Tesco moving 40k server workloads off VMware amid Broadcom's abusive conduct

Tesco says Broadcom’s price shock turned a software deal into a full-blown escape plan

TLDR: Tesco says Broadcom turned a software contract into a pricing nightmare, so it’s now racing to move 40,000 workloads off the system despite major risks and cost. Commenters are roasting Broadcom, mocking the apparent self-sabotage, and marveling at how brutal this giant tech escape will be.

Tesco’s giant software breakup is turning into a full-on corporate soap opera. The supermarket says it’s trying to move 40,000 server workloads away from VMware after Broadcom allegedly jacked up prices by about 175 percent and cut off support, forcing Tesco into a rushed, expensive exit. In plain English: Tesco says it already paid for this stuff, Broadcom wanted a lot more money anyway, and now one of Britain’s biggest retailers is scrambling to rebuild a huge chunk of its digital back room before something breaks.

But the real fireworks are in the community reaction, where commenters are swinging between outrage, gallows humor, and pure disbelief. One big mood: “How do you fumble a customer this huge?” Another: Broadcom may have accidentally become the world’s best ad campaign for rivals, with one commenter joking that “Broadcom’s marketing for Proxmox is extremely effective.” Ouch. Others zoomed in on the panic-inducing detail that Tesco’s replacement setup doesn’t play nicely with some of its backup tools, prompting the kind of horrified nerd reaction that translates roughly to: wait, what do you mean the safety net doesn’t fit?

Then came the broader hot takes. Some saw Tesco’s mess as proof that companies get trapped when they depend too heavily on giant vendors. One commenter even swerved into an economy-wide rant, arguing that after cloud and artificial intelligence hype, spiraling costs may push businesses back toward simpler, more human-centered choices. The only thing everyone seems to agree on? Moving 40,000 workloads is a monster job, and this drama is nowhere near over.

Key Points

  • Tesco says it is moving 40,000 server workloads off VMware amid a legal dispute with Broadcom over licensing and support.
  • Tesco alleges Broadcom would not honor a 2021 VMware deal that included perpetual licenses, a Tanzu subscription, and support through 2026 with an extension option.
  • According to Tesco, Broadcom stopped supporting its VMware products in January, forcing Tesco to use third-party support.
  • Tesco says the migration away from VMware and Broadcom mainframe products will not be completed before the end of 2027 at the earliest and carries operational and commercial risk.
  • The article reports Tesco claimed Broadcom increased VMware prices by about 175 percent and that Tesco initially sought at least £100 million in damages from Broadcom, VMware, and Computacenter.

Hottest takes

“Broadcom’s marketing for Proxmox is extremely effective” — sokoloff
“Are Broadcom stupid?” — GlacierFox
“goddamn 40k vm’s. A lot of work ahead” — proxysna
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