Supermarket Giant Tesco Sues V... Note
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Supermarket Giant Tesco Sues VMware, Warns Lack of Support Could Disrupt Food Supply

Tesco is suing Broadcom and reseller Computacenter for at least $134 million over alleged breaches of VMware's perpetual license support agreements. The supermarket giant claims these breaches occurred after Broadcom acquired VMware. Tesco states that in January 2021, it purchased perpetual licenses for VMware products and secured support services until 2026, with an option to extend. Broadcom subsequently ceased selling support for perpetual licenses, instead offering new subscription-based support. Tesco argues that Broadcom's new subscriptions force it to pay inflated prices for software it has already paid for. The retailer also claims it cannot obtain standalone support or essential software upgrades for its existing licenses without purchasing duplicative subscriptions. Tesco contends that its contracts entitled it to these upgrades and that Broadcom's patch publication policy denies access to security updates for non-subscribers. The company highlights that VMware software and its support are critical for Tesco's operations, underpinning approximately 40,000 server workloads. Tesco asserts that this lack of support could impact its ability to supply groceries across the UK and Republic of Ireland. The lawsuit seeks damages from Broadcom, VMware, and Computacenter, with the amount expected to increase as the dispute continues.