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

Tesco is also dealing with migration challenges related to data security because its new, unnamed virtualization software is incompatible with the Veeam and Zerto products it uses. “Manifestly unfair and excessive” price hike Tesco initially requested at least 100 million pounds (about $133.6 million) in damages each from Broadcom, VMware, and reseller Computacenter, plus interest. In its recent filings, Tesco said it turned down at least four offers from Broadcom to continue using VMware and Broadcom’s mainframe tech. One offer charged $23.5 million (about 17.6 million pounds) for VMware Cloud Foundation 9.0 and mainframe software and support services for a year, The Register reported. Tesco said that was “around 175 percent” more expensive than what it believes it should have had to pay for VMware and a 350 percent price hike for the mainframe offerings. The prices were “manifestly unfair and excessive,” one of Tesco’s filings said, according to The Register. In an amended defense, Broadcom denied that the price hike was unfair, The Register reported. Additionally, Broadcom argued that it shouldn’t have to pay damages in relation to Tesco struggling to find VMware and Broadcom alternatives before Tesco’s support expired, as the retail firm has since found replacement products. The case is expected to go to court between November 1, 2027, and February 25, 2028, The Register reported. Afterward, it could go to trial. …