HP: Oracle execs thought Sun acquisition was a 'bad idea'

Summary:HP said in a Monday filing that Oracle's executives believed the Sun acquisition was poor judgement and a mistake.

As the Oracle--HP battle pre-trial warmup match begins in court, HP claimed in a filing that when Oracle bought Sun, some senior executives thought internally it was a bad idea.

HP submitted the filing in California opposing Oracle's motion for a summary adjudication.

In the HP filing, it alleges Oracle set upon a hard-hitting strategy against HP's Itanium-based servers, often used in datacenters, after sales of competing Sun's Sparc servers had declined rapidly.

Sun Microsystems was bought by Oracle for $7.4 billion --- including Sun's debt --- in 2009, which included its Java software and its hardware mantle of servers.

Itanium was coming to the end of its life, and Oracle no longer wished to support the chip. But HP accused Oracle of ending support for Intel's heavy-duty Itanium chip in a move that would go against a support agreement in place.

HP sued Oracle, and Oracle fired back on all-cylinders, accusing HP of false advertising for failing to disclose the terms of its contract with Intel, claiming that its software was made more expensive to run on the HP platform.

The filing also claims that Oracle chief Larry Ellison told only a select number of executives his plans not to support the Intel chip any longer, and that Oracle's senior vice-president of database development was not even consulted.

Claiming that a "significant number of customers were using" the platform, the filing noted how the senior vice-president said: "We didn't think there was a business reason to consider not supporting it."

HP reiterated that Oracle's "anti-customer" behaviour reinforces the fact that the company  "breached its contractual agreements with HP" as part of efforts to drive hardware sales away from Itanium to Oracle's own Sun servers, HP said in a statement.

The case continues.

Related:

Topics: Oracle, Banking, Enterprise Software, Hewlett-Packard

About

Zack Whittaker writes for ZDNet, CNET, and CBS News. He is based in New York City.

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