Tech
The impact of Tesco versus Broadcom lawsuit on software procurement | Computer Weekly
The latest filings in Tesco’s £100m lawsuit against Broadcom and VMware over an alleged breach in software licensing terms demonstrates the complexity in dealing with resellers and distributors of VMware software.
It also highlights the risk in having one company provide not one, but two business-critical products, a situation Tesco found itself in as a result of Broadcom’s acquisition of both CA Technologies in 2018 and VMware in 2023.
Tesco’s complaint, filed on 15 July 2025, states that it is a long-standing customer of VMware International and CA Europe through the purchase of VMware licences for server virtualisation software and CA Technologies’ mainframe software, along with support services. Tesco stated in the complaint that Broadcom is now seeking to supply its virtualisation and mainframe software and services to the retailer on an abusive, “take it or leave it”, long-term and bundled basis.
The VMware licences and support were not purchased directly from VMware. Instead, Tesco procured the products and support services via a reseller, Computacenter, which had an agreement with software distributor Dell.
In 2023, following its acquisition of VMware, Broadcom announced radical changes to licences, resulting in a simpler range of VMware product bundles, and a focus on moving its customers off VMware’s perpetually licensed virtualisation platform and onto VMware Cloud Foundation subscription-based licensing.
Many existing customers have found that the new products increased their VMware costs dramatically, forcing some either to pay for the product bundles, which included products they did not use, or migrate to alternative virtualisation platforms.
Tesco claims that Broadcom has threatened to increase prices excessively for the VMware and mainframe software support it used. It said it was unable to migrate easily to another virtualisation or mainframe supplier in the short term, and that it would take at least three years to move off Broadcom’s VMware and CA Technology products.
Tesco maintains that Computacenter was well aware that it could not operate its retail business without the VMware software and support services or the mainframe software and support services. It stated that the majority of its stores operate using these software products and support services to administer business-critical functions such as logistics, stock management and replenishment, and payments.
The legal filings show that on 29 January 2021, Tesco originally purchased the VMware software licences from Computacenter, which along with VMware and Broadcom is a defendant in the legal dispute. The products covered include VMware vSphere Foundation and VMware Cloud Foundation licensed perpetually and VMware Tanzu Basic and Tanzu Mission Control, which were licensed under an initial contract term up to 28 January 2026.
The agreement covered a five-year payment schedule, but Broadcom has denied there was an agreement between VMware International and Tesco in relation to the five-year payment schedule.
Now Dell has been drawn into the dispute. Prior to 2024, Dell was a distributor of VMware and, according to Broadcom’s legal filings, Dell had a channel partner agreement with Computacenter dating back to 2013. However, on 8 January 2026, Computacenter filed a claim against Dell relating to its inability to provide the VMware software it was contractually obliged to deliver to fulfil the contract with Tesco.
Broadcom claims that VMware and its subsidiaries had no obligation to Dell or its subsidiaries regarding the provision to renew VMware product offerings. It stated that as per the 2023 distributor agreement with Dell, any renewal was subject to the written acceptance by VMware.
Dell has now said it will sue VMware International for £10m, if it is found to have broken its contractual obligation to Computacenter.
Contract Ts&Cs. Who is liable?
In a LinkedIn post, Barry Pilling, principal consultant at BeDigital, noted that the case is about Broadcom not honouring a contractual obligation claimed by Tesco to provide the retailer with four years of additional support at the expiry of its enterprise licence agreement (ELA).
Broadcom argues that Tesco would not have the option to renew support services and Computacenter would not be obliged to procure a renewal of the Tanzu Licence if the relevant software or services are no longer available, or the products have reached end of life.
Commenting on Pilling’s LinkedIn post, Scott Bickley, a consultant at Info-Tech Research Group, said: “Having read most of the legal complaints and having reviewed hundreds of VMware contracts, it would appear few of these legal claims have legs. VMware was quite crafty inserting language that allowed them to go EOL (end of life) with active products at their discretion, effectively relieving themselves of future obligations around support.”
But there is more to the dispute, as Pilling explained in a conversation with Computer Weekly. He said Tesco is also claiming Broadcom has acted in an anti-competitive manner. “Tesco is saying Broadcom has been abusing its dominant market position,” said Pilling. “60% of the world’s virtualisation runs on its platform, and it has ramped up pricing without giving them any justification.”
Pilling noted that if the High Court rules that Broadcom has breached competition law, the UK’s competition regulator, the Competition and Markets Authority (CMA), will need to investigate. As Pilling pointed out, the CMA had already approved Broadcom’s acquisition of VMware.
