Dell wants £10m+ from VMware if Tesco case goes against it
- Reference: 1768458184
- News link: https://www.theregister.co.uk/2026/01/15/dell_vmware_claim_tesco_case/
- Source link:
As The Register [1]reported last year, Tesco sued VMware’s owner Broadcom and reseller Computacenter for not providing software licenses and support services the retail giant believes it is entitled to under a 2021 contract.
That deal saw Tesco acquire perpetual licenses for VMware software, services, plus software upgrade rights and the right to extend its services contract. Under Broadcom’s ownership, VMware only sells subscriptions and won’t sell or extend support contracts for customers who continue to use perpetually licensed software. Tesco acquired its VMware licenses from reseller Computacenter, which the retailer named as a co-defendant for failing to provide software licenses as allegedly contracted.
[2]
Computacenter later [3]filed a claim against Broadcom, and against Dell.
[4]
[5]
When Tesco struck its contract, Dell was a VMware distributor. Computacenter believes its reseller relationship with the hardware giant included an obligation to provide VMware software.
Last week, Dell filed a claim against VMware’s UK and global entities (VMware UK and IL).
[6]
“Dell alleges that VMware UK and (in the alternative) VMware IL are subject to obligations to provide certain goods and services … and have breached their obligations to do so,” a court filing states.
Dell therefore wants “damages, specific performance, interest and/or such further or other relief as the Court considers appropriate from VMware,” and claims it “expects to recover more than £10,000,000.”
Dell will only seek the above from VMware if Computacenter succeeds in its action.
[7]
Dell has also filed its defense against Computacenter’s claims, in which it argues that its contract with the reseller only required it “to communicate any renewal request made by Tesco to VMware.”
Even that obligation, Dell argues, “was conditional on VMware’s continued willingness to supply the products and services in question and/or on Dell being permitted by VMware to continue to act as an authorised distributor.”
Dell [8]terminated its distribution deal with VMware in 2024, so now can’t provide software to Computacenter or Tesco.
Broadcom is unwilling to supply the products Tesco wants or to support them. The chips and code giant says the software Tesco wants is end of life, no longer on sale, and it therefore can’t be compelled to provide or support it.
[9]European cloud trade group says EU should have blocked VMware-Broadcom merger
[10]VMware isn’t budging in its pursuit of Siemens for alleged unpaid licenses
[11]Lenovo has a hunch you’re about to try quitting VMware
[12]AWS adds hybrid cloud storage support for Nutanix’s AHV hypervisor
All of which leaves Tesco, Broadcom, Computacenter, and Dell in a four-way stand-off.
Tesco’s early filings in the case said VMware’s software is “essential for the operations and resilience of Tesco’s business and its ability to supply groceries to consumers across the UK and Republic of Ireland.”
Broadcom says it tried to offer Tesco a new deal, but that the mega-retailer “failed to meaningfully address” its proposals.
Grab some popcorn. If Tesco can still get it onto the shelves. ®
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[1] https://www.theregister.com/2025/09/03/tesco_sues_vmware_broadcom_computacenter/?_gl=1*ilmkvq*_ga*MTI0MjE1MDMxNS4xNzE5OTg5NTg5*_ga_JXW44Y23NM*czE3Njg0NDYyOTYkbzE3NjkkZzEkdDE3Njg0NDYzMDIkajU0JGwwJGgw
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2aWlxmyxKUgfwiUgmI0ySvQAAAkY&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://www.theregister.com/2025/10/28/tesco_vs_broadcom_vmware_update/?_gl=1*14w2kbe*_ga*MTI0MjE1MDMxNS4xNzE5OTg5NTg5*_ga_JXW44Y23NM*czE3Njg0NDYyOTYkbzE3NjkkZzEkdDE3Njg0NDY3NDgkajM3JGwwJGgw
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aWlxmyxKUgfwiUgmI0ySvQAAAkY&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aWlxmyxKUgfwiUgmI0ySvQAAAkY&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aWlxmyxKUgfwiUgmI0ySvQAAAkY&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aWlxmyxKUgfwiUgmI0ySvQAAAkY&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[8] https://www.theregister.com/2024/01/30/dell_terminates_vmware_distribution_agreement/
[9] https://www.theregister.com/2025/12/11/european_cloud_trade_group_vmware_broadcom/
[10] https://www.theregister.com/2025/11/28/vmware_vs_siemens_fresh_filings/
[11] https://www.theregister.com/2026/01/13/lenovo_fx_multi_hypervisor_hci/
[12] https://www.theregister.com/2025/12/24/aws_storage_gateway_nutanix_ahv/
[13] https://whitepapers.theregister.com/
Re: Ah, the beauty of "perpetual licenses"
But...but...it was an "assets only" acquisition!
