Enterprise

HP To Oracle: You Hurt Our Server Business And Owe Us $4 Billion

Read in app
Larry Ellison
Oracle CEO Larry Ellison  Asa Mathat | All Things Digital

When HP and Oracle were fighting in court last summer over HP's Itanium servers, HP hinted it would come after Oracle for $4 billion.

HP won the suit and is back in court, to hear what damages, if any, it is entitled to get. Sure enough, HP is aiming for $4 billion.

It put an expert witness on the stand who said Oracle cost HP $4 billion to $4.2 billion in business.

The suit concerned Oracle's plans to stop making its flagship database software for HP's high-end, expensive Itanium servers. A California judge ruled in HP's favor and said that Oracle had to continue to make its database products for Itanium.

In a hearing in a Santa Clara, Calif. court today, HP's had an economist testify. He said that the uncertainty caused by Oracle's decision drove customers away, reports IDG News Services' Stephen Lawson.

In the second quarter of HP's 2011 fiscal year, when the fight began, Itanium revenue fell 11 percent from the year prior, HP's expert witness said. The following quarters it fell 18.1 percent, 32 percent and 38 percent from the year-ago quarters.

Oracle's lawyers had a pretty good counter-argument for the falling revenue. They pointed out that during that time HP was undergoing a lot of turmoil, including firing its CEO Leo Apotheker.

Both HP and Oracle declined comment.

Read next

Julie Bort was Business Insider's Editor at Large for the Tech team. She loves investigating stories and shedding light on the tech industry's most amazing people.Here's a small sample of some of Julie's work.Former Pinterest employees describe a traumatic workplace where managers humiliate employees until they cry, Black people feel alienated, and the toxic culture 'eats away at your soul'Sex, tequila, and a tiger: Employees inside Adam Neumann's WeWork talk about the nonstop party to attain a $100 billion dream and the messy reality that tanked itInsiders say WeWork's IT is a patchwork of cheap devices and Band-Aid fixes that will take millions to fixWeWork's toxic phone booths were created in-house by its Powered by We business70-hour weeks and 'WTF' emails: 42 employees reveal the frenzy of working at Tesla under the 'cult' of Elon MuskElon Musk works so many hours at Tesla, employees are constantly finding him asleep under tables and desksHow this woman went from a Pizza Hut employee to a founder of a $4 billion startupAn Oracle insider explains how some salespeople gamed the system to sell more cloudTHE TAKEDOWN OF TRAVIS KALANICK: The untold story of Uber's infighting, backstabbing, and multimillion-dollar exit packagesMicrosoft is in talks to buy GitHub, a startup at the center of the software world last valued at $2 billionThe alarming inside story of a failed Google acquisition, and an employee who was hospitalizedInside Facebook's plan to eat another $350 billion IT marketHow a registered sex offender wound up living in an Airbnb hosting unsuspecting guestsA controversial ex-banker is the person who really runs Twitter — and he's gambling the company's future on one risky betSecret passages and skipped meals: Oracle's CEO gave us a rare peek at what it really takes to run a $37 billion companyHP told some employees to choose between becoming contractors with no benefits or being fired without severance'I felt like we were being extorted': Customer says Oracle tried to strong-arm him into a cloud saleHow the queen of Silicon Valley is helping Google go after Amazon's most profitable businessAirbnb host: A guest is squatting in my condo and I can't get him to leaveLIES, BOOZE, AND BILLIONS: How one of the fastest-growing startups in Silicon Valley history raised $580 million then spiraled out of controlGitHub is undergoing a full-blown overhaul as execs and employees depart — and we have the full inside storyWhen she's not writing for Business Insider, Julie can usually be found on the trails, on my mountain bike, or on my skis, if you know where to look.