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Oracle Ordered To Pay $3B Damages To HP (bbc.com)

Oracle has been ordered to pay HP $3 billion in damages by a California jury over HP's claim that Oracle reneged on a deal to support HP computer servers running on Itanium chips from Intel. Oracle said it will appeal. BBC reports:The court battle over the contract was settled in 2012 but the damages HPE was due have only now been agreed. HP was split into two in 2015 with HPE taking over the running of its servers and services business. In court, HPE argued that although the 2012 legal judgement meant Oracle had resumed making software for the powerful chips, its business had suffered harm. It argued that Oracle took the decision in 2011 to stop supporting Itanium in a bid to get customers to move to hardware made by Sun -- a hardware firm owned by Oracle. Oracle said that its decision in 2011 was driven by a realisation that Itanium was coming to the end of its life. It also argued that the contract it signed never obliged it to keep producing software in perpetuity. Intel stopped making Itanium chips in late 2012 and many companies that used servers built around them have now moved to more powerful processors.

47 comments

  1. Couldn't have happened to a nicer company by Anonymous Coward · · Score: 4, Funny

    /s

    1. Re:Couldn't have happened to a nicer company by thoromyr · · Score: 2, Interesting

      Exactly my thought. In Oracle's defense, it was clear in 2001 that Itanium was dying. You could hear the Monty Python dialog, "I'm not dead yet!" but despite the protestations the writing was on the wall. AMD proved you didn't need a completely incompatible system in order to move forward to a 64-bit architecture.

      You almost wonder about the choice of name as Itanium is close to Titanic, which is about the size of its failure.

    2. Re:Couldn't have happened to a nicer company by HornWumpus · · Score: 3, Informative

      The fact you're not going to make any money, doesn't get you out of contracts.

      Oracle should have just continued supporting it badly and let performance whack Itanium on the head.

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    3. Re:Couldn't have happened to a nicer company by Tharkkun · · Score: 1

      The fact you're not going to make any money, doesn't get you out of contracts.

      Oracle should have just continued supporting it badly and let performance whack Itanium on the head.

      It's not Oracle's fault that HP was holding onto dear life rather than innovating by moving to new hardware. Everyone else saw the writing on the wall except HP themselves. One of the many reasons they can't keep a CEO to save their life.

    4. Re:Couldn't have happened to a nicer company by surfdaddy · · Score: 1

      Karma is a bitch sometimes.

    5. Re:Couldn't have happened to a nicer company by mwvdlee · · Score: 1, Interesting

      The only thing AMD proved is that you could glue 64-bit operands onto a 32-bit processor and that people cared more about running their old software slightly faster than running future software much faster. Thanks to AMD, we're still stuck with one of the first and worst CPU architectures imaginable. The only reason x86/x64 can outperform competitors is due to huge research budgets pushed into eaking out increasingly smaller improvements. It required an entirely new market to give ARM the inroads it needed to start throwing around large research budgets too. I suspect at some point ARM will move onto the desktop (Microsoft-willing) and then Intel can finally start retiring their x86-limited CPU.

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    6. Re:Couldn't have happened to a nicer company by cmdr_klarg · · Score: 1

      You almost wonder about the choice of name as Itanium is close to Titanic, which is about the size of its failure.

      Hence the nickname "Itanic"

      --
      THE SOFTWARE, IT NO WORKY!!!
    7. Re:Couldn't have happened to a nicer company by HornWumpus · · Score: 4, Insightful

      It is however Oracle's fault they signed a contract to support Itanium then didn't.

      HP is done. Dividend out the 3 billion, sell the server business, drive a stake through the heart of what's left of EDS and close.

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    8. Re:Couldn't have happened to a nicer company by Anonymous Coward · · Score: 0

      That's why it was called the Itanic back in the day.

