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June 2018
Internet Trends
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Welcome to The Cirrostratus Group June newsletter.

Microsoft has entered into an agreement to acquire GitHub and this month I've included a lot of
information about why this acquisition is so important to Microsoft and why they paid what they did.

It's also time for Mary Meeker's annual Internet Trends report. This year she has spent a good percentage of the report on eCommerce a favorite topic of mine.

I'm always interested in hearing about your experiences with delivering cloud applications.

Paul Ressler
The Cirrostratus Group  





 
  
MIcrosoft has entered into an agreement to acquire GitHub for $7.5B. Microsoft's strategy with this acquisition is to develop deeper relationships with more developers as explained in this Microsoft blog.

The price tag is substantial and has raised some eyebrows.  This Harvard Business School article is a good analysis of why Microsoft paid what they did. Here is an article on the same pricing topic from the Washington Post. It's all about access to developers.

It appears that Google may have been in the running to acquire GitHub but lost out. In many respects, Google seems the more obvious acquirer but I think Microsoft needs GitHub more than Google does so they were willing to pay more.







Internet Trends   
   
Mary Meeker of Kleiner Perkins Caulfield Byers, recently released the 2018 Internet Trends report. This report at 294 slides is packed with current information on the Internet overall. This year she spent a lot of time on eCommerce (slides 44 - 94) including the impact of social media and mobile. It's also clear that the innovation impact of the large players such as Amazon and Alibaba is substantial.

Gartner also released their Magic Quadrant for Digital Commerce with 6 leaders including Oracle, SAP, Salesforce, Magento, Digital River & IBM. One of the strategic trends is the integration of both B2C and B2B commerce solutions as demonstrated by Salesforce's acquisition of CloudCraze.









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