Tesco moving 40k server workloads off VMware amid Broadcom's abusive conduct(arstechnica.com)
336 points by Bender 16 hours ago | 200 comments
tl;dr: Tesco is migrating 40,000 server workloads off VMware and suing Broadcom, VMware, and reseller Computacenter for at least £300 million, alleging "manifestly unfair and excessive" price hikes—reportedly 175% above expected pricing for VMware and 350% for mainframe software. Tesco rejected four Broadcom offers and is now contending with compatibility issues, as its new virtualization platform doesn't work with its existing Veeam and Zerto tools. The case is expected to reach UK court between late 2027 and early 2028, joining similar Broadcom disputes with AT&T (settled) and Siemens.
HN Discussion:
  • Broadcom's predatory acquisition and price-gouging business model is well-known and exploitative
  • Other customers share similar negative experiences with Broadcom's pricing and dishonesty
  • Now is a good time to migrate off VMware given established migration paths
  • Questioning technical details like which VMware alternative lacks backup compatibility
  • ~Broadcom is intentionally abandoning legacy customers to pivot to lucrative AI business