    9. Re:Couldn't have happened to a nicer company by LWATCDR · · Score: 4, Informative

      Not really fair since the Itanium had lots of performance issues from the start. It depended on smart compilers that just did not work. It's one advantage was a large memory space and AMD took that away. It was one of two big fumbles that Intel made at the time, the other was Netburst.
      Yes people and companies usually want to buy a computer to run software, not software that may more may not exist in the future. I would love to see Intel for their Atoms drop the x86/286 support just to clean things up but I hear that really will not save much space on the die so it may not be worth it.
      Of course if Motorla had an inexpensive 68000 available and IBM had used it in the PC we would all have been much better off. The same is true if Apple, Atari, and Commodore had use the 6809 but the 6502 was also cheaper.

      --
      See my blog http://ilovecookes.blogspot.com/ for light hearted technical information.
    10. Re:Couldn't have happened to a nicer company by DarkOx · · Score: 4, Interesting

      Come on now, this is not the days of the 80486 anymore. There is no x86 architecture, only an x86 instruction set which although has some warts really isn't bad, its main problem, insufficient registers is addressed completely by x64 variant (thanks AMD). All modern x86/x64 CPUs use a very RISC like architecture, or micro architecture if you prefer, and basically translate the CISC x86 instructions to multiple micro instructions on the backend, the decoder being simpler and faster than most of the rest of chip means there is basically no penalty here, it just isn't bottleneck not in terms of die space, not in terms of clock speed capability.

      Rest assured when you a single ARM core approaching anything near the performance of its top drawer x86/x64 counter parts it will be because the that chip has become more like today top line x86/x64 parts in just about every way except perhaps the exposed ISA.

      TL;DR - x64 has nothing to do with that first and worst architecture, other than some legacy but more or less virtual instructions.

      --
      Repeal the 17th Amendment TODAY! Also Please Read http://www.gnu.org/philosophy/right-to-read.html
    11. Re:Couldn't have happened to a nicer company by TJ_Phazerhacki · · Score: 1
      I hear what you are saying, but it's important to remember that in business, the 'best' platform isn't always the one with the most technical merit - it's the one that the most people use. Sure, if everyone was willing to work a little bit and totally refactor/redesign stuff, the handicaps they are building around could be avoided entirely. But the cost/benefit (especially over the short term) just isn't there.

      Intel seems to have seen the writing on the wall finally; you aren't going to be able to charge a premium for marginal performance gains in any kind of volume for very much longer, and it's going to be very difficult to justify building a new mask for a few thousand gamers and HPC users. And of course, that 'entirely new market' you are talking about for ARM includes Mobile, which is probably the biggest thing for chip dev since people started buying desktops.

      --
      Physics is nothing like religion. If it was, we'd have an easier time trying to raise money!
    12. Re:Couldn't have happened to a nicer company by DivineKnight · · Score: 1

      "The fact you're not going to make any money, doesn't get you out of contracts."

      Actually, according to contract law...

    13. Re:Couldn't have happened to a nicer company by Anonymous Coward · · Score: 0

      Oracle is screwed over by a contract? Wow. Oracle is usually the only one getting to do the screwing.

    14. Re:Couldn't have happened to a nicer company by HornWumpus · · Score: 1

      There has to be consideration...that doesn't in any way guarantee things will work out profitably for anybody involved.

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    15. Re:Couldn't have happened to a nicer company by Anonymous Coward · · Score: 0

      2000 called and they want their completely debunked idea back.

      We're not "Stuck" with x64 because of some imagined slight or back room deal.

      Turns out piles of cheap cpus that eventually pick up the features that were exlusive to big iron yesterday is a much better plan than monolithic systems with "Elegant" instruction sets.

      Why? Software is shit. All of it. Programmers are bullshit artists next to hardware engineers and you're wasting your time building a perfect system. Nobody will every write perfect software for it. Intel's magic compiler for Itanium never manifested. While you're wasting time everyone else is working, making money, selling prodcuts.

      Whoever is best at running shit code the cheapest wins. And that's Intel.

      Arm may make inroads, but not because of its supposed elegance or superiority, but for business model reasons. Arm's business model of lisencing cores and IP works for the mobile device sector. Intel's business model of selling fixed parts does not. Will arm's model work in the server and desktop world?

      The market will decide.