However, he believes that decision did not take into account VMware’s dominant position in the marketplace. At the time of the CMA’s investigation: “There was a lot of concern in the industry around whether Broadcom, one of the world’s biggest hardware providers, would lock customers into its hardware when it sold them VMware software, which is what the CMA investigated. But nobody looked at the fact that VMware is the world’s biggest virtualisation software provider.”
The nuanced arguments presented in the court documents from the different parties represent a snapshot of the complexity of this case. Broadcom has stated that it has the right to stop selling products and providing support in a way that supersedes existing licence contracts. And while there appears to be email correspondence between Tesco and VMware relating to software contract negotiation, Broadcom is arguing that its direct relationship was with Dell, not Tesco.
The High Court will ultimately decide if Broadcom has broken its contractual obligation to provide VMware software and support services, and if it is acting in an anti-competitive manner. But as the case moves forward, the Tesco versus Broadcom, VMware and Computacenter lawsuit demonstrates the precarious position IT leaders and the organisations they work for can face when a key software provider changes its business model.
Tech
Artemis II Mission Launches Successfully
At 6:36 pm Cape Canaveral time, NASA’s SLS rocket lifted off without incident with the four members of the Artemis II spacecraft aboard. During the first few hours, Orion will complete its journey into Earth orbit and, throughout the first day, will conduct critical navigation and systems tests. Around the third or fourth day, the spacecraft will begin its trajectory toward the moon and cross its gravitational sphere of influence. In total, the mission will last approximately 10 days.
The mission includes the first woman and the first Black person on a crewed mission to lunar orbit. The launch comes 53 years after Apollo 17, the last crewed mission to the Moon.
The Artemis II crew will not land on the moon (that will happen on Artemis IV ). Instead, their capsule will fly at altitudes between 6,000 and 9,000 kilometers above the surface of the far side of the moon, circle it, and begin the return journey to Earth. The mission’s main objective is to demonstrate that the space agency has the technological capability to send people to the Moon safely and without incident.
Once they achieve this, NASA will begin preparations for new moon landings in the following years, which will aim to establish the first lunar bases in history and, with them, the sustained and sustainable presence of humans on the satellite.
The launch was successful and occurred on schedule. The launch window opened on Wednesday, April 1, at 6:24 pm Eastern Time (EDT) and could have been extended for two hours, if necessary. NASA would have had five more days to attempt another launch.
Mission Details
The astronauts took off on a NASA SLS rocket and are traveling inside the Orion capsule, described as a spacecraft about the size of a large van. They will orbit Earth for at least two days to test the onboard instruments. Then they will align the spacecraft to begin its journey to the moon. By the fifth or sixth day of flight, the capsule is expected to enter the moon’s sphere of influence, where the satellite’s gravity is stronger than Earth’s, and dock with its orbit.
When the spacecraft passes “behind” the moon, the most dangerous phase will begin. The crew will be out of contact with Earth for about 50 minutes due to interference from the moon itself. During this crucial moment, the crew must capture images and data from the moon, taking advantage of the far-more-advanced technology they carry than was available during the Apollo era.
After completing the return, the capsule will head home, taking advantage of the Earth-moon gravity field to save fuel. According to NASA estimates, by the 10th day of flight the crew will be close to reaching the planet.
Tech
Arm works with IBM to deliver flexibility on mainframe | Computer Weekly
IBM has begun working with chipmaker Arm to develop what it calls dual-architecture hardware to provide flexibility when running enterprise artificial intelligence (AI) and data-intensive workloads.
Their overall goal is to combine IBM’s experience in systems reliability, security and scalability that it offers on Z-series mainframe systems with Arm’s expertise in power-efficient architectures and supporting a broad software ecosystem to build flexible and scalable computing platforms for the future.
Arm has been on a path to deliver an alternative to x86-powered servers in the datacentre. The company has introduced the Arm Agentic AI (artificial intelligence) central processor unit (CPU) which it positions as a processor that is tasked with keeping distributed AI systems operating efficiently at scale. This includes orchestrating AI accelerators, managing memory and storage, scheduling workloads and moving data across systems.
This latest collaboration appears to be focused on deliver enterprise reliability to the Arm platform. It builds on IBM’s heritage of offering coprocessors for the Z-series hardware such as the Integrated Facility for Linux, which was introduced in 2000. The mainframe manufacturer later introduced a Linux system based on the Z-series architecture, called LinuxOne, designed to let enterprise customers run Linux workloads in situ with data that resides on the mainframe system.
Christian Jacobi, chief technology officer and IBM fellow of IBM systems development, said: “This moment marks the latest step in our innovation journey for future generations of our IBM Z and LinuxOne systems, reinforcing our end-to-end system design as a powerful advantage.”
