Core Viewpoint - Tesco has filed a lawsuit against Broadcom, claiming breach of VMware software licensing agreement, seeking £100 million in damages, and warning of potential disruptions to food supply chains in the UK if the issue remains unresolved [1][5]. Group 1: Background of the Dispute - In January 2021, Tesco signed a long-term contract with VMware, which is critical for its IT systems, relying on VMware's virtualization platform for nearly 40,000 servers that support core business operations [2]. - Following Broadcom's acquisition of VMware in November 2023, the company shifted from a perpetual licensing model to a subscription-based model, requiring customers to pay for ongoing support and upgrades [2][6]. Group 2: Tesco's Allegations - Tesco's lawsuit highlights three main allegations: 1. Claims of double payment for software, as Tesco believes it has already paid for perpetual licenses but is now being asked to pay again for subscriptions at inflated prices [3]. 2. Denial of upgrade rights, as Broadcom has refused to allow Tesco to upgrade its existing software to the latest version [3]. 3. Imposition of security risks, as Tesco argues that without a subscription, it cannot access critical security updates, jeopardizing its operational safety [3]. Group 3: Broader Implications - Tesco's lawsuit is not an isolated incident; other major clients like AT&T and Siemens have also raised similar concerns against Broadcom regarding support for perpetual licenses, indicating a widespread backlash against the forced subscription model [5][6]. - The ongoing disputes have created opportunities for VMware's competitors, such as Nutanix, which reported gaining 2,700 new customers in the past year, many of whom migrated from VMware [6].