"If you're a tech company marketing manager writing white papers, you'll love a juicy pull quote. That's where a client says something so lovely about you, you can pull it out of the main text and reprint it in a big font in the middle of the page. "VMware is essential for the operations of Tesco's business and its ability to supply groceries" is a great candidate from 2019. Or it would be, if it wasn't followed by accusations of massive contractual misbehavior threatening the client,"
"Tesco is the UK's biggest supermarket chain by revenue, with around 40,000 server workloads keeping the ship afloat. Before Broadcom swallowed VMware, Tesco bought perpetual licenses and support that could run to 2030. Broadcom, Tesco claims, is refusing to honor the support contracts until Tesco switches to new licenses. This, it is further claimed, puts the retail giant at risk of being unable to operate."
"Assuming Tesco's claims are true, this is extortion. Running an enterprise on unsupported software, while not exactly unknown, is corporate malpractice. Running unsupported software on which your entire business depends is nigh on suicidal. But who's holding the gun here? Pulling patches, support, and upgrades that you are contractually obliged to provide, while demanding more money for a worse deal, doesn't look like being a good partner. It looks like running a protection racket. It looks like extortion."
Tesco relies on around 40,000 VMware-backed server workloads for core operations and purchased perpetual licenses with support potentially running to 2030. After Broadcom acquired VMware, Tesco alleges Broadcom is refusing to honor existing support contracts unless Tesco migrates to new licenses. Tesco says the refusal endangers its ability to operate and seeks over £100 million in damages from Broadcom, VMware, and reseller Computacenter. The claims portray withheld patches and support combined with demands for more money as effectively extortionate conduct; the legal dispute remains unresolved pending the court case.
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