      Just like with Alpha. And MIPS. And Itanium. And SPARC. And PA-RISC. And PPC. And SH3. - The computing world is littered with dead or dying architectures "superior" to x86.

    16. Re:Couldn't have happened to a nicer company by Anonymous Coward · · Score: 1

      Please, let's not forget that HP had the leading RISC 64-bit computing platform, ALPHA, and shit-canned it in favor of the Itanium product.

      This negative outcome was based on HP leadership having a basic technological understanding and favoring a immature product over a proven one (that also had a long-term roadmap)

      fwiw, any company that makes a bone-headed move like dumping Alpha for itanium, then attempts to hide performance results showing that Alpha clearly outpaced Itanium, deserves to be left in the dust by any "partner" that is concerned with customer support

    17. Re:Couldn't have happened to a nicer company by sjames · · Score: 1

      Much faster? Not with Itanic. It couldn't even outrun their 32 bit processors. Nobody was going to pay 2-7K/CPU for something that couldn't even outrun Grandma's ePC.

      OTOH, ARM really does have a chance.

    18. Re:Couldn't have happened to a nicer company by red_dragon · · Score: 1

      It depended on smart compilers that just did not work. It's one advantage was a large memory space and AMD took that away. It was one of two big fumbles that Intel made at the time, the other was Netburst.

      Intel had already ventured into the depend-on-smart-compilers rabbit hole before IA64 and Netburst with the 432, a ridiculous 32-bit stack-based object-oriented processor released before the 80386. The 432 failed, in part, because none of the compilers available for it could optimize code sufficiently well to work around its many crippling features (16-bit ALU, 16-bit data buses, 16-bit segment offsets, slow clock speeds) and it ended up slower than the 8086.

      Of course if Motorla had an inexpensive 68000 available and IBM had used it in the PC we would all have been much better off.

      Indeed.

      The same is true if Apple, Atari, and Commodore had use the 6809 but the 6502 was also cheaper.

      Not quite. Yes, it was cheaper, but the 6502 was by all accounts just as good as the 6809. Nevertheless, Apple, Atari, and Commodore all ended up migrating to the 68000 family in the end with the Lisa/Macintosh*, ST/TT/Falcon, and Amiga.

      * the II GS was a dead-end

      --
      In Soviet Russia, Jesus asks: "What Would You Do?"
    19. Re:Couldn't have happened to a nicer company by HornWumpus · · Score: 1

      Alpha...DEC Alpha.

      Wasn't DEC dead and gone and the Alpha team working for Intel by this time?

      There was a day I would have walked through fire for an Alpha workstation. What was the highest it ever clocked?

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    20. Re:Couldn't have happened to a nicer company by TheSunborn · · Score: 1

      But Oracle signed no such contract. Which is what makes this so funny :)

    21. Re:Couldn't have happened to a nicer company by StormReaver · · Score: 3, Interesting

      The same is true if Apple, Atari, and Commodore had use the 6809 but the 6502 was also cheaper.

      I know this is off-topic: I programmed assembler for the 6809, and that thing was a workhorse for its era. It's instruction set was well thought out, and its indexing modes were awesome.

      Then I entered the Intel world. Blech!

    22. Re:Couldn't have happened to a nicer company by Anonymous Coward · · Score: 0

      The EV7z was a life extender version that clocked at 1.3 GHz in 2003

      The bulk of the DEC team went to Compaq and then HP. Part of the Itanium deal was to hand over significant portions of Alpha IP to Intel, along with the team from DEC. To a great extent this resulted in many Alpha features ending up in Itanium2

      Samsung also ended up with some amount of Alpha expertise since they partnered with Compaq in a company called Alpha Processor Inc

      In 2014 I was at a company still utilizing HP Alphas (and Storage Works arrays running a form of VMS), which were still under support contracts with HP

    23. Re:Couldn't have happened to a nicer company by konohitowa · · Score: 1

      Well thought out because they came from the PDP.

    24. Re:Couldn't have happened to a nicer company by jon3k · · Score: 1

      Calling them "Itanics" has been a long running joke.

