The CEO of Microsoft, Satya Nadella, has once again demonstrated his ability to make quick and effective decisions, solidifying the company’s position in the cloud computing market. In a recent report from the New York Times, it is highlighted how Nadella approved the acquisition of GitHub for $7.5 billion in just 20 minutes during an executive retreat at the Suncadia Resort in the Cascade Mountains.
Since taking on the role of CEO in 2014, Nadella has radically transformed Microsoft, a nearly 40-year-old company. Under his leadership, Microsoft embraced cloud computing and open-source software that customers could freely customize, significantly boosting its cloud business. Thanks to these strategies, Microsoft has doubled its market share in cloud computing, positioning itself as number two behind Amazon, followed by Google.
The $7.5 billion GitHub deal
The acquisition of GitHub, the world’s leading developer collaboration platform, was one of Nadella’s most prominent strategic moves. Although Microsoft executives had been debating the possibility of buying GitHub for years, it was in 2018 when Nat Friedman, a former Microsoft executive, presented the idea to Nadella and other leaders during an annual executive retreat.
According to the report, Nadella posed the crucial question: “Do we have the right to do this? Will they still use GitHub if it’s run by Microsoft?” Executives discussed this matter for 20 minutes. Finally, Nadella slammed the table with his hand and said, “We should do it.” Weeks later, Nadella agreed to purchase GitHub for $7.5 billion in June 2018.
At the time of the acquisition, Nadella stated, “We will accelerate the use of GitHub by enterprise developers, with our direct sales and partners, and access to Microsoft’s global cloud infrastructure and services.”
Nadella’s quick and decisive decision not only strengthened Microsoft’s position in the cloud computing realm but also demonstrated his commitment to the developer community and open-source software. This acquisition has allowed Microsoft to support global developer collaboration through the company’s cloud infrastructure, further solidifying its influence in the technology market.