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Tesco is migrating 40,000 server workloads off VMware infrastructure, a number that signals just how far the British retail conglomerate is willing to go to escape what it calls "abusive conduct" by Broadcom.
The move comes as Tesco's lawsuit against Broadcom proceeds through the United Kingdom's High Court, where the retailer alleges breach of contract over the terms of a virtualization deal struck before Broadcom acquired VMware.
What Tesco Actually Bought — and What Broadcom Refused to Honor In January 2021, Tesco purchased perpetual licenses for VMware's vSphere Foundation and Cloud Foundation products, along with a subscription to VMware Tanzu and support services running through 2026, with a contractual option to extend that support for an additional four years.
The terms were clear at signing. What changed was the counterparty. Broadcom completed its acquisition of VMware in November 2023.
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