GitHub is the google docs for developers, which allows them to collaborate and share work with each other easily.
Though it boasts 28 million users globally and is the most popular open source code repository among developers, GitHub is not without its woes. Guillermo Rauch, a GitHub user and cloud-software start-up executive, tweeted that the deal is "one of the best things to happen to open source".
Microsoft has begun moving towards an open source software culture, proposing for example Linux on its Windows Azure cloud service.
"Most importantly, we recognize the responsibility we take on with this agreement", Nadella wrote. Firstly, the company assures that GitHub will remain an open platform and will operate independently. Microsoft exec Nat Friedman - who previously ran Xamarin, a developer tools start-up that Microsoft acquired in 2016 - may take that CEO role.
We both see the growing need for developers and the growing importance of software in all facets of our lives.
GitHub's current chief executive, Chris Wanstrath, will move to Microsoft as a technical fellow to work on strategic software initiatives.
Despite an overwhelming desire by some developers to liken Microsoft's motives and actions to the evil Android consuming Dragon Ball Z villain, Cell, most deals the company enters into are of mutual compromise and thorough financial investigations, and not just another resource for the company to gobble up in its ambitions to become their ideal corporate form.
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On Monday, Microsoft officially announced it was buying GitHub, shortly after Business Insider had reported that the two companies were working on a deal. The deal is expected to close by the end of the year.
So what does Microsoft want with GitHub?
San Francisco-based GitHub launched in 2008 as a way for software developers to upload, share and use code in a variety of languages for their projects.
But what if Microsoft decides to offer developers smaller incentives to use Azure, such as granting free services up to a certain amount of usage or making it much easier to deploy code to Azure?
"I can't get into the specifics of the conversations, but open source and open platforms are a winning business strategy", Wanstrath said. Many developers, however, feel that Microsoft today is very different from a decade ago and that it has a good record with regard to open source.
According to GitHub, as of March 2018 it has more than 27 million developers with 80 million repositories hosted.
He said the investment stemmed from the firm's theory that developers would drive the new economy, and "GitHub was at the epicenter of that transformation".