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Hacker News·Jun 17·5 min read
Tesco moving 40k server workloads off VMware amid Broadcom's abusive conduct
TL;DR
Tesco faced a significant price increase of 175% from Broadcom for VMware software, which they deemed excessive. In response, Tesco is migrating 40,000 server workloads away from VMware's products.
✦ Why It Matters
Understanding vendor behavior can help engineers negotiate better contracts and avoid similar pitfalls.
Key Takeaways
- Review software licensing agreements regularly.
- Negotiate clear terms with vendors.
- Monitor vendor acquisitions for potential risks.
- Consider alternative solutions to avoid vendor lock-in.
Full Summary
Tesco, a major UK retail company, has initiated a migration of 40,000 server workloads from VMware due to Broadcom's alleged abusive pricing practices. After acquiring VMware in November 2023, Broadcom reportedly refused to honor Tesco's existing perpetual licenses for VMware's vSphere Foundation and Cloud Foundation, as well as support services.
Instead, Broadcom demanded inflated prices and required Tesco to purchase additional subscription-based licenses for software they had already paid for. Tesco's lawsuit claims this conduct constitutes a breach of contract.
As a result of these disputes, Tesco is actively transitioning away from VMware's virtualization products. This situation highlights the risks associated with vendor acquisitions and the importance of clear contractual agreements in software licensing.