Oracle Agrees To Support Itanium

Oracle has committed to supporting the Intel Itanium processor on servers, ending what has been a long running feud with HP.

Oracle’s announcement is well timed because it was just a few weeks ago that a court ordered it to do just that. It did say however, that it will appeal the court’s judgment.

This should put an end to what has been a rather grubby row between Oracle and HP that centered around whether or not the two firms have an agreement about developing software for the IA-64 architecture.

The row, which was not helped by former HP CEO Mark Hurd’s abrupt firing from HP and hiring at Oracle, pulled in Intel and saw Oracle force HP into admitting that it had a secretive deal with Intel for development.

Upon hearing the court’s decision in August, Oracle couldn’t resist taking another dig at HP and its insistence that Oracle continue supporting a processor that as far as it was concerned could die.

“We know that Oracle did not give up its fundamental right to make platform engineering decisions in the 27 words HP cites from the settlement of an unrelated employment agreement. HP’s argument turns the concept of Silicon Valley ‘partnerships’ upside down,” said Oracle spokeswoman Deborah Hellinger then. “We plan to appeal the Court’s ruling while fully litigating our cross claims that HP misled both its partners and customers.”

It looks like Oracle has no choice however, and in a statement it said that it will abide by the decision of the court.

“Previously, Oracle announced that it would stop developing new versions of its software on Itanium microprocessors. For example, that meant version 12c of the Oracle database due out in early 2013 would not be available on Itanium,” it said.

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HP Wants The Court To Bully Oracle

HP has asked California Superior Court Judge James Kleinberg to order Oracle to continue developing software for its Itanium servers.

HP and Oracle have been locked in a bitter legal dispute over Oracle’s decision to stop supporting Intel’s IA-64 architecture used in Itanium processors. Now HP has asked Judge Kleinberg to order Oracle to continue developing software for its Itanium servers until it stops selling them or the contract term expires.

Oracle claims its decision to stop developing for Intel’s IA-64 architecture was spurred on by Intel having made it clear that it intended to focus on its x86 Xeon processors. Intel has said that its Xeon processors are being edged into the market presently occupied by its Itanic chips.

HP disputed Oracle’s claims of Itanium reaching the end of its life and it emerged that HP had a contract with Intel to support the chip. However, and perhaps most damaging for HP, was a release of emails between Intel and HP that seemed to suggest that Intel had enough of Itanium and that HP was having to all but strong-arm Intel into continuing to produce Itanium processors.

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WebOS Lives

HP is aiming to keep WebOS alive by putting it on printers.

The firm has discontinued its WebOS devices such as the Touchpad tablet and Pre 3 smartphone but WebOS will appear on new products, according to Pocketlint. The operating system (OS) will come on the Designjet line of HP printers.

An HP spokesperson said, “HP is currently investigating using WebOS on its Designjet range of professional printers.”

It’s likely that the OS will come on consumer printers at some point in the future, too. The following statement also hints that it could appear on products other than printers.

“HP is 100 [per cent] committed to producing print solutions that meet our customer needs and we will continue to drive innovation to ensure our products and solutions meet market demand. We built our printing franchise based on being OS agnostic – we have been and will continue to be agnostic to meet our various customer needs. As webOS plans develop we will continue to evaluate how and if we incorporate it into our future products.”

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HP’s PC Division Decision This Month

HP will decide on the future of its PC business this month, according to a statement from its newly installed CEO.

While it was under the Apotheker captaincy the firm announced rather shocking plans to dump the PC business. Okay, it didn’t explicitly say that, rather it said that it would consider selling it or spinning it off, which apparently meant something else to HP than it did to normal people.

According to Bloomberg, new HP CEO Meg Whitman sprinkled a little more colour into the HP PC business tapestry, and in a conference call said that the firm is almost ready to say what its plans are.

It’s likely that shareholders and the board are still reeling from the suggestion, but the extra time will give HP room to decide on what it wants to do with the still profitable, but boring hardware arm.

While it was under Leo Apotheker’s rule the firm had given itself the deadline of the end of the year for a decision, but presumably sick of people asking her, “what are we going to do with the PC business?”, Whitman has bought the decision forward.

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Will Oracle Buy HP?

Word on the street is that Oracle has threatened to buy its sworn enemy HP. According to the Times of India, HP directors are terrified that their falling shares would make the company vulnerable to a bid from Oracle. Apparently this was the reason for the sudden sacking of Leo Apotheker.

Oracle has considered informally whether to approach Hewlett-Packard, but it’s unlikely to make a bid any time soon. But to make sure HP has hired Goldman Sachs to help it prepare for any possible moves by activist investors, one person said.

If Oracle were to make a hostile takeover it would be with the sole aim of getting rid of a lot of people who have hacked Larry Ellison off. It might even result in Mark Hurd returning to the company.

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Is HP Going To Court?

HP and its top executives have been accused of misleading investors before a slump in its stock price.

HP is facing a class action lawsuit filed by Robbins Geller Rudman and Down alleging that CEO Leo Apotheker and CFO Cathie Lesjak misled investors before making announcements that included the possible spin-off of its PC business, dumping WebOS devices and the purchase of British software outfit Autonomy.

Those announcements, all made in one afternoon, led to a 20 per cent drop in HP’s share price the following day. That, according to Reuters, was the largest one day decline in HP’s share price since 1987.

The lawsuit against HP does not specify damages but it serves to highlight the growing concern at the way Apotheker is leading HP. The firm’s announcement that it was considering leaving the PC business was a shock to many, but its decision to dump its WebOS devices was perhaps the biggest shock of the lot.

While HP’s PC business was always seen as a low margin operation, WebOS was viewed as a core part of HP’s future strategy. The firm kept banging on about slipping WebOS into as many devices as possible, however all that talk evaporated, just like HP’s Touchpads when it sold them off at fire sale prices for a massive loss.

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HP Exec Claims Evidence Was Falsified

HP has been accused of producing “false and fabricated” evidence against a former sales executive who the firm claims stole confidential information.

Adrian Jones, who was a sales executive at HP, left the firm to join Oracle in February 2011. HP claims that Jones nabbed a load of confidential information between 10 and 11 February using a removable hard drive. Jones told the court that the hard drive was used by HP for backup and was never in his possession, saying that HP and its outside counsel have confirmed these facts.

Jones’ current employer Oracle said that the accusations leveled at its employee are simply not true, with Deborah Hellinger, a spokeswoman for Oracle telling Bloomberg, “The central allegation in HP’s employment lawsuit against Adrian Jones has turned out to be complete fiction…. If they did it knowingly then HP and their lawyers should be sanctioned. If they did it mistakenly then they simply owe Mr Jones an apology.”

HP is said to have probed Jones’ relationship with a female subordinate, for whom Jones allegedly arranged a 94 per cent pay rise and expensed travel that had no business purpose.

Jones’ case mirrors that of former HP CEO Mark Hurd who left the company after similar expense discrepances were brought to light. Hurd, a close friend of Oracle CEO Larry Ellison, then joined Oracle as co-president within weeks of leaving his post at HP.

HP and Oracle have been going at it hammer and tongs in a largely public row over Oracle’s decision to dump support for Intel’s Itanium architecture. The two companies are in various other legal battles as well, with HP claiming that Oracle had gone from being a partner to a “bitter antagonist”. We assume the next lawsuit will claim that Oracle stole HP’s lunch money and beat it up behind the bike shed, or perhaps the other way around.

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