Oracle (ORCL) Latest to Abandon Intel's (INTC) Itanium

Oracle Corp. (NASDAQ:ORCL) announced today it will no longer work on software development on Intel Corp.'s (NASDAQ:INTC) Itanium microprocessor.

According to Oracle, after numerous conversations with Intel senior management, they felt Intel's strategic focus "is on their x86 microprocessor and that Itanium was nearing the end of its life."

Paul Otellini, president and CEO of Intel, refuted those conclusions, saying in a press release, “Intel’s work on Intel Itanium processors and platforms continues unabated with multiple generations of chips currently in development and on schedule. We remain firmly committed to delivering a competitive, multi-generational roadmap for HP-UX and other operating system customers that run the Itanium architecture.”

Oracle pointed out that RedHat and Microsoft (NASDAQ:MSFT) have both stopped developing software for Itanium as well. The company also noted that Leo Apotheker, chief executive officer of Palo Alto-based Hewlett-Packard Co. (NYSE:HPQ), "made no mention of Itanium in his long and detailed presentation on the future strategic direction of HP."

Oracle was trading at $31.55, gaining $0.42, or 1.37 percent, as of 1:52 PM EDT. Intel was trading at $20.23, up $0.08, or 0.42 percent.

Hewlett Packard (HPQ) Generates Confidence with Cloud Strategy

Hewlett Packard's (NYSE:HPQ) CEO Leo Apotheker in his media event Monday generated some confidence in his strategy to get the company growing again, especially with his cloud computing strategy.

"In his first major public speech since being named to the top HP spot in September, gave his answer to a gathering of press and analysts in San Francisco Monday afternoon. During a presentation that lasted a bit over 30 minutes, Apotheker outlined three major areas of focus for HP in the coming months and years: Cloud computing, a wide variety of Internet-connected hardware for consumers and businesses alike, and software, including pushing HP's (formerly Palm) webOS to hundreds of millions of PCs, tablets, printers and smartphones. The financial upside of this three-pronged strategy, according to HP CFO Cathie Lesjak, will be $7 per share in earnings (non-GAAP) by 2014.

The early word in the hallway filled with financial analysts was mostly good. What drew most of the attention was the public cloud Apotheker announced. With his cloud strategy Apotheker is steering the company away from direct competition at the high-end from the likes of IBM (IBM) and Oracle (ORCL), towards serving large companies and governments customers with less mission critical applications, and small and medium businesses all over the world with just about everything. "It's smart," says Cowen & Co. analyst Peter Goldmacher, "The growth at the top is finite, it's single digits, and that game is over. HP is going where the growth is."

HP was trading at $40.73, down $0.76, or 1.83 percent, as of 1:32 PM EDT.




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Hewlett-Packard (HPQ) Boosting Dividend, First Time in Decade

For the first time in over a decade, Hewlett-Packard Co. (NYSE:HPQ) announced it'll be raising its dividend. The company also said it plans on rolling out a "cloud computing" services soon for the general public.

New CEO Leo Apotheker, for the first time since taking over for Mark Hurd, presented his strategy and outlook to industry analysts and reporters.

Other than presenting what he termed the "public cloud," there were few other specific details during his presentation, as far as something not communicated before.

As for the dividend boost, chief financial officer, Cathie Lesjak, said it'll increase to 12 cents a share, up from the current 8 cents a share in place since 1998. Lesjak said the official declaration of the dividend should come in May from the board of directors.

She added the company plans on raising the dividend by double-digits every year going forward.

As for earnings, Lesjak has a target of a minimum of $7 a share, excluding items, by 2014. In the last fiscal year the company earned $4.58 a share.

Hewlett-Packard closed Monday at $41.49, falling $0.16, or 0.38 percent.

Hewlett-Packard's (NYSE:HPQ) Should Continue Unhindered

Seeing little if anything that can deter the accelerated growth of Hewlett-Packard (NYSE:HPQ), Needham & Company said they're maintaining a "Strong Buy" on the company.

Needham said, "A vast product portfolio. Unmatched global channel reach. A streamlined operating cost structure with a path for further improvement. A powerful balance sheet providing liquidity simultaneously for internal growth, acquisitions, buybacks and dividends. These dynamics make HPQ a unique juggernaut in the tech world, and one that cannot be easily jarred even by the loss of a CEO. While we watch with interest for how Leo Apotheker will imprint his vision on HP’s strategy, in the interim, we see little to detract from the company’s growth prospects."

The market seemed to agree with them Tuesday, as Hewlett closed at $44.19, gaining $0.94, or 2.17 percent.

Volume soared to over $51 million, more than double the $23 million 3-month daily average. Hewlett's market cap is just over $100 billion as of Tuesday.