Retail giant's disty, reseller, and vendor all say they can't and won't sell
EXCLUSIVE Dell has filed a claim against VMware in the software licensing dispute brought by supermarket giant Tesco and wants the virtualization giant to fork over at least £10 million under certain circumstances.
As The Register 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.
Computacenter later filed a claim against Broadcom, and against Dell.
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).
“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.
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 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.
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. ®