TL;DR
Dell has filed a claim against VMware in connection with a licensing dispute involving Tesco, saying it could recover more than £10m if a related reseller suit succeeds. The filing frames Dell’s claim as conditional on Computacenter’s action and points to alleged breaches by VMware UK and VMware IL.
What happened
A legal dispute over VMware software licences has widened. Tesco sued Broadcom (VMware’s owner) and reseller Computacenter, saying it is owed perpetual VMware licences and support under a 2021 contract. Computacenter in turn brought claims against Broadcom and Dell. This week Dell filed a claim against VMware’s UK and global entities, alleging they had obligations to supply certain goods and services and breached those obligations. Dell told the court it expects to recover in excess of £10,000,000, but says it will pursue that relief — damages, specific performance and interest — only if Computacenter succeeds in its action. In its defense to Computacenter, Dell says its contractual duty was limited to passing on renewal requests to VMware and depended on VMware’s willingness to supply and Dell remaining an authorised distributor; Dell ended its distribution relationship with VMware in 2024 and says it can no longer supply the software.
Why it matters
- The dispute highlights tensions that can arise when software vendors shift from perpetual licences to subscription-only models.
- Large enterprise customers that bought perpetual licences may face operational and resilience risks if vendors refuse to supply or support legacy software.
- Distributor and reseller relationships can leave multiple parties exposed to litigation when product availability changes under new ownership.
- Potential damages claims into the tens of millions could set precedents for how downstream parties allocate liability in licensing transitions.
Key facts
- Tesco says it acquired perpetual VMware licences, upgrade rights and the right to extend support under a 2021 contract.
- Tesco sued Broadcom (VMware’s owner) and reseller Computacenter for not providing licences and support it believes it is owed.
- Computacenter filed claims against Broadcom and Dell after the Tesco suit.
- Dell has filed a claim against VMware UK and VMware IL alleging breaches of obligations to supply goods and services.
- Dell told the court it expects to recover more than £10,000,000 but will seek relief from VMware only if Computacenter’s action succeeds.
- In defending itself against Computacenter, Dell says its contract only required it to communicate renewal requests to VMware and was conditional on VMware’s willingness to supply and Dell retaining distributor status.
- Dell terminated its VMware distribution agreement in 2024 and says it can no longer provide the software to Computacenter or Tesco.
- Broadcom says the software Tesco wants is end of life and that it has offered Tesco a new deal, which Broadcom says Tesco did not meaningfully address.
What to watch next
- Whether Computacenter succeeds in its claim against Broadcom and Dell — not confirmed in the source.
- If the court finds VMware (or Broadcom) obliged to supply or extend support for the perpetual licences — not confirmed in the source.
- Any settlement talks between Tesco, Broadcom, Computacenter and Dell or court timetables for hearings and rulings — not confirmed in the source.
Quick glossary
- Perpetual licence: A software licence that allows the purchaser to use a specific version of the software indefinitely, without recurring subscription fees for the base licence.
- Subscription licence: A licensing model where access to software is provided for a fixed period and requires ongoing payments to remain licensed and supported.
- Distributor: A company that purchases products from a vendor and resells them to resellers or end customers, often under specific contractual permissions.
- Specific performance: A legal remedy in which a court orders a party to perform a contractual obligation rather than paying damages.
Reader FAQ
What has Dell asked for in its filing?
Dell has filed a claim against VMware UK and VMware IL seeking damages, specific performance, interest and other relief, and says it expects to recover more than £10,000,000; it will only press those claims if Computacenter succeeds in its action.
Why did Tesco sue Broadcom and Computacenter?
Tesco says it is owed perpetual VMware licences, upgrade rights and support under a 2021 contract and that those were not provided as contracted.
Is Broadcom willing to provide the licences Tesco wants?
Broadcom says the software in question is end of life and no longer on sale; it says it offered Tesco a new deal but that Tesco did not meaningfully address the proposals.
When will the court decide these claims?
not confirmed in the source
SOFTWARE Dell wants £10m+ from VMware if Tesco case goes against it Retail giant's disty, reseller, and vendor all say they can't and won't sell Simon Sharwood Thu 15 Jan 2026 // 06:23 UTC…
Sources
- Dell wants £10m+ from VMware if Tesco case goes against it
- In Tesco vs. VMware, Computacenter warns, Dell, Broadcom
- Computacenter enters the fray against Broadcom in …
- a timely reminder to keep software licences under review
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