Microsoft acquires GitHub

Today, Microsoft announced it is buying GitHub in a deal that will be worth $7.5 billion. GitHub hosts 80 million source code repositories, and is used by almost 30 million software developers around the world. It is one of the most important tools used by software organizations today.

As the leading cloud infrastructure platforms — Amazon, Google, Microsoft, etc — mature, they will likely become functionally equivalent for the vast majority of use cases. In the future, it won't really matter whether you use Amazon, Google or Microsoft to deploy most applications. When that happens, platform differentiators will shift from functional capabilities, such as multi-region databases or serverless application support, to an increased emphasis on ease of use, the out-of-the-box experience, price, and performance.

Given multiple functionally equivalent cloud platforms at roughly the same price, the simplest one will win. Therefore, ease of use and out-of-the-box experience will become significant differentiators.

This is where Microsoft's GitHub acquisition comes in. Microsoft will most likely integrate its cloud services with GitHub; each code repository will get a button to easily test, deploy, and run the project in Microsoft's cloud. A deep and seamless integration between Microsoft Azure and GitHub could result in Microsoft's cloud being perceived as simpler to use. And when there are no other critical differentiators, ease of use drives adoption.

If you ask me, Microsoft's CEO, Satya Nadella, made a genius move by buying GitHub. It could take another ten years for the cloud wars to mature, and for us to realize just how valuable this acquisition was. In a decade, $7.5 billion could look like peanuts.

While I trust that Microsoft will be a good steward of GitHub, I personally would have preferred to see GitHub remain independent. I suspect that Amazon and Google will now accelerate the development of their own versions of GitHub. A single, independent GitHub would have maximized collaboration among software projects and developers, especially those that are Open Source. Having a variety of competing GitHubs will most likely introduce some friction.

Over the years, I had a few interactions with GitHub's co-founder, Chris Wanstrath. He must be happy with this acquisition as well; it provides stability and direction for GitHub, ends a 9-month CEO search, and is a great outcome for employees and investors. Chris, I want to say congratulations on building the world's biggest software collaboration platform, and thank you for giving millions of Open Source developers free tools along the way.

Comments

MrPaulDriver (not verified):

Even when they were getting it wrong, I have always said that Microsoft should not be underestimated. And whilst they have mostly dominated the tech business, Microsoft has also provided great opportunity for the ecosystem that surrounds it and also for their competitors.

Look at Apple for example. Like it or not, Microsoft played a part in Apple's success; not least as a strategic partner and also as an investor at a time when Apple was in danger of failure.

At times, I have been met with some hostility in the Drupal community for imparting this view, but the reality is; competition is good. How else can we measure the value or quality of our own products without the gauge of a successful player to compare against?

As for software development platforms, cloud hosting and deployment providers. I have no doubt that more competition is needed and that Microsoft can no doubt provide this in bucket loads.

Add new comment

The content of this field is kept private and will not be shown publicly.

Plain text

  • No HTML tags allowed.
  • Lines and paragraphs break automatically.
  • Web page addresses and email addresses turn into links automatically.