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GitHub Business Model Analysis GitHub 商业模式分析.pdf
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GitHub Business Model Analysis GitHub 商业模式分析.pdf
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GitHub Business Model Analysis
ELU 605: Écologie du Logiciel
Fred Gonsalves, Jie Song
June 17, 2018
1 Introduction
The purpose of this paper is to serve as a continuation of our previous study on the intellectual
property of GitHub, the largest web-based code sharing platform in the world. Since the writing
of the previous paper, GitHub has officially been purchased by Microsoft for $7.5 billion [1] and
this paper will seek to understand the business model that made GitHub attractive enough of a
venture for such a sale to happen.
As a quick introduction, let us discuss who GitHub is. Table 1 below gives us some of the latest
statistics concerning GitHub. GitHub was founded in 2007 by three partners - Chris Wanstrath,
Tom Preston-Werner, and P. J. Hyett. It was written in Ruby and was the first code sharing plat-
form to provide distributed version control (using Git), as opposed to a centralized version control
system being offered by major competitors at the time SourceForge, GoogleCode, and CodePlex.
This meant that developers could clone an entire instance of a project and merge modifications
much easier than ever before. GitHub’s popularity grew exponentially fast as evidenced by Fig-
ure 1. In addition to using Git, GitHub is also popular today for a number of other services it
provides that are discussed in the following section.
Number of users (2017) 24 million
Number of total organizations (2017) 1.5 million
Number of active repositories (since Sep, 2016) 13 million
Number of total monthly visitors (2015) 32 million
Table 1: GitHub in numbers [2].
Figure 1: The growth of users and repositories of GitHub from 2008 to 2012 [3].
1
This paper seeks to study in detail the business model of GitHub. The paper will utilize
Osterwalder’s business model canvas [4] as a guide. We will start by reviewing the value proposition
of GitHub, that is, what exactly GitHub has to offer in terms of services. We will then study the
infrastructure that GitHub has built to provide the services it does. Next we will discuss some
other options available for code sharing and how GitHub’s services differ from its competitors. We
will look at how GitHub has segmented the market to whom it offers its service and the various
propositions it offers for each segmentation, before concluding with a short discussion on GitHub’s
finances.
2 Value Proposition
GitHub’s core proposition is a service that allows users to host their software projects on GitHub’s
servers, while providing distributed version control system services of Git. GitHub and its com-
petitors service the software development market - both open source, as well as private. This is
an especially important market as the open source community grows, and as services like GitHub
provide a forum for developers to showcase their talents and for software companies to headhunt.
GitHub’s services are provided in the form of a "Freemium" model - that is, certain services are
provided for free, additional services are paid for.
2.1 Free services
Having a free account at GitHub gives users an unlimited number of free repositories hosted on
GitHub servers. The only limitation is that all these repositories must be public. These reposito-
ries can be viewed by anyone, including visitors on the site. They can be forked, downloaded, and
contributed to by other users. Users also have the ability to add unlimited collaborators, manage
a repository’s topics, and limit certain interactions with the repository [5]. Collaborators on a
project may push, pull, and fork a repository. They may even manage milestones and issues, and
merge or close pull requests. These public projects can have wikis, which are documents written
by the owners of the repository to help new contributors understand the goal of the project, as
well as get valuable technical information.
GitHub’s free repositories are extremely popular among developers. GitHub currently hosts
millions of free repositories, including many powerful projects like MySQL and Ruby on Rails used
by GitHub themselves to power the platform.
2.2 Premium Services
In addition to all the free services mentioned above, premium users have access to a range of
other services provided by GitHub. GitHub currently promotes four different options for its paid
customers depending on their needs. GitHub’s market segmentation strategy is discussed in detail
in the Market Segmentation section. The four products, each individually catering to a specific
market, include: Developer, Team, Business, and Enterprise. Table 2 below is a summary of some
of the key features offered in each product.
2
Service Developer Team Business (GitHub.com) Enterprise
24/5 support with 8 hour response
Team permissions
Organization permissions
Fork permissions
Instance permissions
Team sync
Amazon Web Services
Microsoft Azure
Google Cloud Platform
Hosted on GitHub.com
High availability user configurable
Backups
Locally controlled backups
Monitoring
Custom Upgrades
Table 2: GitHub Product Feature Comparison [6].
GitHub’s paid options are built around a business structure that provides three core services
to its customers - assurance, adaptation, and assistance - levels of which may differ from product
to product. The key feature of the Developer pack is that it comes with unlimited private repos-
itories. The Team plan offers more organizational and administrative tools for a more effective
and structured collaboration. GitHub’s Business plan is targeted towards software development
companies requiring round the clock assistance. Finally, GitHub Enterprise is targeted for software
companies who want the ultimate control over their projects, ie. an instance of GitHub can be
mounted on the company’s own private server for greater control, security, and organization of
projects within the company. Enterprise customers may even host their repositories on Amazon
Cloud Services, Google Cloud Platform, and various other cloud services supported by GitHub.
Various other services are also available to GitHub Enterprise customers and can be found on their
website [6].
Figure 2: GitHub’s ARR per product in 2016 [7].
3
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