The controversy shows how partnerships can Fray when changes in business strategy
Opening arguments are to begin Tuesday in a court of the State of California in a legal battle five years between the first HP and Oracle.
Jurors are scheduled to meet Tuesday to hear the opening arguments in a legal battle five years that focuses on the alleged role of Oracle Corp., in the fall of one of the most lucrative products of the former Hewlett Packard Co.. “. The lawsuit seeks $ 3 billion in damages from the pivot database.
The trial before the court of the State in San Jose, Calif, Is one of many recent clashes between titans of Silicon Valley. It follows closely on the heels of a jury verdict last week that found using Google Inc. Java Oracle software did not violate copyright laws, a failure of Oracle promised to appeal.
action against HP Oracle illustrates how business organizations can break when business strategies change. The trial is expected to last four to five weeks and could include witnesses as Oracle Executive Co-Chief Safra Catz and Ann Livermore, director HP Hewlett Packard spin-off Enterprise Co., who inherited the case.
The case began in 2011 in response to an Oracle press release that cast doubt on the future of the flagship HP computers, which are now sold by HP Enterprise.
The dispute is related to another bad blood between the companies, including the friction during movement of Oracle several years ago to start selling hardware that competes with HP.
HP, like other server systems manufacturers, mainly based on Intel Corp. chips to stimulate their equipment.
However, some of Palo Alto, Calif., Machines of the most expensive business using a family of completely different chip, called Itanium, the variety used in most computers.
In 1994, Intel and HP Itanium developed with the hope of producing a calculation engine widely used to successfully Intel x86 family of widely used. Itanium machine proved popular for some jobs where reliability is paramount, such as operating grants. But most other server manufacturers and customers x86 chips found more attractive.
the lack of traction Itanium has prompted rivals to reach the unflattering nickname “Itanic.” International Data Corp. estimated annual sales of powered Itanium fell to $ 876 million in 2015, from $ 3.1 billion in 2011.
Matt Eastwood, an analyst at the research firm, said customers who have moved away from Itanium in many cases shifted to 86 HP machines. But these systems do not have the same margins than systems based on Itanium-generous benefits, or the same lucrative contracts for technical support, he said.
HP says Oracle, for years an important partner helped boost sales of collapse due to its purchase of Sun Microsystems Inc., a deal that resulted from an Oracle competitor, HP January 2010.
Oracle denies the charge, saying Itanium-based products declined for other reasons.
Another conflict between Oracle and HP came in September the same year, after Oracle took a job as co-president Mark Hurd, former CEO of HP, whose board was asked to resign last month.
HP filed a complaint, arguing that Mr. Hurd had trade secrets that enable Oracle unfair competition with his former employer. The companies reached an agreement several weeks later.
In March 2011, Oracle said it would stop creating new versions of its database and other software for Itanium-based systems.
company press release said the private conversations of senior executives were clear that Intel Itanium was nearing the end of its useful life. Oracle said that other software manufacturers have stopped making new programs to the chip technology.
In response, Intel said it remains committed to Itanium. So is HP, which many customers use Oracle software to run their operations. The computer maker sued Oracle in June 2011, saying that Oracle was bound by the settlement by Mr Hurd to maintain support for Itanium as he had been.
“Immediately after issuing its announcement, Oracle has urged its sales force strike in the basic HP Itanium customers to try to change the Sun platform by Oracle,” a brief chase HP alleges.
In August 2012, a judge sided with HP, ruling that the 2010 agreement obligated Oracle to keep developing Itanium versions of its products free of charge as long as HP sold such systems.
The new trial, delayed by an Oracle appeal and other factors, is expected to focus on whether either company violated the agreement and any damages that might be owed as a result.An Intel spokesman declined to comment. Intel’s last Itanium model was released in 2012. Intel hasn’t given a timetable for releasing a successor version.
Oracle resumed releases of software for Itanium following the 2012 ruling. It contends that, as a result, HP wasn’t harmed and deserves nothing like the $3 billion in damages it is seeking.
The software company filed a separate claim that HP illegally misled customers about the chip technology, which it paid Intel to keep developing. “HP desperately sought to hide the demise of Itanium from its customers and the market in general,” Oracle alleged in a document summarizing its legal position.