Most of you might not know that Oracle uses, or used, HP’s data center or servers to store and host all its data, and these servers are powered by Intel’s Itanium chips. And hence, the architecture of the servers is called the Itanium server architecture. Everything was okay till the March of 2011, when Oracle announced that the company would be moving away from the Itanium servers that HP offers, and this was breaching a contract between the companies.
And more than breaching, that statement from one of the big companies in the tech world because a negative marketing for HP’s Itanium servers. People started moving away from the server and new and potential customers started striking off HP’s Itanium servers from the list of servers to consider. This was a major blow to the company’s business right from the second quarter of 2011.
For this, and because Oracle breached the contract, HP sued Oracle and the case is going on. And HP is planning on claiming US $4 billion to US $4.2 billion as damages from Oracle. PC World writes:
An economist that HP plans to call in the case made the estimate at an evidentiary hearing on Monday in Santa Clara County Superior Court in San Jose, California. The economist, Jonathan Orszag of the consulting firm Compass Lexecon, estimated the difference between HP’s Itanium-related revenue with and without Oracle’s March 2011 announcement that it would stop porting software to Itanium.
“The Oracle conduct at question in this case had a very significant and negative effect on the HP Itanium business,” Orszag said during questioning by HP’s legal team. Oracle has already been ordered to get back to using HP’s Itanium servers, but the company is going to appeal that decision very soon. The two parties have started presenting their case from yesterday before the judge in the case, James Kleinberg.
Source: PC World