Y2K cost estimate cut by $2 billion

As nations around the globe continue to ring in the new year without any millennium bugs, an industry research organization is trimming its estimate for costs related to Y2K computer downtime by $2 billion.

International Data Corp. predicts that Y2K bug-related glitches will eventually take a $21 billion bite out of the global economy. The research firm earlier estimated worldwide Y2K costs at $23 billion.

"With the reports we have in from our analysts in all the different time zones, we now have enough information to refine our numbers," John Gantz, leader of IDC's Project Magellan, a research project that has studied preparations for Y2K, said in a statement. "Since we never expected major infrastructure systems to fail, we haven't had to do much revision."

IDC, based in Framingham, Mass., expects the real impact of Y2K to become apparent in the coming weeks and months as companies repair business software affected by Y2K bugs.

"In a way, the major applications were easiest to identify, and the easiest to fix," Gantz said. "It's the applications deep in the bowels of the average company that will need the remedial work. And these will create downtime, an hour and a minute at a time."