"In 2021, Tesco purchased perpetual licenses for VMware vSphere Foundation and Cloud Foundation, supplemented with Tanzu subscriptions and multi-year support and upgrade contracts that would run until 2026. An option to extend the support by four years was also agreed upon. However, since Broadcom's acquisition of VMware in 2023, the policy has changed: support for perpetual licenses has been discontinued and customers are being forced to switch to new, more expensive subscription models."
"According to Tesco, this amounts to paying twice for software for which the company already holds licenses. In addition, according to the complaint, Broadcom refuses to make upgrades, such as to Cloud Foundation 9, available under the existing contracts. The distribution of security patches and bug fixes is also limited to subscription customers, which the supermarket chain considers a breach of contract."
"Tesco claims that its entire digital operation depends on VMware technology. This involves around 40,000 virtual workloads that support cash register systems and logistics processes, among other things. Without timely updates and support, stores and distribution centers could be immediately affected. The retailer is therefore demanding at least £100 million in damages, which will increase as the situation continues. Rijkswaterstaat had the same problem This conflict is not an isolated case."
Tesco purchased perpetual licenses in 2021 for VMware vSphere Foundation and Cloud Foundation with Tanzu subscriptions and multi-year support and upgrade contracts through 2026, plus an option to extend support by four years. After Broadcom acquired VMware in 2023, support for perpetual licenses was discontinued and customers have been required to move to new subscription models. Broadcom has refused to provide upgrades such as Cloud Foundation 9 under existing contracts and restricts security patches and bug fixes to subscription customers. Tesco says around 40,000 virtual workloads could be affected and seeks at least £100 million in damages. Similar disputes have been litigated, including a Dutch court order to continue support for Rijkswaterstaat until migration.
Read at Techzine Global
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