Microsoft Corp is buying GitHub for $7.5 billion in stock. In an article by Dina Bass and Eric Newcomer of Bloomberg News, the company will bring in house a community of 28 million programmers who publish code openly and extending a shift away from a strategy of shrouding its software in secrecy.
Microsoft’s deal with GitHub will speed the company’s moves into the cloud and artificial intelligence spaces. Microsoft for the past decade has tried to do more in house and less for programmers to look at the software. Both Bill Gates and Steve Ballmer championed developers building proprietary software for Microsoft, rather than the kind of open-source projects found on GitHub.
Under the new President Satya Nadella has been increasingly relying on open-source software to open-source software to add programming tools, and the purchase of GitHub will be a key part of the way Microsoft writes its own software. Mr. Nadella acknowledged that he will have to earn the trust off GitHub’s users. For now GitHub will continue to operate independently in San Francisco as opposed to Seattle where Microsoft has its headquarters. The other deals above $2 billion Microsoft has made are: LinkedIn for $26.5 billion and Mojang video games $2.5 billion
Linking to dividend paying stocks, the purchase of GitHub means the management of Microsoft is changing or adapting to new styles. All companies have to adapt as society changes and it is important to see if your company is changing or can adapt to what is and can be.
There are more questions than answers, till the next time – to raising questions.