Tesco Migrates 40,000 Servers from VMware Amid Broadcom Price Hikes
Tesco, a UK supermarket chain, is replacing 40,000 servers from VMware's infrastructure due to Broadcom's aggressive subscription model, which has led to significant price increases. This move, expected to complete by 2027, is the largest publicly known migration off the platform.
Key points
- Tesco, a UK supermarket chain, is migrating 40,000 servers from VMware's infrastructure.
- The move is in response to Broadcom's aggressive subscription model, which has led to a 175% price hike for VMware and a 350% upcharge for mainframe software.
- Tesco filed a $134-million lawsuit against Broadcom, alleging a breach of contract and non-compliance with competition laws.
- The migration is expected to be completed by 2027, with Tesco naming VMware and Computacenter as defendants in the lawsuit.
- This is the largest publicly known migration off the platform, following a series of price hikes and lawsuits against Broadcom.
Tesco's decision to migrate its servers from VMware's infrastructure marks a significant blow to the company's business model. The move is the latest in a series of high-profile migrations, following a series of price hikes and lawsuits against Broadcom. The UK supermarket chain had reportedly bought perpetual licenses for vSphere Foundation and Cloud Foundation, as well as support services until 2026 with a four-year extension option. However, after Broadcom's acquisition of VMware in 2023, the company stopped offering perpetual licensing in favor of subscriptions, leading to significant price increases for existing customers. Tesco's lawsuit against Broadcom alleges a breach of contract and non-compliance with competition laws, seeking $134 million in damages. The migration is expected to be completed by 2027, with Tesco naming VMware and Computacenter as defendants in the lawsuit.
Sources
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