Microsoft announces $7.5 billion GitHub acquisition


GitHub is the world's leading software development platform and it is home for modern developers and the world's most popular destination for open source projects and software innovation. The startup has made a name for itself as a place where developers learn, share and work together to create new software.

The acquisition makes sense, considering Microsoft's gradual embrace of open source software, as well as the closure of its competing developer service; Microsoft's own code repository, CodePlex, was killed off in December.

Open-source programming enables designers to tinker with, enhance, and offer code - an approach that undermined Microsoft's plan of action. Perhaps, for GitHub to remain a free option while evolving its search, tools and indexing features, some developers will allow Microsoft to charge larger businesses for more vertically integrated experiences with its software stack?

Moving forward, Microsoft is going to have quite the task on its hands proving to developers that it can both improve upon GitHub's past debacles, as well as its own numerous slip ups. It can't replace CEO and founder Chris Wanstrath, who stepped down 10 months ago.

"As developers, we knew this was a false dichotomy - we had been using open source software successfully in a business setting for a long time". The company announced Monday that it is buying GitHub for $7.5 billion. Setting the company back $7.5 billion, Microsoft's acquisition of GitHub will bolster the company's hosting services when the deal closes later in the year.

The obvious and jaded answer is that Microsoft wants to push all of those developers to run their software on Microsoft's cloud, Azure.

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In total, more than 28 million developers now share over 85 million code repositories on GitHub, and Microsoft wants to come closer to this incredible community, supporting devs at "every stage of the development lifecycle - from ideation to collaboration to deployment to the cloud".

"Today, developers need to find and assemble services from many locations and pay for them separately", Microsoft told investors in a prepared presentation.

You can read his full blog post here.

Speaking with GeekWire via phone this morning, Wanstrath declined to detail his discussions with Google or Amazon about the acquisition of GitHub by Microsoft.

Friedman said in a conference call with Wanstrath, Nadella, and CFO Amy Hood, that GitHub will have "new and compelling" capabilities with Microsoft's help. It also benefits from a powerful network effect-as more developers have joined it, GitHub has become even more attractive to other coders. He also said he deleted his GitHub account. Despite the rivalries, there's actually a fair amount of overlap between products and services among the cloud rivals already: AWS supports several Microsoft technologies, including Windows and SQL Server, on its cloud.