Mohamed Awad, executive vice-president of the cloud AI business unit at Arm, said: “Our collaboration with IBM builds on this progress, extending the Arm ecosystem into mission-critical enterprise environments and giving organisations greater flexibility in how they deploy and scale these workloads.”
The two companies said they are exploring how to expand virtualisation technologies that allow Arm-based software environments to operate within IBM’s enterprise computing platforms. According to IBM and Arm, this work is designed to expand software compatibility and streamline how developers and enterprises bring Arm applications into mission-critical environments.
In the security and reliability front, the pair plan to investigate new ways to support the performance and efficiency demands of modern workloads, including AI and data-intensive applications. IBM and Arm said they will be looking at how to enable enterprise systems to recognise and execute Arm applications.
The two companies also hope to provide a broader software ecosystems and greater flexibility in how applications are deployed and managed. IBM plans to offer new systems for its customers that incorporate Arm’s technology.
Tina Tarquinio, chief product officer of IBM Z and LinuxONE, said: “Our aim is to expand software choice and improve system performance while maintaining the reliability and security our clients expect.”
The collaboration is seen as a signal of how enterprises may eventually deploy scalable, flexible IT infrastructure to support different types of application workload.
Patrick Moorhead, founder, CEO and chief analyst at Moor Insights & Strategy, added: “What IBM and Arm are signaling here is a meaningful step toward that future that could broaden how enterprises think about deploying and scaling modern workloads. While the full implications will take time to unfold, it’s clear this reflects a deeper level of investment in long-term platform innovation and ecosystem expansion than we typically see at this stage.”
Tech
California Suspends Enforcement of Law Requiring VCs to Report Diversity Data
Under a new state regulation, venture capital firms operating in California were supposed to submit demographic data about their portfolio companies, including the gender and race of startup founders they backed. But amid public criticism from some tech leaders, the California agency administering the new requirement suspended it just before the Wednesday deadline for firms to make their first disclosures.
“The California Department of Financial Protection and Innovation (DFPI) has announced that it plans to initiate rulemaking in response to comments by various stakeholders relating to the Fair Investment Practices by Venture Capital Companies Law,” the state agency posted on its website in mid-March. “Implementation and enforcement of the [law] will be suspended pending completion of the rulemaking and until final regulations are in place.”
California lawmakers first passed the measure in 2023, and it was signed into law shortly thereafter by Governor Gavin Newsom. For decades, women and people of color have received only a small share of overall startup funding relative to their representation in the US population. Lawmakers hoped putting more public scrutiny on investment decisions would help foster greater equity in the market, including for people who are disabled, retired military, or LGBTQ+.
The law called for venture capital and some other investment firms to file annual reports starting March 1 of last year about the overall makeup of the founding teams they had invested in and the amount of money they provided to diverse founders. Firms were meant to collect the demographic data through a voluntary survey that was then anonymized. California authorities planned to publish the filings online. Lawmakers amended the law in 2024 to delay reporting until April 1, 2026, and enable the state to levy daily fines for noncompliance.
The California Department of Financial Protection and Innovation did not immediately respond to a request for comment on the authority it used to sidestep the deadline set by lawmakers. Newsom’s office also didn’t immediately respond to a request for comment.
Financiers focused on funding entrepreneurs from underrepresented backgrounds had supported the law. But the National Venture Capital Association, the tech investment industry’s leading trade group, opposed it. The group argued that voluntary data collection would inflate diversity statistics and that publishing inaccurate data could lead to unfair attacks on investors genuinely trying to tackle diversity issues. Over the past year, the Trump administration has defunded and attacked diversity, equity, and inclusion, or DEI, initiatives in both the public and private sectors, leading many businesses and organizations to pull back from them.
In February, the venture capital association wrote to Newsom asking for the reporting deadline to be pushed back again because, in its view, the state had bungled the process. California authorities didn’t publish the standardized survey that founders were supposed to fill out until early this year, and at the time they still hadn’t introduced a way for firms to register with regulators as required by the law, according to the association. “This administrative timeline creates an environment ripe for error and threatens to produce the misleading and counterproductive data we previously warned against,” association president and CEO Bobby Franklin wrote.
Last month, as the deadline for the first reports loomed, some entrepreneurs and investors began complaining on social media about the survey effort. “The latest California malarky is a requirement for venture investors to collect/report racial and gender statistics,” wrote Blake Scholl, the founder and CEO of venture-backed aviation startup Boom Supersonic. “I want to live in a world where merit matters—not skin color or what you have between your legs.”
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