One Step At A Time; Microsoft On Integration With GitHub
Listing of job openings in the tech market show that Microsoft is looking to increase its head count for the GitHub division which as platform that allows software developers to store and track software updates. The firm which was purchased hardly a year ago as a startup at a cost of $7.5 billion highlights the acquisition strategy of Microsoft in which acquired firm is not integrated into the main firm very closely. They are instead allowed to work independently and collaborate with others to use their expertise where required. Its strategy with large deals has evolved after early errors during the era of Steve Ballmer.
When in 2012 Microsoft took over $6.2 million write down of its online advertising firm aQuantive that it had purchased in 2007 for a sum of $6 billion that didn’t bring the profits they expected, they had to integrate it with an existing group firm called Online Services division that was working with another technology. But its business strategy with GitHub seems to be a lot more different as is evident in the recent job positing where it has been mentioned that though GitHub is a part of Microsoft it will remain independent.
Microsoft has been an avid user of GitHub even before the acquisition in 2016 the firm had nearly 16000 open source contributors on the platform as per data released by GitHub. During 2018 Microsoft was ranked higher than other competitors for open source contribution to GitHub from its employees and its hands-off approach is evident even in the case of LinkedIn which runs as an independent business unit after it was acquired by Microsoft a couple of years ago for $26 billion. GitHub has nearly 31 million developers that use it on a regular basis and its enterprise version has been adopted by large enterprises after it became available through enterprise agreements to them.