    25. Re:Couldn't have happened to a nicer company by Anonymous Coward · · Score: 0

      1300MHz, says wikipedia. Also an up-to-2GHz part that got cancelled.

      Oh, and there was PA-RISC (..1100MHz), which wasn't too shabby either. So we have one company that managed to fumble two in-house architectures then bet the shop on vapourware-dependent third-party hardware that couldn't deliver.

      Thanks, Carly.

    26. Re:Couldn't have happened to a nicer company by Anonymous Coward · · Score: 0

      But, but, horizontal integration was all the rage... So, it looked like a no-brainer to let Intel take the lead on chip design so that HP could sit back and sell toner cartridges

      At least that seems to be what Carly was thinking, and that is why we cannot have nice things... fricking MBAs acting like lemmings because some company some-where made it work

    27. Re:Couldn't have happened to a nicer company by armanox · · Score: 1

      Heh...I learned to type on an Apple II/GS

      --
      I'm starting to think GNU is the problem with "GNU/Linux" these days.
    28. Re:Couldn't have happened to a nicer company by Anonymous Coward · · Score: 0

      2000 called and they want their completely debunked idea back.

      I wouldn't call that "debunked". It's much like the elsethread-mentioned "horizontal integration", only we aren't noticing that our spectacular failures are in fact failures. We're seeing them as business opportunities to, er, try and fix in software, or something to that tune. That's "good for the economy" in the same way that the military-industrial complex is, or is not, depending on your viewpoint. The latter has been around for a while, even as we're slowly getting sick of it (and finding we can't quite get rid of it now).

      Turns out piles of cheap cpus that eventually pick up the features that were exlusive to big iron yesterday is a much better plan than monolithic systems with "Elegant" instruction sets.

      A much more affordable plan, as it seems to tech-illiterate purchasers, who'll also pick and choose the software, apparently entirely on the basis of how smarmy the sales...person was at their last lunch.

      Why? Software is shit. All of it.

      Not quite all of it, but the most dominant "stacks" of software certainly are smelly, if not individual parts too much if you pinch your nose, then certainly the entire thing. Why this is so is perhaps interesting for sociologists to figure out, since it's not really all that inherently technical.

      Programmers are bullshit artists next to hardware engineers and you're wasting your time building a perfect system.

      Heavily influenced by perceived costs. It's fairly interesting which costs are also there but not perceived.

      The market will decide.

      The free market theory conveniently presupposes knowledge parity among the acting parties, as well as relatively straight-forward individual issues. What we're seeing is massive complexity and information assymetry. So it's not surprising the "winner" is not the best on quite a large number of metrics you could come up with.

      Just like with Alpha. And MIPS. And Itanium. And SPARC. And PA-RISC. And PPC. And SH3. - The computing world is littered with dead or dying architectures "superior" to x86.

      MIPS and POWER (and ARM) have their niches, that happen to not be the highly visible mass desktop and the somewhat less visible mass server market. In sheer numbers there's quite a few of them, though they don't command much markup apiece. SPARC is still in use. No idea about SuperH, though if wikipedia is to be believed, there's opportunities there also. Alpha and PA-RISC got killed by executive decision to chase a dead-end fad. Turns out alpha isn't quite dead yet after all.

      POWER, in fact, just made inroads into specialty server markets outside its mainframe domain. We'll see if that flies--it has a couple features that neither intel nor AMD can deliver, which are nonetheless sought-after in certain markets.

      So, with most of those architectures not actually dead, the thing is, the "superiority" is technical, and then it turns out that the people procuring the things are interested in something else entirely. So they buy that instead, and get nickled-and-dimed for it, too. Where that something else is not important, for example because the decisions are driven by engineers speccing out their needs and not tech-illiterate executives chatted up by salesmen, things look entirely different. Whodathot?

      The good news is both that the something else is diminishing in perceived importance and that implementing alternatives is becoming easier in some senses. The duopoly only set us back a couple decades. Only.

    29. Re:Couldn't have happened to a nicer company by LWATCDR · · Score: 1

      I thought that a lot of the Alpha team went to AMD.

