by Merv Adrian | June 6, 2018 | Comments Off on Microsoft Nods Again to “Open” With Github Deal
This post co-authored with my esteemed colleague and Gartner Vendor Lead for Microsoft, Ed Anderson.
Microsoft, already a significant contributor to GitHub, and a frequent contributor to open source over the past several years, doubled down this week. It decided to use some stock from its share buyback program to make a “$7.5B” deal to acquire GitHub and place Nat Friedman at the helm. Friedman, a long-term champion of Linux and open source and well-known luminary in open source communities, joined Microsoft when it acquired his company, Xamarin, in 2016.
Friedman’s credibility will help a good deal. Microsoft’s interest is in further elevating its open source profile; there is already a lot of skepticism from developers. But developers are part of Microsoft’s DNA – it has always been a company for developers, and the growth of open source communities in the internet era offers an opportunity to revisit and re-energize that aspect of its profile. While it has had mixed results in some of its acquisitions over the years, its ownership of LinkedIn has produced subscriber growth and revenue growth, while maintaining an effectively open environment. Its ability to bring some stability to GitHub and provide the needed resources to help it grow make for a powerful opportunity.
Microsoft has not articulated how it will make money through this acquisition, although it is consistent with the need to attract developers to the Azure platform. Microsoft has hinted at plans to increase the connection between GitHub and Azure – although they’ve said any features would be open to any platform, further broadening the story.
The deal is subject to US and EU regulatory approval, which Microsoft expects by the end of 2019. In the meantime, Microsoft will have to demonstrate to the developer community (communities) that GitHub remains a safe and trusted environment to build and managed code.
Read Complimentary Relevant Research
Cloud Computing Primer for 2018
Cloud is evolving from a market disruptor to an expected approach for traditional and next-generation IT. Our research offers actionable...
View Relevant Webinars
Monetizing Public Cloud Opportunities in China, Russia and India
All IT markets are directly or indirectly disrupted by Cloud Services. Gartner predicts that through 2020 the Cloud shift will grow to...
Comments or opinions expressed on this blog are those of the individual contributors only, and do not necessarily represent the views of Gartner, Inc. or its management. Readers may copy and redistribute blog postings on other blogs, or otherwise for private, non-commercial or journalistic purposes, with attribution to Gartner. This content may not be used for any other purposes in any other formats or media. The content on this blog is provided on an "as-is" basis. Gartner shall not be liable for any damages whatsoever arising out of the content or use of this blog.