Tesco dumps thousands of servers off VMware, blames 'abusive conduct' from Broadcom

Date:
Thu, 18 Jun 2026 09:41:21 +0000

Description:
Broadcom's "abusive conduct" has landed it in hot water as it faces legal action from Tesco and the loss of 40,000 licenses.

FULL STORY ======================================================================Copy link Facebook X Whatsapp Reddit Pinterest Flipboard Threads Email Share this article 0 Join the conversation Follow us Add us as a preferred source on Google Newsletter Subscribe to our newsletter Tesco to move 40,000 of its servers away from VMware Broadcom faces legal action from the UK retailer, which alleges "abusive conduct" HPE recently announced free licenses for affected customers One of Britain's biggest supermarkets, Tesco, is set to migrate around 40,000 servers away from VMware, making it one of the largest publicly disclosed VMware migration projects since the Broadcom takeover.

The news comes as Tesco presses on with legal action against Broadcom in the UK High Court, accusing the company of engaging in "abusive conduct." Tesco alleges the company has refused to continue standalone support for perpetual VMware licenses, and that it's been forced into more expensive subscription bundles. Latest Videos From Watch full video here: Tesco pursues legal action against Broadcom (VMware) Tesco says it purchased perpetual licenses in 2021 with support and software updates until 2026, with the option to extend support for another four years until the end of the decade.

However, due to changes imposed when Broadcom acquired VMware in late 2023, Tesco reportedly faced price hikes of around 175%. You may like HPE will let VMware users get a free year's license via its own tools Europes relationship with US Big Tech has reached a breaking point Nvidia's market cap dropped by almost $330 billion in 24 hours - here's why

The company is now seeking more than 100 million in damages, but as a mark of its dissatisfaction with Broadcom, it's looking to migrate now instead of waiting for the court case's outcome with a deadline of the end of 2027.

It's also had to hire third-party support providers to maintain its VMware environment, it says. Are you a pro? Subscribe to our newsletter Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed! Contact me with news and offers from other Future brands Receive email from us on behalf of our trusted partners
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"Faced with Broadcom's abusive conduct, and given the criticality of virtualization and mainframe software and services to its business, Tesco has been forced to incur material costs to procure alternative solutions with reduced functionality, and to migrate to that software in a manner, and on a timeframe, that creates very significant risks to its business," an extract from the filing reads.

It's unclear what Tesco's next steps are in terms of sourcing an alternative, but the timing is notable. HPE announced this week that it would be offering customers a year's free license to its Morpheus VM Essentials alternative, plus a $1 license for the separate Zerto migration software. Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews, and opinion in your feeds.



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Link to news story: https://www.techradar.com/pro/tesco-dumps-thousands-of-servers-off-vmware-blam es-abusive-conduct-from-broadcom


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