Microsoft Buys GitHub for $7.5 Billion, Moving to Grow in Coding’s New Era

In Category GitHub News Posted by err0r On 01/16/19 Comments 0
Microsoft, fully embracing a model it once saw as a threat, said on Monday that it was buying GitHub, an open software platform used by 28 million programmers, for $7.5 billion.

The deal is a bid by Microsoft to gain ground in the internet era of software development, where applications increasingly run on remote data centers — on so-called cloud computing.

Amazon is the leader in the cloud market so far, but Microsoft has transformed itself in recent years to become a strong No. 2 as a supplier of cloud computing services. Its vital Office productivity applications and database software are available in cloud versions.

Microsoft also competes with Google, IBM, Salesforce and others in the cloud marketplace. All of them are trying to lure software engineers to use their cloud tools and services. The more programmers on a company’s platform, the more software applications are created, attracting customers and still more developers — a flywheel of growth and profit.

“The strategic battle in the tech world is for developers,” said Frank Gens, chief analyst for IDC, a research firm. “For Microsoft, the GitHub deal is about strengthening and widening its relationships with developers.”

Satya Nadella, Microsoft’s chief executive, said the deal would advance Microsoft’s ambitions in cloud computing and bring smarter software to every industry, on any digital device.

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