Oracle's decision to nix Itanium support hurting HP sales

Oracle's decision to nix Itanium support hurting HP sales

Summary: Oracle's decision to end support for the Itanium platform hurt critical systems sales, says HP CEO Leo Apotheker.


HP and Oracle are at odds over Itanium support and the former appears to be taking the body blows.

In June, HP filed a civil lawsuit in the Superior Court of California in Santa Clara to force Oracle to support the Itanium platform. In March, Oracle said that it would stop supporting HP’s Itanium platform because Intel planned to shut it down in the long run. HP and Intel both denied Oracle’s claims. The two parties last month exchanged courtroom jabs over Itanium support.

Now it appears that Oracle's Itanium decisions are impacting sales of HP's mission critical systems. From a buyer perspective, putting off a purchase makes sense. Why would an Oracle shop buy an Itanium based system if support was uncertain going forward?

On Thursday, HP Leo Apotheker---amid a corporate revamp, decision to ditch the TouchPad and WebOS licensing talk---acknowledged that the Itanium flap was hurting business. Apotheker said:

Revenue in business critical systems declined 9% year over year. This decline is sharper than expected as our ability to close deals has been impacted by Oracle's decision and orders are being delayed or canceled. We are working diligently to enforce the commitments that Oracle has made to our customers and to HP.

Apotheker referenced Oracle a few times in regards to Itanium. He also said that HP was taking Oracle to court over "anti-customer behavior." It's unclear where this Itanium spat goes ultimately, but for now the flap is freezing sales of Itanium-based systems.

Also see: HP acquiring Autonomy - is this HP's IBM moment?


Topics: Processors, Hardware, Hewlett-Packard, Oracle

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  • RE: Oracle's decision to nix Itanium support hurting HP sales

    I would add, if HP looses an Oracle opportunity, they also loose significant pull-through business in storage, management software, services, and support contracts.

    HP's best alternative is to convince customers to run Oracle on its x86 ProLiant and Blade servers. That significantly cuts HP hardware and support revenue compared to Itanium/HP-UX, but it prevents the total loss of revenue which happens if they loose the Oracle platform decision to IBM AIX or Oracle/Sun.
    • Honk

      Here's a Kleenex -- go blow your noose.
      Robert Hahn
    • The question is: Why should Oracle support a dead platform?

      @meh130@... Itanium is a dead platform. HP sales are like what? 10 a year? Even if it is 100 or 1000 a year, the number is not high enough to justify the additional cost of supporting the platform at those low numbers.