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Why Did Acquire Github? Key takeaways from the Microsoft-GitHub deal

n June 4, 2018, Microsoft announced its talents, platforms, and businesses into its network of acquisition of platform business. GitHub, in a deal worth US$ 7.5B. Github is Of late, Microsoft has released open-source tools and O currently used by >28M developers, who in languages, and started supporting and even using Linux turn represent >1.5M organizations across an array of on Azure. All the moves, coupled with the GitHub deal, industries.This acquisition is one of the largest ever done portend to a future where GitHub and Azure are more by Microsoft, on the back of its LinkedIn acquisition for closely knit together. US$28.1B, and the acquisition at US$8.5B. #4: Right arsenal to have in a Cloud-first, #1: Microsoft should keep GitHub and Cloudled World independent The cloud business has been at the core of Microsoft’s There are many developers who have felt sour about the growth in recent years. GitHub acquisition potentially acquisition and have vowed to leave GitHub. Many of the enables Microsoft to play a more significant role within the GitHub’s peers and competitors have seen a significant developer community that builds software spike in migrations of GitHub members to their platforms. on cloud platforms. Through this acquisition, Microsoft Though these migrations are minimal, Microsoft should would aim to get these developers on board its Azure set things right by vowing to keep GitHub independent. platform, taking the fight to Amazon AWS.

#2: Going back to its roots #5: Will positively impact the Microsoft GitHub, being the go-to open management enterprise business respository, has gained popularity amongst developers The GitHub acquisition will have a clear impact on and companies who host entire projects, documentation enterprise business due to the growing importance of and code on it. The GitHub acquisition takes Microsoft the developer community in the enterprise segment. back to the early 1990s when it relied on a community of GitHub has seen strong growth in its enterprise business, developers to build applications on its windows operating generating US$100 million in sales in 2017 with its system. enterprise offering, which installs the codemanagement The GitHub acquisition will enable Microsoft to benefit platform behind the user’s firewall. in a Smart and Connected World from the marriage of new battery of developers with its platforms and solutions. We #6: Joining the dots: Astute acquisition strategy will potentially see creation of many new use cases by Microsoft has been known for its solid products catering developers, on Microsoft platforms. This will potentially both to consumer as well as enterprise segments. take Microsoft to the position it enjoyed in Offline OS However, Microsoft has never been acknowledged with Space, especially in Personal Computing. technological disruptions. However, if one checks the last few acquisitions of Microsoft, there is a clear focus on #3: Focus on Azure; Clear Departure from what they are betting on, i.e. AI, IoT, Cloud, Social Media, ‘Windows Only’ Ecosystem Gaming, and VR. The GitHub acquisition signals a departure for Microsoft The GitHub acquisition would add to the continuum. towards a more open work culture, moving away from GitHub coupled with LinkedIn would provide Microsoft the windows-only ecosystem in operated in, thus far. with an unenviable access to rich data. For instance, Under , the new Microsoft is building on its Microsoft could use LinkedIn to leverage GitHub data on sustainable competitive advantage, by embracing outside with specific skill-sets.

| A CyberMedia Publication www.dqindia.com July, 2018 | 51