Tesco moving 40k server workloads off VMware amid Broadcom's abusive conduct
Points and comments are a snapshot, not live.
Tesco is migrating 40,000 server workloads off VMware, citing Broadcom's 'abusive conduct' and price hikes.
Tesco filed a UK lawsuit alleging Broadcom breached contract after hiking VMware prices by ~175% and refusing to honor perpetual licenses. Broadcom stopped support in January 2026, forcing Tesco to pay for third-party support and begin migrating to an unnamed alternative by end of 2027 at the earliest. Tesco faces migration challenges due to incompatibility with its backup software. The case may go to trial in late 2027 or early 2028.
Broadcom has faced similar disputes with AT&T and Siemens but reported financial success with its VMware strategy.
What commenters are saying
Commenters debated the likely alternative for Tesco, with suggestions including Proxmox, OpenShift Virtualization, Nutanix, and XCP-ng. Several noted Proxmox may not scale to 40k VMs. A Red Hat employee stated migrating 40k servers is a regular occurrence, typically targeting OpenShift Virtualization at 500-1000 guests per day. Others criticized Broadcom's strategy as short-sighted, drawing parallels to Oracle's behavior. Some commenters shared personal experiences with Broadcom's aggressive sales tactics.