Tesco Migrates 40,000 Workloads Off VMware Amid Legal Dispute with Broadcom

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Tesco Migrates 40,000 Workloads Off VMware Amid Legal Dispute with Broadcom

First seen 18 Jun 2026, 07:43 UTC • •51.9

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ThreatCluster •June 19, 2026 at 06:24 UTC

•Tesco is moving 40,000 server workloads off VMware due to Broadcom's alleged abusive conduct.
•The retailer claims Broadcom breached contract terms regarding support and licensing agreements.
•Tesco faces operational risks and data security challenges during the migration process.

Tesco is transitioning 40,000 server workloads away from VMware due to alleged abusive conduct by Broadcom. The UK retail giant filed a lawsuit against Broadcom, claiming breach of contract after Broadcom refused to honor a 2021 agreement for perpetual licenses and support services. Tesco's lawsuit, initiated in mid-2025, alleges that Broadcom's actions forced it to incur significant costs for third-party support and alternative solutions. The supermarket aims to complete the migration by the end of 2027, but faces operational risks and data security challenges due to incompatibilities with existing tools. Tesco has rejected multiple offers from Broadcom to continue using its products. The case is set to be heard in the UK's High Court starting November 2027.

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Timeline

2021-01-01

Tesco acquires VMware licenses

Tesco purchased perpetual licenses for VMware's vSphere Foundation and Cloud Foundation, along with support services until 2026.

2023-11-01

Broadcom acquires VMware

Broadcom's acquisition of VMware leads to changes in support and licensing practices affecting Tesco.

2025-06-01

Tesco files lawsuit against Broadcom

Tesco sues Broadcom for breach of contract, alleging refusal to provide support for VMware products.

2026-01-29

Broadcom stops supporting Tesco's VMware products

Broadcom ceases support for Tesco's VMware products, prompting Tesco to seek third-party support.

2026-06-17

Tesco accelerates migration from VMware

Tesco announces plans to migrate away from VMware and Broadcom products, citing significant operational risks.

2027-11-01

Court hearing scheduled

The UK's High Court is set to hear Tesco's lawsuit against Broadcom regarding the licensing dispute.

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