Tesco moving 40,000 server workloads off VMware amid Broadcom's “abusive conduct”
Summary
Tesco is moving 40,000 server workloads away from VMware products after Broadcom took over VMware and refused to honor previous license agreements. Tesco sued Broadcom for breach of contract, claiming Broadcom raised prices unfairly and stopped essential support, forcing Tesco to find costly alternative software.Key Facts
- Tesco bought perpetual VMware licenses and support until 2026, with options to extend support.
- Broadcom acquired VMware in November 2023 and would not honor Tesco’s original license deal.
- Broadcom demanded higher prices and required Tesco to buy new subscription licenses to get support.
- Tesco stopped receiving support from Broadcom in January and has paid third parties for help since.
- Tesco faces operational risks and extra costs due to the forced migration from VMware software.
- The new virtualization software Tesco is moving to does not work with some current data security tools.
- Tesco seeks at least £100 million (about $133.6 million) in damages from Broadcom and others.
- The court case is scheduled to proceed between November 2027 and February 2028.
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