HP seems to be on a tear, bouncing from litigation with one of its historically strongest partners to multiple CEOs in the last few years, continued layoffs, and a recent massive write-down of its EDS purchase. And, as we learned last week, the circus has not left town. The latest “oops” is an $8.8 billion write-down for its purchase of Autonomy, under the brief and ill-fated leadership of Léo Apotheker, combined with allegations of serious fraud on the part of Autonomy during the acquisition process.
The eventual outcome of this latest fiasco will be fun to watch, with many interesting sideshows along the way, including:
Whose fault is it? Can they blame it on Léo, or will it spill over onto Meg Whitman, who was on the board and approved it?
Was there really fraud involved?
If so, how did HP miss it? What about all the internal and external people involved in due diligence of this acquisition? I’ve been on the inside of attempted acquisitions at HP, and there were always many more people around with the power to say “no” than there were people who were trying to move the company forward with innovative acquisitions, and the most persistent and compulsive of the group were the various finance groups involved. It’s really hard to see how they could have missed a little $5 billion discrepancy in revenues, but that’s just my opinion — I was usually the one trying to get around the finance guys. :)
On Tuesday November 8, after more than a year of pre-announcement disclosures that eventually left very little to the imagination, Intel finally announced the Itanium 9500, formerly known as Poulson. Added to this was the big surprise of HP announcing a refresh of its current line of Integrity servers, from blades to the large Superdome servers, with the new Itanium 9500.
As noted in an earlier post, the Itanium 9500 offers considerable performance improvements over its predecessors, and instantiated in HP’s new Integrity line it is positioned as delivering between 2X and 3X the performance per socket as previous Itanium 9300 (Tukwilla) systems at approximately the same price. For those remaining committed to Itanium and its attendant OS platforms, notably HP-UX, this is unmitigated good news. The fly in the ointment (I have never seen a fly in any ointment, but it does sound gross), of course, is HP’s dispute with Oracle. Despite the initial judgment in HP’s favor, the trial is a) not over yet, and b) Oracle has already filed for an early appeal of the initial verdict, which would ordinarily have to wait until the second phase of the trial, scheduled for next year, to finish. The net takeaway is that Oracle’s future availability on Itanium and HP-UX is not yet assured, so we really cannot advise the large number of Oracle users who will require Oracle 12 and later versions to relax yet.
Earlier this week, in conjunction with ARM Holdings plc’s announcement of the upcoming Cortex A53 and A57, full 64-bit CPU implementations based on the ARM V8 specification, AMD also announced that it would be designing and selling SOC (System On a Chip) products based on this technology in 2014, roughly coinciding with availability of 64-bit parts from ARM and other partners.
This is a major event in the ARM ecosystem. AMD, while much smaller than Intel, is still a multi-billion-dollar enterprise, and for the second largest vendor of x86 chips to also throw its hat into the ARM ecosystem and potentially compete with its own mainstream server and desktop CPU business is an aggressive move on the part of AMD management that carries some risk and much potential advantage.
Reduced to its essentials, what AMD announced (and in some cases hinted at):
Intention to produce A53/A57 SOC modules for multiple server segments. There was no formal statement of intentions regarding tablet/mobile devices, but it doesn’t take a rocket scientist to figure out that AMD wants a piece of this market, and ARM is a way to participate.
The announcement is wider that just the SOC silicon. AMD also hinted at making a range of IP, including its fabric architecture from the SeaMicro architecture, available in the form of “reusable IP blocks.” My interpretation is that it intends to make the fabric, reference architectures, and various SOCs available to its hardware system partners.