Tesco is migrating 40,000 server workloads away from VMware products following allegations of abusive pricing by Broadcom. The UK retailer filed a breach of contract lawsuit in the High Court last year. Recent court filings detail ongoing migration challenges and rejected settlement offers.
Tesco, which reported 73.7 billion pounds in revenue for fiscal 2026, purchased perpetual VMware licenses in January 2021 that included support until 2026. Broadcom's acquisition of VMware in November 2023 led to disputes, with the retailer claiming Broadcom refused to honor the original terms and demanded significantly higher payments.
In January 2026 Broadcom ended support for Tesco's VMware products. The company has since paid for third-party support and begun moving workloads to alternatives, though it faces compatibility issues with its existing data protection tools.
Tesco rejected multiple offers from Broadcom, including one priced at 17.6 million pounds for a year of services that it described as 175 percent above expected costs. The case is scheduled for court hearings between November 2027 and February 2028.
