Microsoft paying $7.5 billion for GitHub. Microsoft has announced it will be paying $7.5 billion (roughly Rs 50,300) for popular code hangout GitHub as the maker of Windows. This which blend two opposite corporate cultures. The Tech giant Microsoft, based in Washington state has the source code which is not openly available or modifiable, which is exactly the counter of GitHub’s philosophy.
GitHub was created in 2008, it allows developers to manage software cooperatively and has more than 28 million users around the world. GitHub is a web based hosting service for version control using Git. Git is generally used for computer code, offering all the distributed version control and source code management functionality of Git, also adding its own features.
Why Does Microsoft Want It?
The Chief Executive of Microsoft Satya Nadella said, “Microsoft is a developer first company, and by joining forces with GitHub we strengthen our commitment to developer freedom, openness and innovation”. He also added by saying- “We recognize the community responsibility we take on with this agreement and will do our best work to empower every developer to build, innovate and solve the world’s most pressing challenges.”
The Veteran tech firm said “it will acquire GitHub for $7.5 billion in Microsoft stock. “
Microsoft is trying to finalize the deal by the end of this year subject to customary closing conditions and regulatory reviews. Microsoft also stated through its website that – the GitHub will retain its developer-first ethos and will operate independently to provide an open platform for all developers in all industries”.
Developers will continue to be able to use the programing languages, tools and operating systems of their choice for their projects — and will still be able to deploy their code to any operating system, any cloud and any device.
Microsoft has started inclining towards an open source software culture, proposing such as Linux on its Windows Azure cloud service. It has also started providing training with Linux and others as well.
The new CEO of GitHub will be Microsoft’s Corporate Vice President Nat Friedman, founder of Xamarin and an open source verteran.
Currently the Github’s Chief Executive is Chris Wanstrath, he will move to Microsoft as a technical fellow as he will work on strategic software initiative. He wrote on the GitHub Blog that “he could never imagine” on the merging news of open source and business are like “ oil and water” a decade ago. He also said that Microsoft and GitHub have already collaborated on projects and their vision for the future closely matches our own”. He also commented on saying “both believe that software development needs to become easier, more accessible, more intelligent, and more open, so more people can become developers and existing developers can spend more time focusing on the unique problems they’re trying to solve.”
Microsoft has reported in April that its earnings rose 35 percent to $7.4 billion (which is roughly Rs 49,600) in the fiscal third quarter, having revenue up 16 percent to $2.6 billion (which is roughly Rs. 1.8 lakh crores). Earnings increased by gains in tis core cloud computing operations for business. Microsoft believe that the expected acquisition of GitHub may have negative impact on 2019 earnings but will have a positive impact in beginning of 2020.