Businessmodel of GitHub

Customer Segments

GitHub has a niche market business model, serving a specialized customer segment. It caters to individuals/organizations who need a place to host their Git code. Its two customer groups are:

• Individuals: The company offers Personal Plans for developers who want to work on their projects either alone or with collaborators in private repositories.
• Organizations: The company offers Organization Plans for businesses who want to host code and manage teams on GitHub. It also offers Enterprise Plans for those who want to host code/manage teams on their own servers or a private cloud with their existing security controls. ### Value Proposition

GitHub offers two primary value propositions: customization and brand/status.

The company’s system allows users to integrate their favorite tools in order to build a wider variety of software. It provides permission for a wide variety of tools, including Slack, ZenHub, Cloud9, and Appveyor. Also, users have the option of keeping their work private or sharing it publicly.

Regarding reputation, the company claims to be the largest code host in the world, with 14 million users and 35 million repositories. In 2015 it revealed it had raised $250 million in its most recent funding round and was now valued at $2 billion. Its status has attracted a number of prominent investors and partners.

Channels

GitHub’s main channel is its website, through which it markets its offering to customers. The company also offers a wide range of free training courses that customers can use to learn more about coding. The classes are available in in-person and live, web-based formats.

Customer Relationships

GitHub’s customer relationship is primarily of a self-service, automated nature. Customers utilize the service through the main platform while having limited interaction with employees. It also provides a thorough “Help” section on its website with detailed answers to numerous potential questions. Customer support is primarily limited to e-mail assistance rather than via phone.

Key Activities

GitHub’s business model entails maintaining and updating its software platform for the developers and organizations who utilize it.

Key Partners

GitHub has formed a number of partnerships for nonprofit pursuits. It has collaborated with the White House and the Department of Housing and Urban Development (HuD) to equip low-income houses with free broadband wireless Internet access. The program, called “ConnectHome”, is to pilot in 27 cities and one tribal nation, with services including coding education and technical training.

The company has also launched GitHub Student Developer Pack. As part of this program, it has allied with 12 companies to give students free access to various developer tools so that they can “learn by doing.” Students must be at least 13 and enrolled in a degree- or diploma-granting course of study.

Lastly, GitHub is part of a technology partnership with Clutch, an enterprise-focused DevOps technology and services firm. The deal provides Clutch with access to resources through GitHub’s partner program designed to speed implementations for large and mid-market customers.

Key Resources

GitHub’s main resource is its proprietary software platform, which has more than 14 million users, and the engineering employees who maintain it. The company also relies heavily on instructors for its wide range of training courses (online and in-person).

Cost Structure

GitHub has a cost-driven structure, aiming to reduce expenses through significant automation and low-price value propositions. Its biggest cost driver is likely administrative expenses, a fixed cost involving personnel and operations. Other major drivers are in the areas of customer support and sales/marketing, also fixed costs.

Revenue Streams

GitHub has one revenue stream, the subscription fees it garners for its hosting services. It maintains the following pricing tiers:

• Personal Plans: For developers working on their own or with others; starts at $7 per month
• Organization Plans: For businesses hosting code/managing teams on GitHub; starts at $25 per month
• Enterprise Plans: For businesses hosting code/managing teams on their own servers or private cloud; starts at $2,500 per year