Tesco migrates server workloads away from VMware following litigation against Broadcom
The UK retailer is moving 40,000 server workloads to new infrastructure following a legal dispute over licensing costs. The move follows allegations in court filings regarding significant price increases after Broadcom acquired the software firm.
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The UK retail group Tesco is migrating approximately 40,000 server workloads away from its VMware infrastructure. This transition follows a legal dispute with Broadcom, which acquired the virtualization software company and introduced new licensing models.
In filings submitted to the High Court in the United Kingdom, Tesco has alleged that Broadcom engaged in "abusive conduct" regarding contract terms. According to reporting by Ars Technica and Tom's Hardware, the retail group claims that Broadcom increased prices for VMware vSphere Foundation by roughly 175 percent.
The dispute originated last year when Tesco filed a lawsuit alleging a breach of contract. The company had originally purchased perpetual licenses for the software in early 2021. Reports from The Register indicate that the shift toward an aggressive subscription model following Broadcom's acquisition prompted the retailer to seek alternative infrastructure for its server workloads.