Bloomberg News

Hewlett-Packard Unveils Faster Servers With Itanium Chips

November 08, 2012

Hewlett-Packard Co. (HPQ:US) showed new computer servers based on Intel Corp. (INTC:US)’s Itanium chip that deliver faster processing while consuming less power, even as the computer maker moves customers to a different technology platform over time.

Hewlett-Packard introduced new servers that plug into its Superdome 2 and BladeSystem chassis, and an entry-level machine for smaller companies. The hardware -- along with advances in Hewlett-Packard’s HP-UX operating system software -- can process computing transactions as much as three times faster than previous Itanium-based servers while using less energy, the Palo Alto, California-based company said in a statement.

The unveiling comes as Hewlett-Packard, which supplies servers, data storage devices and networking equipment to businesses, has seen revenue (HPQ:US) from its Business Critical Systems line dry up since business software maker Oracle Corp. (ORCL:US) said last year it planned to stop developing database software that runs on the Itanium chip. Sales of Business Critical Systems dropped 16 percent to $385 million in the fiscal third quarter that ended in July.

Meg Whitman, Hewlett-Packard’s chief executive officer, is trying to restore growth at the company, whose sales are expected to drop 5 percent this year and next, according to the average estimate of analysts surveyed by Bloomberg. At an Oct. 3 meeting with financial analysts, Whitman said earnings next year would be far lower than analysts had expected.

Hewlett-Packard a year ago revealed a plan that would give customers running Itanium servers -- which include banks and telephone companies -- a path to move their programs to Intel’s more widely used Xeon chips in coming years.

Customers will also be able to move those applications to Microsoft Corp. (MSFT:US)’s Windows and Red Hat Inc. (RHT:US)’s Linux operating systems. The advancements in the new servers and software will “cascade” to more Xeon-based servers running Windows and Linux over time, Hewlett-Packard said.

A California court in September ordered Oracle to keep developing software for Itanium after Hewlett-Packard sued Oracle in 2011 for contract violation.

To contact the reporters on this story: Aaron Ricadela in San Francisco at

To contact the editor responsible for this story: Tom Giles at

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  • INTC
    (Intel Corp)
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