Microsoft Is Buying GitHub For $7.5 Billion

On June 4, 2018, Microsoft and GitHub made announcements about an
acquisition agreement happening by the end of the year. GitHub, the leading source code repository and development platform is being acquired by Microsoft for $7.5 billion in Microsoft stocks. This is one of Microsoft’s biggest acquisitions under CEO Satya Nadella, after the $28.1 billion LinkedIn deal. Nadella explained that the deal is sensible since Microsoft has always been a developer-focused company. Also, they have been the most active organization on GitHub. By joining forces, he believes that the 2 companies can empower developers to achieve more.

GitHub – Home of the World’s Developers

GitHub was founded in 2008 with the goal of making it easy for developers to be developers. Although Git, an open source distributed version control system is a powerful tool, back then, the idea of open source in business applications was not seriously considered. Cloud computing back then was not trusted, and Microsoft was very proprietary. However, after 10 years, GitHub is now being used by 28 million developers, with over 85 million code repositories used by countries all over the world. Now, it is being used by enterprises, including Fortune 50 companies. GitHub continues to host public, open source, and private repositories, with innovations of its own. Its Atom text editor and its Electron development framework is now very popular.

GitHub CEO and co-founder Chris Wanstrath believed from the start that open source can be successful in business setting. They created the company so that developers anywhere in the world can use Git, join in and find an easier way to work with others. If they are working on open source, they can work on it for free. As time passed, the GitHub team were able to work with the Microsoft team and found out that they agree on similar things. During the deal negotiations, they agreed that GitHub needs to remain an open platform for all. All developers will be able to use their preferred programming languages, tools, and operating systems. Furthermore, they can deploy their code to any OS, cloud or device.

Microsoft – The Most Active Organization on GitHub

Microsoft has undergone transformations since it was founded in 1975. Since becoming CEO in 2014, Satya Nadella has focused less on hardware and more on cloud computing. Nadella explains that Microsoft, like GitHub, is focused on the developer as well. This is more evident now with the platforms and tools they offer today. Microsoft’s core mission of building technology so that others can build technology empowers every person and organization in the world. He considers developers as the new builders of today, building the new era with their code. In fact, Microsoft is the most active organization in GitHub, with more than 2 million commits made to projects. The VS Code open source project built on the Electron platform is popular to many developers. They are now very active in the open source community, contributing to projects, and offering open source tools and framework.

From left: Chris Wanstrath, Satya Nadella, and Nat Friedman.

Satya Nadella mentions 3 opportunities becoming available with the acquisition of GitHub. First, they can empower developers now at every stage of the development cycle. Second, they can accelerate enterprise developers’ use of the GitHub platform through Microsoft’s sales and partners, and give them access to global cloud and infrastructure services. Last, they can bring their own developer tools and services to new audiences who are users of GitHub. It was also announced that MS Corporate Vice President Nat Friedman will be the new CEO of GitHub, while Wanstrath will be a technical fellow working with EVP Scott Guthrie to work on strategic initiatives.

Every Company Is A Software Company

Microsoft believes that today, every company is becoming a software company. Computing is now part of our daily life and work. Every aspect of society and the economy is affected and transformed by digital technology. Developers are at the center of it, and they drive business functions and processes across all kinds of organizations. GitHub believes that software development needs to become easier, more accessible, intelligent and open. As it does, more people can become developers, and existing ones can spend more time solving problems. Together, the 2 companies can advance the bright future of software development into a reality that comes sooner rather than later.

Jose Maria Delos Santos

Jose is a subject matter expert and member of the writing team for Project-Management.com and Bridge24. He has written hundreds of articles including project management software reviews, books reviews, training site reviews, and general articles related to the project management industry.