News from HPE

Oracle ordered to pay HP $3 billion in Itanium case

The jury today in the case of Hewlett-Packard v. Oracle Corporation decided in favor of HP, awarding the company $3.1B in damages that Oracle will pay for breach of contract. This decision follows a month-long trial in the Superior Court of the State of California, Santa Clara County, stemming from Oracle’s 2011 decision to cease offering its products on HP’s Itanium servers.

"HP is gratified by the jury's verdict, which affirms what HP has always known and the evidence overwhelmingly showed - Oracle's decision to stop future software development on the Itanium server platform in March of 2011 was a clear breach of contract that caused serious damage to HP and our customers,” said John Schultz, Executive Vice President and General Counsel, Hewlett Packard Enterprise. “We very much appreciate the dedication and effort that the jury gave to this case for over 5 weeks of trial."

HP initiated the litigation against Oracle in 2012, claiming that Oracle breached its contractual commitment to HP in discontinuing support for Itanium-based servers—a decision that caused significant monetary damages to HP and unnecessary uncertainty to our shared customers. On August 28, 2012, the Court issued its final statement of decision on the first phase of this bifurcated case, also ruling in favor of HP. The jury verdict in this second phase of the case requires Oracle to pay $3.1B in damages to HP for breach of contract and lack of good faith and fair dealing.