- Forrester Councils
- Councils Overview
- log in
Posted by Richard Fichera on June 16, 2011
On June 15, HP announced that it had filed suit against Oracle, saying in a statement:
“HP is seeking the court’s assistance to compel Oracle to:
Reverse its decision to discontinue all software development on the Itanium platform
Reaffirm its commitment to offer its product suite on HP platforms, including Itanium;
Immediately reset the Itanium core processor licensing factor consistent with the model prior to December 1, 2010 for RISC/EPIC systems
HP also seeks:
Injunctive relief, including an order prohibiting Oracle from making false and misleading statements regarding the Itanium microprocessor or HP’s Itanium-based servers and remedying the harm caused by Oracle’s conduct.
Damages and fees and other standard remedies available in cases of this nature.”
While we are certainly not lawyers, and were not privy to any of the thought processes that went into this decision, several things jump out at us, none of them particularly positive for the long-term outcome for HP or its joint Itanium-Oracle customers:
At this point, the only really win-win situation is for the two parties to come to terms quickly and amicably, but the reality is that Oracle is playing for higher stakes than a win-win because of the potential benefits to their own hardware business if HP is not competing as a platform for Oracle workloads; my opinion is that they will play this out to the bitter end.
Sadly, along with HP’s server business, a whole pile of customers are caught in the middle of this controversy, potentially facing a disruptive forced transition that will add little business value at substantial unexpected cost.
Am I wrong? I’d love to hear your feedback on this.
Additional coverage of this controversy see Oracle Says No To Itanium – Embarrassment For Intel, Big Problem For HP and HP And Oracle Customers React – Not Happy, But Coping.
Lead BT Transformation
Develop customer-obsessed strategies to drive growth »
Forrester's CX Index
Predict how actions to improve CX will affect revenue performance.
Measure the customer experiences that matter most »