Oracle ordered to pay $4 billion to HPE

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Oracle ordered to pay $4 billion to HPE

A California jury ordered Oracle to pay Hewlett-Packard Enterprise US$3 billion (AU$4 billion) in damages in a case over HP's Itanium servers, an Oracle spokeswoman said on Thursday US time.

Oracle said it would appeal the verdict.

The Itanium processor is made by Intel. Oracle decided to stop developing software for use with HPE's Itanium-based servers in 2011, saying that Intel made it clear that the chip was nearing the end of its life and was shifting its focus to its x86 microprocessor.

But HP said it had an agreement with Oracle that support for Itanium would continue, without which the equipment using the chip would become obsolete.

In the first phase of trial in 2012, Santa Clara Superior Court Judge James Kleinberg ruled that there had been a contract. The jury on Thursday US time decided damages.

In a statement, Oracle general counsel Dorian Daley said the company had been providing all its latest software for Itanium servers since Kleinberg's decision.

"Now that both trials have concluded, we intend to appeal both today's ruling and the prior ruling," Daley said.

Representatives for HP could not immediately be reached for comment.

Reporting by Dan Levine; Editing by Sandra Maler and Leslie Adler

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