Microsoft to take on Amazon with $7.5 billion GitHub deal

A Microsoft cloud... sorta

Microsoft have announced an agreement to acquire GitHub, the software development platform and web-based hosting service for version control using Git. Microsoft is the top contributor to the site, and has more than 1,000 employees actively pushing code to repositories on GitHub.

Microsoft says that it expects to complete the acquisition by the end of the year.

The two have confirmed that Github will operate independently of Microsoft, as an open platform using all programming languages, tools and operating systems for any project.

Satya Nadella, Microsoft CEO, said that the acquisition is in line with the tech giant's ethos of being a developer-first company and that it signifies Microsoft's "commitment" to strengthening this ethos. GitHub calls itself the world's largest code host with more than 28 million developers using its platform.

For his part, Wanstrath sees where the doubters are coming from, but he noted that successful recent Microsoft acquisitions like the $26.2 billion LinkedIn buy and the $2.5 billion purchase of the "Minecraft" publisher Mojang should give GitHub users some comfort. While Microsoft appears to be embracing the open-source community these days, it wasn't very long ago that it viewed open-source development as a threat to its core business model. In case you're wondering what will happen to current CEO Chris Wanstrath, he'll continue his work as a Microsoft technical fellow.

Satya Nadella, Microsoft CEO, speaks May 7 during a conference in Seattle.

Microsoft has new plans for GitHub, is it speculated to be a step towards new open models or possibly the crypto-world. There is at least some expectation that Microsoft will incentivize developers to support Microsoft's Azure cloud platform, but in the Monday release, the company behind Windows and Xbox tried to assure developers that GitHub will remain as open and free as ever.

As Bloomberg reports, Microsoft is believed to have acquired GitHub.

The deal reflects the company's ongoing pivot to open source software and seeks to further broaden its large and growing development community, Moody's analyst Richard Lane said.

According to GitHub, as of March 2018 it has more than 27 million developers with 80 million repositories hosted.

He appealed to developers' sense of trust in GitHub, saying Microsoft will work to make the company even better by using the resources at its disposal.

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