      --
      See my blog http://ilovecookes.blogspot.com/ for light hearted technical information.
    30. Re:Couldn't have happened to a nicer company by LWATCDR · · Score: 1

      " but the 6502 was by all accounts just as good as the 6809."
      I suggest you take a look again. The 6809 was a much better cpu than the 6502. Just take a look at OS/9.

      The Commodore 64 and the Atari where very good because of the advanced sound a graphics chips that they use. The Coco was stuck with less advanced sound and graphics chips but a better CPU so the sort of equalled out.
      The Apple II had the Woz.

      The Apple II gs and the Commodore 128 where the ultimate 8 bit machines I would not call the IIgs and dead end as much as the end of the line. I would have liked to see a Commodore 256? that used the 65816 and HD64180 CPUs. No one would have bought it but it would have been cool. Maybe someday someone will make one using an FPGA.

      --
      See my blog http://ilovecookes.blogspot.com/ for light hearted technical information.
  2. Oracle is evil. Enough said. by Anonymous Coward · · Score: 0

    If Oracle can be made to pay fines for it's ability to push the limits of capitalism into the grey area of criminal activity, then this is a good thing.

    I once work for Oracle, after 6 months, I went looking for a new job. Sun hired me. When Oracle acquired Sun, I quit working at Sun/Oracle.

    Oracle on the Sales, Marketing, Management side is just people that have no moral compass other than me, me, me.

    The Engineers, I am disappointed in, but they also are me, me, me.

  3. So why did it take 2 years? by Anonymous Coward · · Score: 0

    So why did it take 2 years?
    The judge has been too patient and lenient.
    Wasted time and delayed punishment usually result in the beast/child not associating negative consequences with the
    causal action...

    Spank them! Fast, before they can deal for justice.

  4. Re:HP should have used Apps! by Anonymous Coward · · Score: 0

    Never stop, ever.

    You are the wind beneath my wings app.

  5. Re:Oracle is evil. Enough said. by TangoMargarine · · Score: 1

    The Sun engineers who mostly quit en masse during the acquisition?

    --
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  6. Re:Oracle is evil. Enough said. by Anonymous Coward · · Score: 0

    Sure, but don't forget that Sun bit the big one because their sales people would not sell x86/64 products because they got a bigger margin on the Enterprise server gear.

    Customers would not buy a ton of big iron when a little big iron and a shit-ton of cheap x86/64 gear would fit the job just as well and cost a lot less money

    Sun sales execs bear just as much responsibility as anybody for the situation that you faced at Sun

  7. Bah. by Anonymous Coward · · Score: 0

    I honestly don't care that oracle has to bleed, for a number of reasons. In fact perhaps it is deserved in some way. But I'm actually miffed hp is getting the proceeds.

    PA-RISC and Alpha AXP are missed. itanic is not.

  8. Cost recovery? by Anonymous Coward · · Score: 0

    According to wikipedia, "According to Gartner Inc., the total number of Itanium servers (not processors) sold by all vendors in 2007, was about 55,000".
    Unless a zillion Itanium processors (not servers) were sold, how do the damages add up to 3B?

  9. Oracle's legal team is in for a scourging by LichtSpektren · · Score: 1

    Between this, losing the Java case, and the whistle being blown on their cooked accounting books, it really seems like Oracle's legal department's about to get tied to a pole and whipped until bloody by Ellison until they've expiated their failures.

    1. Re:Oracle's legal team is in for a scourging by Anonymous Coward · · Score: 0

      Really can't blame the (different) legal teams for a bad hand they were dealt.

  10. Chinese Alpha? by emil · · Score: 1

    The recent "Subway" supercomputer cluster is supposedly based on an Alpha 21164 design. https://en.m.wikipedia.org/wik...

