Tesco Takes Broadcom to Court Over VMware Licensing, Seeks £100 Million

UK supermarket giant Tesco is suing Broadcom, the parent company of VMware, and IT services firm Computacenter over an alleged breach of contract related to VMware software licenses, with a High Court hearing set for no sooner than November 2027. The retailer is seeking approximately £100 million in damages, according to Hacker News, and is simultaneously replacing VMware with an alternative product.

The dispute stems from a January 2021 contract in which Tesco acquired perpetual licenses for VMware's vSphere Foundation and Cloud Foundation products, plus subscriptions to Tanzu products, as The Register reported. Tesco claims that Broadcom and Computacenter have failed to honor contractual obligations, and the supermarket has warned that the dispute could impact its ability to stock shelves if critical IT systems are disrupted, according to Hacker News.

"The supermarket warns that the dispute could impact its ability to stock shelves if critical IT systems are disrupted."

This stark warning underscores how deeply enterprise software disputes can threaten core retail operations, especially for a company as large as Tesco. The retailer has turned to third-party support as it navigates the migration away from VMware amid the ongoing legal battle, The Register reported.

The case highlights the growing friction between large customers and Broadcom since its acquisition of VMware, with Tesco's legal action representing one of the most high-profile challenges yet. With a court date set for late 2027, the retailer is clearly preparing for a long fight while it works to replace the software at the center of the dispute.