Tesco, a UK retail giant, is moving 40,000 server workloads off of VMware due to alleged “abusive conduct” from Broadcom. The company claims that when Broadcom took over VMware in November 2023, it failed to honor an existing deal and demanded excessive fees for already paid-for software.

In its lawsuit against Broadcom, Tesco detailed how the tech giant stopped supporting its VMware products and refused to provide updates without subscriptions, forcing Tesco to pay for third-party support. The retailer is now migrating away from VMware's software and mainframe products with significant operational risks.

If all goes well, Tesco aims to be completely off VMware by 2027 but warns that the migration will cause material disruption to its business operations. The legal battle highlights the growing tensions between big tech companies and their clients over pricing and service terms.

Tesco’s journey towards software independence serves as a cautionary tale for other businesses wary of long-term contracts with powerful tech firms.