Tesco moving 40,000 server workloads off VMware amid Broadcom's “abusive conduct”

Date: 2026-06-18 15:19:19 Source: XHS Network Report Author: React

Tesco, a retail conglomerate headquartered in the United Kingdom, is moving 40,000 server workloads off of VMware amid "abusive conduct" from Broadcom, recent legal filings claim.

Tesco filed a lawsuit in the UK’s High Court against Broadcom alleging breach of contract last year. According to a September report from The Register, the lawsuit claimed that in January 2021, Tesco bought perpetual licenses for VMware’s vSphere Foundation and Cloud Foundation, a subscription to VMware Tanzu, plus support services until 2026, with the option to extend support for four additional years.

But when Broadcom took over VMware in November 2023, it would not honor the deal and instead tried to get Tesco to pay “excessive and inflated prices for virtualization software for which Tesco has already paid” and would not allow it to buy support services for its perpetually licensed software without buying “duplicative subscription-based licenses for those same Software products," the initial complaint read, The Register reported at the time.

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