The impact of Tesco versus Broadcom lawsuit on software procurement | Computer Weekly
Summary
Tesco has sued Broadcom, VMware and reseller Computacenter over changes to VMware and mainframe licensing and support after Broadcom’s acquisitions, alleging abusive bundled terms and excessive price increases. The procurement chain — Tesco bought licenses via Computacenter and distributor Dell — complicates who holds renewal and support obligations, and Dell and Computacenter have filed linked claims. Tesco says it cannot quickly migrate off Broadcom’s products and is also alleging anti-competitive behaviour; Broadcom argues it can retire products and that renewals require written acceptance. The High Court will decide contractual breaches and potential competition law issues, highlighting the risks organisations face when a major software supplier changes licensing models.