Tesco, a major UK supermarket chain, is removing 40,000 servers from its VMware infrastructure, marking the largest...

Tesco, a major UK supermarket chain, is removing 40,000 servers from its VMware infrastructure, marking the largest publicly known migration away from the platform since Broadcom's acquisition, as reported by Tom's Hardware [source 1]. The move follows a £100 million lawsuit filed by Tesco against Broadcom, alleging breach of contract and violation of competition laws after Broadcom discontinued perpetual licensing in favor of aggressive subscription pricing. Tesco claims price hikes of 175% for VMware and 350% for mainframe software. Broadcom has also stopped supporting Tesco's VMware suite, forcing the retailer to seek third-party support. This exodus reflects broader discontent among enterprise customers, with Broadcom's post-acquisition strategy of bundling, per-core doubling, and minimum commitments driving clients away. While a separate press release notes that Broadcom's NICs and HBAs are featured in Toshiba's storage demonstrations at ISC 2026 [source 2], this does not offset the material revenue risk from VMware customer losses. The ongoing litigation and migration signal potential long-term erosion of VMware's market share, negatively impacting AVGO's subscription revenue and reputation.