...a practice that should be banned, unless there comes a an equitable method for obligees to submit claims at the front end of the acquisition, similar to debtees when a party goes into recievorship
Tesco Argument - You told us you will keep selling us Fiestas
Broadcom - But we don't make the Fiesta anymore, here buy a Explorer instead for 10x the price. It can do everything a Fiesta can and a whole lot more that you don't need. And BTW you can't buy it anymore, only lease it. And we can't service your Fiesta anymore either so when it breaks we won't fix it.
Tesco - But we need Fiestas to keep driving around and keep our business running.
Broadcom - Well pony up then.
Tesco - No thanks, we are moving over to the Kia Proxmox
It's very satisfying, the business I work with underwent an escape from Oracle a few years back. We purged all Oracle from the business due to their extortionate licensing practice.
Now the same business has started its escape from VMWare project for the same reason. I really hope this is reflected everywhere in every business.
I foresee an escape from
A lot of orgs (including several Russell Group UK universities) went into agreements (eg: "Free" email services) with absolutely no forward planning as to how to switch away when (not if) things went sour and laid off the staff who could have provided that expertise because "too costly", resulting in them now being handcuffed
In several cases the software they're handcuffed to is substantially worse than the software they were previously using - resulting in cost blowouts, which in turn has caused them to lay off more tech staff to save money
We have a Sentinel alert running that instantly triggers an alert if any filename or process name contains the word "Oracle".
As soon as it triggers, I'm instantly on the phone "You're installing Oracle shit aren't you?".
Don’t forget to scan for synonyms like Orca, Ogre…
Good job you're not a uni. You'd never be off the phone to the Classics department.
Bad analogy
It's like buying something with a lifetime warranty then suddenly it isn't.
Re: Bad analogy
Always check the smallprint for definition of 'lifetime'. I will bet a pound to a penny that it isn't your lifetime but the lifetime of the product. At which point the warranty could read "We will warrant that the product will work. Until it stops working, at which point it is end of life and out of warranty"
Re: Bad analogy
But always check what a court has said about the legality of that smallprint definition and, if a court hasn't pronounced on something you're prepared to accept as similar circumstances, check what a court will say. That's why things are as TFA describes them.
Well Ford won't make the Focus any longer because people want SUVs so they can feel to have something bigger...
No it's because SUVs and crossovers are priced higher and vastly more profitable....
And Fords board is under the delusion that they can shift from being a high volume low margin manufacturer to a boutique low volume high margin manufacturer and people will happily fork over high end Audi money for a low end ford.....cue ford sales figures tanking, vehicles sitting unwanted on forecourts, dealers screaming blue murder at ford
Hence the sudden scramble to build a "crossover successor to the Fiesta" which will still be over twice the price of a fiesta and still won't sell...
"Broadcom says it tried to renege on it's contract and offer Tesco a new worse deal, but that the mega-retailer “failed to meaningfully address” its proposals."
FTFY
Chain of obligation.
Isn't the issue with who has a contract with whom?
Tesco have a contract with Computacenter. Does Computercenter have a contract with Dell/VMware/Broadcom that obliges them to provide services that Computacenter have contracted to provide?
If Tesco bought vans from a Ford dealer with a 10-year service plan, and Ford stop making the parts, the Ford dealer can only sue Ford if they have a contract that obliges them to supply.If not, the Ford dealer is S O L and goes bust.
I suspect that Computacenter will cease to exist as Tesco can oblige them to purchase enough VMWare subscriptions to be able to provide Tesco with the services they have a contract for.
XCP-ng
If they win, should throw it to them!
But being the arseyole's they are.... will prob get something cheap and nasty and spend it on themselves
Re: XCP-ng
I think they’d be better off paying VMware….
Broadcom says it tried to offer Tesco a new deal,
One, I suppose, that they couldn't refuse.
There is a name for organisations who act like that.
Government?
Oracle?
Ah, the beauty of "perpetual licenses"
Versus the tendancy of company mergers to completely disregard any previous obligations in order to dicate the "new future" defined by the Board doing the acquisition, which is also actively defining how many "acquired" personnel it can get rid of under the excuse of "redundancy".
I've always found interesting that the acquiring company has never found any of its Board members to be "redundant" . . .