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

Tesco is moving 40,000 server workloads off VMware amid what it calls Broadcom’s “abusive conduct.” The retailer is also facing migration challenges because its new, unnamed virtualization software is incompatible with the Veeam and Zerto products it uses. Tesco initially requested at least 100 million pounds in damages from Broadcom, VMware, and reseller Computacenter, plus interest.

The company said multiple offers from Broadcom to continue using VMware and mainframe technology were “manifestly unfair and excessive,” and it rejected at least four such proposals. One offer charged $23.5 million (about 17.6 million pounds) for VMware Cloud Foundation 9.0 and mainframe software and support for a year, The Register reported.

Tesco said that amounted to around a 175 percent increase for VMware and a 350 percent hike for the mainframe offerings. Broadcom denied the price hike was unfair in an amended defense and argued it should not pay damages now that Tesco has found replacement products, The Register reported.

United Kingdom

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