Oracle Executives Regret Sun Acquisition

According to a filing by HP in a dispute with Oracle over the porting of its software to the Itanium platform, HP stated that Oracle had gone with an aggressive strategy against HP's Itanium servers after sales of competing Sun's Sparc servers have dropped considerably. In addition to that, HP stated that Oracle executives believed that the 2010 acquisition of Sun Microsystems was a mistake.

Oracle announced back in 2011 that it would not support HP's Itanium platform on future products, which marked the latest move by the company that made running software on the HP platform more expensive. HP also submitted the filing to the Superior Court of the State of California, Santa Clara County, in opposition to Oracle's motion for summary adjudication.

Oracle decided not to support servers running the Itanium processors due to the fact that the processors were nearing the end of their life. When Oracle made this move, HP decided to sue because HP uses the chip in its high-end servers. Oracle CEO Larry Ellison made the decision not to port the software, a decision that was only shared with a few Oracle executives. Not even Oracle's Senior Vice President of Database Development was consulted on the issue.

Last month HP filed for a pretrial ruling that Oracle is contractually required to offer future versions of its software on the Itanium platform and claimed that an agreement between Intel and HP ensured that the Itanium was not an end-of-life processor. Oracle, on the other hand, stated that HP fraudulently induced it to enter into the agreement, stating that the company withheld information that it was secretly paying Intel $88 million per year to artificially continue the Itanium processor's life span.

The most recent filing points out that Intel had refuted Oracle's claims regarding the supposed end-of-life of the Itanium platform. A testimony from the Intel Executive in charge also made it clear that, "far from being near its demise, Itanium had just gained new vitality when Oracle made its announcement."

Oracle's internal sales communications shows the real reason the company decided to drop support for Itanium. The sales force was exhorted to take full advantage of the Itanium announcement according to the new filing, which quoted a sales executive from Oracle saying that, "we are the ones dictating IT/Itanium obsolescence."

According to a statement from HP, "This new information that has come up during the discovery period further underscores Oracle's behavior as 'anti-customer'. It reinforces the fact that Oracle breached its contractual agreement with HP in a bad faith attempt to drive hardware sales from Itanium to Sun servers." Deborah Hellinger, spokeswoman for Oracle, declined to comment on the filing.

Source: Computer World - HP: Oracle executives believed Sun acquisition was a mistake

HP Not Letting Oracle Drop Itanium Support Without A Fight

So, if you haven't already heard, HP has no plans of letting Oracle off the hook for supporting Itanium. Oracle publicly announced back in March that it was officially discontinuing support of Oracle applications running on HP's Intel Itanium powered servers.

Jump forward three months and HP is starting to fight back by claiming that Oracle has a legal obligation to continue supporting Itanium. According to a statement made by HP, "HP believes that Oracle's March 22 statement to discontinue all future software development on the Itanium platform violates legally binding commitments Oracle has made to HP and the more than 140,000 shared HP-Oracle customers. Further, we believe that this is an unlawful attempt to force customers from HP Itanium platforms over to Oracle's own platforms."

HP has sent Oracle a formal legal demand letter telling the company that it needs to reverse its decision on abandoning Itanium. "HP believes that Oracle is legally obligated to continue to offer its software product suite on the Itanium platform and we will take whatever legal actions are available to us necessary to protect our customers' best interests and the significant investments they have made," HP stated.

Oracle, back in March, made numerous claims that HP apparently disagreed with. Not only did Oracle announce publicly that the company was discontinuing support for HP's Itanium but they also claimed that Intel was hopping on board and doing the same thing. According to Oracle, "Intel management made it clear that their strategic focus is on their x86 microprocessor and that Itanium was nearing the end of its life."

The unfortunate thing, for Oracle at least, is that both HP and Intel are refuting Oracle's claims. According to HP, "HP remains committed to a long-term mission-critical server roadmap, including Intel's Itanium processor. Similarly, Intel has repeatedly reinforced its ongoing commitment to the Itanium roadmap."

While HP is going after Oracle for Itanium support, other vendors have already begun abandoning the platform. Microsoft announced back in April of 2010 that it was ending support for Itanium. Will HP win out over Oracle or will Oracle's claims that Intel is dropping Itanium as well come true?

Source: Server Watch - HP Demands Oracle Support Itanium

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