technologyThursday, June 18, 2026 at 12:50 AM
Tesco Initiates Migration of 40,000 VMware Workloads After Rejecting Broadcom Offers at 175 Percent Premium
Tesco's documented rejection of Broadcom renewal quotes at 175-350 percent premiums triggered a 40,000-workload exit. Parallel disputes with AT&T and Siemens confirm a pattern of post-acquisition licensing enforcement. Migration volume and rival capture rates will determine whether Broadcom's enterprise revenue model sustains through 2028.
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Broadcom continues its large-account focus with no announced policy reversal. Additional UK and EU filings are expected as contract renewal cycles complete through 2027.
⚡ Prediction
Broadcom: EMEA VMware subscription ARR will fall 6 percent year-over-year in fiscal Q4 2027 as cumulative migrations exceed 150,000 workloads.
Sources (3)
- [1]The Register Tesco Court Filings(https://www.theregister.com/2026/06/tesco-broadcom-license-dispute/)
- [2]Ars Technica VMware Migration Coverage(https://arstechnica.com/information-technology/2026/06/tesco-moving-40000-server-workloads-off-vmware-amid-broadcoms-abusive-conduct/)
- [3]Broadcom FY2026 10-K Filing(https://www.sec.gov/Archives/edgar/data/0000354950/000035495026000042/broadcom-2026-10k.htm)