Oracle and HP Engage in Court Battle over Itanium Processor

Oracle, in a court filing this past Friday, accused HP of secretly contracting Intel to continue to make Itanium processors so HP can show to the world that "a dead microprocessor is still alive," and thus make money from the locked-in Itanium customer base as well as take business from Oracle's Sun servers.

Oracle stated the market had no idea that Itanium is alive and that Hewlett-Packard is paying to keep it alive. If Intel was to decide the fate of Itanium alone, their decision would have been to discontinue it, as reported by PC World.

For HP, this filing is a "desperate delay tactic designed to extend the paralysing uncertainty in the marketplace" which in their opinion was created in March of this year when Oracle committed a breach of contract by declaring that "it would no longer support HP's Itanium platform."

HPfiled a lawsuit against Oracle in June over Oracle's decision to discontinue the development of software for the Itanium processor which is used in HP's high-end servers. HP claimed that with this decision Oracle violated "legally binding commitments" that Oracle made not only to the HP, but also their 140,000 joint customers.