    1. Re:Chinese Alpha? by Anonymous Coward · · Score: 0

      I looked at the wiki page it left me doubting, then I found this article:

      "After over a decade of work and three generations of CPUs, Jiangnan Reseach Lab has shown the ShenWei (Sunway) SW-3 processor, the Chinese flavour of Alpha, not in a small workstation, not in a server, but in no less than a huge petaflop-class supercomputer machine in Jinan, Shandong – the Sunway BlueLight MPP, this past October. The CPU itself runs for over a year in a variety of systems, but displaying it running a petaflop machine was probably the best PR one could get, especially since foreign supercomputing dignitaries such as Jack Dongarra, the man behing TOP500 list and Linpack FP benchmark."
      http://vr-zone.com/articles/chinese-high-end-cpus-are-now-in-the-game-details-part-2-alpha/14347.html#ixzz4DD6kGTTL

      The good news for DEC fans is that their legacy lives on and is still kicking ass
      The bad news for Capitalism is that the "invisible hand" failed to select the best technology and it took a "Controlled Economy" to pick it up for a song and kick our ass with it

  11. Re:Oracle is evil. Enough said. by Anonymous Coward · · Score: 0

    Sun's sales organization may have been dysfunctional, but that isn't what killed them. Sun had a broken business model. They depended on selling high margin hardware (e.g. original SUN workstations and then SPARC servers), and that market was disappearing. X86 caught up. Sun couldn't compete with commodity hardware that was "almost as good" as SPARC, but cost half as much. Also, Sun couldn't support their cost structure by selling X86 servers -- it wouldn't have mattered if the sales org was totally dedicated to X86 and sold tons of them.

  12. Why HP went with Itanium over Alpha and PA RISC by Anonymous Coward · · Score: 2, Insightful

    HP owned Alpha and PA RISC, both respectable established architectures. Alpha in particular gets a lot of praise.

    So why did HP dump them for Itanium? Simple answer: Because it was going to cost too much to stay competitive.

    HP couldn't afford to keep designing their own processors. Designing high end processors is expensive, and the costs were escalating. HP would need to spend hundreds of millions (if not over a billion) dollars on R&D. And the spending never stops. Processor designs have a limited lifespan -- you've only got a few years before the competition leapfrogs you. HP realized they couldn't sell enough servers to cover those costs.

    Itanium turned out to be a complete disaster. "cluster fuck" doesn't even begin to cover it. But that doesn't mean HP was wrong to ditch Alpha and buy processors from a processor company. You need to make decisions about these things years in advance. We can look back now and say that Itanium was an eipc failure, and wonder how HP could have been that dumb. But that's not how it works. At the time the decision had to be made, it wasn't unreasonable.

    P.S. Despite being direct competition to Itanium, HP was an early supporter of the AMD x64 architecture. HP sold lots of servers with AMD Opteron and Intel Xeon processors, and helped push commodity servers to 64 bits.

    P.P.S. I don't know anything about the legal merit of HP's case against Oracle. I do know that Larry Ellison and Oracle deserve to get kicked in the nuts as often as possible. So I'm happy they have to pay $3B to HP.

  13. I'd seen that by Anonymous Coward · · Score: 0

    In one sense I like that a lot. In another, not so much.

    The problems are that all the documentation will be in Chinese, and for all their totalitarian control they have quality and other control issues that mean there may well be backdoors in there. Even the USG plays dirty tricks in that space, and they're supposed to have some compunction about diddling hardware, where the Chinese clearly have none at all, and manage to be a lot less open about it.

    I would probably sooner trust a SPARC64 VIIIfx ("K computer" cpu) than this one. So in one sense this SW-3 is pretty cool indeed, but then there's the trust issues and the language barrier. And, of course, much like the VIIIfx, the cpu likely won't be available for server or desktop use, n'mind laptop use.

    On another note, it might be interesting to see what'd happen if we could run this cpu on the K computer's Tofu interconnect, as that was what allowed the K computer to run at very high efficiency.

    It does answer a question that I've been wondering about, whether alpha would still perform when (re)implemented on a modern process. The answer looks to be "it'd still kick arse", so that's nice to know. Too bad nobody will actually get to use it except a few academics.

  14. Re:Oracle is evil. Enough said. by Anonymous Coward · · Score: 0

    Intel stopped selling Itanium chips in 2012, but somehow Oracle is still supposed to keep supporting these chips forever? HPE is evil and trying to recoup treasures from a sunken ship.