the advice of a math teacher he respected and, in 1971, entered Acadia University to take computer science.

DeMello, on the other hand, arrived in Canada in 1972 as a 22-year-old refugee from Uganda. He had been caught up in the mass expulsion of Asian merchants and professionals ordered by dictator Idi Amin.

Canadian immigration officials in Montreal suggested Halifax, and down he came. A visit to a Manpower office got him three job interviews, followed by three job offers. He took the one with Maritime Life, which evolved into a night job in its computer department.

DeMello doesn’t see himself as lucky, but rather a person who took advantage of what was before him. "Opportunities are always there, you just have to recognize they’re there," he said.

The two men renewed acquittances while working for Force 10, a subsidiary of MT&T, in the mid-1980s. It was when DeMello fell victim to the first round of company layoffs and d’Entremont the second that they went into business together in 1986.

Drawing up a one-page partnership agreement, the two began working on subcontracts from other consulting firms until they could establish their own client base.

By the early 1990s, the business was growing, with DDA working on fewer subcontracts and developing more direct relationships with clients.

In 1996, the partners first read stories in the media about the potential for problems with computer systems as their internal clocks turned over at midnight on Dec. 31, 1999 – the much-hyped Y2K problem.

The work that would consume the company for the next three years began as a check of their own software to determine what the results might be if it failed.

DDA’s software was discovered to be fully compliant, DeMello said, but the partners saw a business opportunity in helping others sort through their problems.

It didn’t hurt that the partners had expertise in Foxpro, a Microsoft program that had become the provincial-government standard, also used by companies such as Maritime Life.

“Over time, we became the experts in that tool,” DeMello said. Knowledge of dated computer systems wasn’t all that DDA could offer, DeMello said, but also system testing as well.

The work peaked late last year because most large companies had already completed their Y2K programs. But a recent surge has occurred as smaller companies belatedly get around to testing their own systems.

DeMello isn’t one to dismiss Y2K as so much ballyhooed malarkey. He said much of what DDA encountered was reality. "We know that certain systems, or certain software products, will not run in the year 2000, or not run correctly," he said. "So there’s no question in our minds there was an issue there."

The Y2K problem is actually quite easy to fix, d’Entremont said. "The problem is it’s all over the place."

With most of the Y2K work completed, DDA is using its client base and expertise to expand into new technologies and consulting services, such as Web-site development.

The company got into another new service almost by default, DeMello said, following the evolving demands of clients. DDA now acts as a placement service, finding trained IT professionals for others for a fee. "We’ll provide people on contract to clients. We’ll build a team to manage projects or, if they want an employee, we’ll provide that, too," he said.

Finding those qualified people has required the casting of a rather large net. While locals make up the bulk of the source, DDA also places people from across Atlantic Canada, while central Canadians and Americans have been sending resumes as well. Then there are the Y2K-ready Indians.

"India is one of the few countries that plans well in advance not to resolve the problem, but to train people to resolve the problem," DeMello said.

Sort of like DDA itself. The two men are confident the work they and others have done will ensure a happy new year. Almost all major computers systems have had their bugs worked out, DeMello said, and any problems that do crop up will be minor inconveniences. No need to build that bunker and stock it with rice and flour.

D’Entremont compares any effects that may appear to those of a bad rain storm.

"The sewers get backed up and it’s probably not pretty for a few days for some people, (but) those who are on high ground will be all right,"he said.





SUNDAY, JULY 18, 1999THE SUNDAY HERALD -BUSINESS
PAGE A13


Y2K triage team

DDA Computer Consultants' ability to get the job done fuels 410 per cent growth

By Tim Arsenault
Business Reporter

THE PRINCIPALS of DDA Computer Consultants Ltd. could be considered paramedics to the computer world.

The Halifax consulting firm has helped a range of clients face the challenges posed by the Y2K problem.

"There's a process called triage that people go through, saying, 'What are the critical systems?' " said co-founder Patrick d'Entremont in an interview.

That ability to detect priorities - similar to the analytical skills found in an emergency room - has accounted for good news at DDA. The company claims robust revenue growth over the past five years, from about $597,000 in 1993 to about $3 million in 1998.

Its staff of full-time employees and independent contractors has gone from 10 to 30.

"First of all, growth is a comparative thing, so it means that five years ago (revenue) wasn't that huge," said Mr. d'Entremont.

"Although we have some large customers - MTT, Maritime Life, government - we also have a lot of small ones. And they add up," said partner Mario DeMello.

(DDA stands for DeMello d'Entremont Associates, the original name of the company.)

The Y2K problem is the possibility that computers may malfunction or shut down by not being able to properly interpret the date Jan. 1, 2000.

In order to conserve then-expensive memory capacity, early computer systems stored the year as only two digits, so 2000 might be read as 1900 or some other year.

With less than six months to go, Mr. DeMello said the Y2K business has slowed considerably.

"It's never really been the key component at all. It's just one of the things," said Mr. d'Entremont.

The technology atmosphere in Nova Scotia was a lot different when DDA started in 1986.

"Back then, the large corporations had their mainframe systems. You could probably count them on one or two hands. Other than that, personal computers were just really starting to come out in use in businesses," said Mr. d'Entremont.

"We kind of kept on going in the direction of desktop and network database management systems for years."

Both partners had worked as consultants before striking out together, but they had no business experience.

"Our mission statement back then was, 'I never want to work for someone else again.' That really drove us, because we had been through rounds of layoffs and office politics. . . . We were in our early 30s, so it was prime time to branch out," said Mr. d'Entremont.

"Essentially, our software development team was Pat and myself. We did everything. Then we grew to the point where somebody might require a skill we didn't have and we'd find somebody to work on that," recalled Mr. DeMello.

They recognized immediately that sales and marketing was a weakness, but they persevered and often got business from pieces of large computer projects.

"You're talking to two people who are techies who started their own business. . . . Working for a business is different from running one. There was a learning curve there," said Mr. DeMello.

"We also made sure we didn't pay ourselves a high wage. We paid ourselves less than what we would get if we worked for somebody else."

Y2K started popping up as a strong revenue generator around the mid-1990s.

"We just steadily kept getting new business and when it got close to the year 2000, a lot of businesses either had to correct the problem or else replace aging systems," said Mr. d'Entremont.

"In terms of information technology, the problem is so easy to explain and understand that a lot of people never took it that seriously."

However, business people were slow to catch on to the possible impact of a computer malfunction on a billing system.

"You could talk to businesses and say it was going to be an issue five years from now, but if it was not a priority to them, they didn't react. Even now, some small- to medium-sized businesses haven't reacted," said Mr. DeMello.

The reinvested profits from Y2K fixes mean DDA can take a step or two forward.

"It allows us to be proactive as opposed to reactive. But we're still a small company. We'll still be reacting in some areas because we just don't have the dollars or the infrastructure to investigate all these things," said Mr. DeMello.

And the stampede to prepare for Y2K has created a pent-up demand for other computer system requirements as more mundane projects were put on the back burner.

DDA intends to boost its Website business and placement service for computer experts, in addition to its focus on software development.

It's also looking at exporting its skills to the Northeastern U.S.


Copyright © 1999 The Halifax Herald Limited. Republished with permission of The Halifax Herald Limited.





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