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Oracle Ordered to Pay HP Enterprise $3 Billion

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June 30, 2016, 8:03 PM ET
Key Speakers At The Oracle OpenWorld 2014 Conference
Larry Ellison, chairman of Oracle Corp., speaks during the Oracle OpenWorld 2014 conference in San Francisco, California, U.S., on Tuesday, Sept. 30, 2014. Oracle Corp. joins the cloud wars for commodity services that are being waged between Amazon, Microsoft and Google -- the three largest cloud providers. Photographer: David Paul Morris/Bloomberg via Getty ImagesBloomberg Bloomberg via Getty Images
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(Reuters) – A California jury ordered Oracle to pay Hewlett-Packard Enterprise $3 billion in damages in a case over HP’s Itanium servers, an Oracle spokeswoman said on Thursday.

Oracle said it would appeal the verdict.

The Itaniuum processor is made by Intel (INTC).

Oracle (ORCL) decided to stop developing software for use with HP’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 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 (HPE) could not immediately be reached for comment.

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