"The latest filings in Tesco's £100m lawsuit against Broadcom and VMware over an alleged breach in software licensing terms demonstrates the complexity in dealing with resellers and distributors of VMware software. It also highlights the risk in having one company provide not one, but two business-critical products, a situation Tesco found itself in as a result of Broadcom's acquisition of both CA Technologies in 2018 and VMware in 2023."
"In 2023, following its acquisition of VMware, Broadcom announced radical changes to licences, resulting in a simpler range of VMware product bundles, and a focus on moving its customers off VMware's perpetually licensed virtualisation platform and onto VMware Cloud Foundation subscription-based licensing. Many existing customers have found that the new products increased their VMware costs dramatically, forcing some either to pay for the product bundles, which included products they did not use,"
Tesco is pursuing a £100m lawsuit against Broadcom and VMware alleging breach of software licensing terms and abusive bundled pricing. Tesco bought VMware licences and CA mainframe software through reseller Computacenter, which had an agreement with distributor Dell, rather than directly from VMware. Broadcom's acquisitions of CA Technologies in 2018 and VMware in 2023 left Broadcom supplying both virtualisation and mainframe products. Broadcom's 2023 licence changes simplified product bundles and pushed customers from perpetual licences to VMware Cloud Foundation subscriptions, substantially increasing costs for many customers. Tesco alleges excessive price increases and says migration will take at least three years.
Read at ComputerWeekly.com
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