Tesco Sues Broadcom Over VMware Changes, Migrates 40,000 Servers
UK supermarket giant Tesco is suing Broadcom for over £100 million, alleging "abusive conduct" following Broadcom's acquisition of VMware. Tesco claims forced price hikes and bundled subscriptions led to migrating 40,000 servers off VMware by 2027, seeking damages for the disruption.
Key points
- Tesco, a major UK retailer, is suing Broadcom in the UK High Court for over GBP 100 million.
- The lawsuit alleges "abusive conduct" by Broadcom after its acquisition of VMware, including significant price increases and forced bundling of services.
- Tesco claims it purchased perpetual VMware licenses in 2021 with support until 2026, but faced around 175% price hikes under Broadcom.
- The company is migrating approximately 40,000 servers away from VMware, with a deadline of the end of 2027.
- Tesco is incurring costs for third-party support for its existing VMware environment during the migration.
British supermarket chain Tesco has initiated legal proceedings against Broadcom, seeking over £100 million in damages. The company accuses Broadcom of "abusive conduct" following its acquisition of VMware in late 2023.
Tesco, which previously purchased perpetual VMware licenses with support extending until 2026, claims Broadcom imposed drastic price increases of approximately 175% and forced customers into more expensive subscription bundles. According to Tesco, Broadcom also refused to continue standalone support for the existing perpetual licenses.
As a result of these changes, Tesco is undertaking a massive migration of around 40,000 servers away from VMware technology. The company has set a deadline of the end of 2027 to complete this transition. While the legal case proceeds, Tesco is reportedly using third-party support providers to maintain its current VMware infrastructure.
Sources
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