Satya Nadella Talks Microsoft GitHub Acquisition

joining us first on CNBC Microsoft CEO Satya Nadella I saw to it great to have you thanks for being with us it's great to be here with you John thank you for having me so this is a big deal particularly and Microsoft's traditional approach to developers tell me I mean you don't buy github to make a lot of money so lay out if you if you will the strategic benefit of github for Microsoft how closely do you have to tie it in to things like asher and where do you keep it arm's length in order to try to maintain that sort of open source neutral rapport with the developer community yeah the first thing John is when you think about what's happening in the broader world every business is a software business it's a digital business whether it's precision medicine or precision agriculture personalized education or personalized banking is being built by developers in fact there's a piece of data from LinkedIn which says that a non tech hiring of software development is growing steadily at double-digit 25 percent greater than software engineer growth in tech so that speaks to the world that's going to be there going forward from a secular basis developers are going to be required everywhere it's kind of like what maybe in the early 90s was to equip knowledge workers with tools and services or what it was even in the 2000s to build SAS services for sales professionals developers SAS is going to be at the center of the digital economy and that's the real strategic rationale for it it's a secular growth market and Microsoft has heritage here we were a developer tools company first and now of course we are all in on open source and that's what really brings us together with github and we're going to operate it as an open platform for any language any framework any platform whether it's the cloud or on the client and really serve the developers with a SAS service that everyone requires just like we do for knowledge workers with office 365 or business applications with dynamics right so it's okay how quickly are you guys is Microsoft and the leadership that you're putting in place going to be able to make visible changes to github improvements that might bolster developers confidence in what you're going to do with the platform because rivals including gitlab are already trying to take advantage of this acquisition and get developers to export their projects from github into get lab their tool that shows those imports is down is getting so much traffic how quickly you're going to be able to show how Microsoft is gonna run this in a way that's gonna perhaps make developers happy ya know I mean it's most important thing with the community asset like github is to stay true to the core ethos of developer first that github has always had an at Friedman who's going to be the CEO post close came to Microsoft from xamarin he's someone who's a veteran of open source and he's going to lead the company Chris who's the CEO of github and I discussed a lot about the fundamental ethos of the company going forward will remain the same will operate it independently it'll be an open platform and I think most of developers out there will judge us by our recent actions and our actions going forward and we will have to earn the trust every day and so we're very very committed to it but we're excited because I think at the core Microsoft is a developer tools company and this is just something that comes very naturally to us and quite frankly earning the trust of our customers by our actions every day is what we live by now you said that github is going to operate independently but in terms of pricing and the approach to the developer how many times should we expect to see between github and asier or between github and visual studio type tools and how soon I mean in fact in already there is some amazing integrations between our tools vs code for example which is one of the most popular editors today is built as an open-source tool on github we have fantastic integration there we already have many azure services integration in fact just last couple of weeks ago at build our developer conference we showed a lot of the integration of the work flows between Azure and github but the most important thing though is is not just about Asha we welcome every cloud provider to integrate to github in order to be able to reach the github community and audience and give get-up members the choice of any cloud as well as any client mobile platform or iot platform so to us you will see us continuously integrate but again stay true to what is the core ethos and value proposition of our github such I wanted to switch focus if I may there was a New York Times investigation over the weekend that suggested Facebook share data with all sorts of device makers before Facebook was in a position to launch its own apps based software programs and Microsoft was listed in that investigation did you get data personal data of Facebook users what did you do with it and do you still have that data now I actually am NOT very familiar with the issue unfortunately I'm not I'll have to sort of get back to you on that but I'm not you know overall for us at Microsoft our focus has always been that it's not about our data it's our customers data whether it's the consumer side or it's the organizational or enterprise side we are just custodians of data and we work you keep the data secure and use the data with permission from users that's been our core principle that's how it's the core tenant of what we do with our cloud services and our client platforms would you therefore like perhaps Tim Cook did a few weeks back try and differentiate yourself from the likes of Facebook and suggest that whilst others might use data from cust customers for monetization purposes that that's something that the Microsoft has never done yeah I mean I do the thing is I you know for me one of the things which I find strange about tech company CEOs being asked about other tech companies is what it you know it's just not relevant to me what I want to stay true to is what is it that we Microsoft are in business for and how do we make progress and live up to the promise to our customers Trust is everything for us whether it is our cloud services our tools our client platforms and to that point absolutely we'll differentiate on that point of view and other companies may have different business models and different value propositions and they'll have to make their own choices and Santa finally on ma this is a sizable purchase any more on the horizon should we expect you to slow down for a while to integrate this the market seems to welcome it your stock is up on this news overall John I would say we always look for what our growth opportunities though in other words if there is a secular market segment that is going to grow will always be attracted to that but more importantly we need to have a real position that we can contribute something unique to that market in this case being a developer first company from the very start gives us confidence that we can bring real value to the developer community and lastly you have to be able to integrate and operate what we have done with Minecraft what we have done with LinkedIn gives us confidence that we can in fact acquire grow and have these communities thrive and that's what will basically be things we'll look for it's not that we have speeded up or slow down but we'll go by those three criteria is that a growing market can be add value and can be integrated well sounds like perhaps you got room for more Satya Nadella the CEO of Microsoft thanks for joining us first on CNBC thank you so much John hey there thanks for checking out CNBC on YouTube be sure to subscribe to stay up-to-date on all of the day's biggest stories you can also click on any of the videos around me to watch the latest from CNBC thanks for watching

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Keywords: CNBC, business news, finance stock, stock market, news channel, news station, breaking news, us news, world news, cable, cable news, finance news, money, money tips, microsoft, msft, satya nadella, nadella microsoft, microsoft github, github, github owner, who owns github

Id: m164XggdRGA

Length: 8min 37sec (517 seconds)

Published: Mon Jun 04 2018