Is Microsoft’s Acquisition of GitHub Just a Move for Enterprise Clients?

It is often argued that Microsoft's acquisition of GitHub in 2018 for $7.5 billion was a strategic maneuver to gain access to their competitors' source code. However, this assumption is based on a fundamental misunderstanding of the tech industry and the realities of software development. Microsoft, a company deeply rooted in proprietary software since the 1970s, would be well-aware that most of their competitors do not host their source code on platforms such as GitHub. Moreover, if they did, these code repositories would be swiftly removed the moment they hear about Microsoft's acquisition.

The Real Reason Behind the Acquisition

Microsoft's motivations for acquiring GitHub likely extend far beyond merely obtaining competitors' source code. As we will explore, the true value lies in the strategic advantages that GitHub can offer to Microsoft's enterprise client base, rather than any secrets of their competitors.

The Power of Windows and MS Office

Microsoft is no mere software player; they are a behemoth in the technology industry, with products like Windows operating on approximately 90% of user computing devices worldwide, and Microsoft Office being the de-facto suite for productivity. These are extremely valuable assets that provide substantial economic benefits without the need for rooting around competitors' source codes. Acquiring GitHub for $7.5 billion is thus a costly endeavor compared to simply hiring top-notch programmers, which is far more cost-effective.

Modifying and Upgrading GitHub

Many analysts still struggle to understand the exact reason behind the acquisition of GitHub. However, my best guess is that Microsoft will modify and upgrade GitHub, and then market it to their enterprise clients. This move is in line with Microsoft's established strengths and could be a strategic play to expand their enterprise customer base. Enterprise clients often require robust tools and platforms for managing their software development cycles, and GitHub is already a leading player in this space.

Enhancing Enterprise Client Solutions

One of Microsoft's key strengths lies in their ability to provide comprehensive solutions to enterprise clients. GitHub, with its open-source and enterprise-grade capabilities, could be a valuable addition to this portfolio. By integrating GitHub into their suite of services, Microsoft can offer a more seamless and robust experience for their enterprise clients, driving growth and market penetration in the enterprise software space.

Ace in the Industry: Enterprise Solutions

Enterprise clients often prefer solutions that are well-integrated and part of a wider ecosystem. Microsoft's acquisition of GitHub can be seen as a strategic move to strengthen their position in the enterprise market. By acquiring GitHub, Microsoft can offer a more comprehensive and integrated platform, making it easier for enterprise clients to manage their development processes.

Conclusion

Microsoft's acquisition of GitHub is certainly a strategic move, but it is not a covert effort to access competitors' source code. The acquisition is more likely a way to enhance their existing enterprise solutions and provide a more robust platform for managing software development. This move reflects Microsoft's broader strategy of expanding its enterprise client base and offering a comprehensive suite of tools and services.

Keywords: Microsoft acquisition of GitHub, enterprise clients, proprietary software, source code access, technology competition