When the computer technology corporation Oracle hired HP’s former CEO Mark Hurd, HP contested the decision, raising the issue in court. The dispute was settled in 2010 by the two parties. The terms of the settlement allegedly provided that Oracle would maintain a relationship with HP by continuing to offer their products on HP platforms.

This relationship ended abruptly in March 2011 when Oracle announced that it would no longer support Itanium-based products, and said that the product was on its way out. The statement was not the only of its kind, other software companies — including Microsoft in 2010 and Red Hat in 2009 — made similar statements that they would discontinue supporting Itanium.

HP again disputed this decision in a Santa Clara, California, court. The judge presiding over that case ruled this past week that a contract in fact existed in the settlement that required Oracle to continue support of the Itanium server product. It came down to the fact that the settlement was an official agreement, and the term was included in it. The Wednesday ruling not only benefited HP, but would benefit HP customers who use the Itanium-based servers.

Oracle acknowledged the ruling, but said that it would not change the company’s belief that the Itanium product would not be used in the market for much longer. “HP’s argument turns the concept of Silicon Valley ‘partnerships’ upside down,” a spokeswoman for Oracle said.

Whether it is in settlement negotiations or in an initial contract, this contract dispute shows that every word and term is important.

Source: Datacenter Dynamics, “Judge rules in HP’s favor in Itanium dispute with Oracle,” Yevgeniy, Aug. 1, 2012