TL;DR - GitHub is switching to Bitbucket's pricing model, but with a monthly charge of $9/user rather than $1/user.
Seems bizarre to me. The "enterprise" market they're chasing are largely Atlassian customers already, and Bitbucket has a competitive edge there with its JIRA integration. GitHub's distinguishing characteristic was a different pricing model, that for some organizations makes more sense than Atlassian's does.
If they start competing apples-to-apples, but at 9x the cost, why would any enterprise use GitHub unless they have a hipster CIO/CTO who just thinks it's a "cooler" brand?
Github is betting on stickiness aka lock-in.
That might prove to be bad bet.
Short term everybody who saves (small teams) will switch to new price model. No sane org will opt to multitude of price increase voluntarily. So github looses revenue short term.
If github forces the switch on everybody many big orgs will jump the ship one way or another. So github looses again.
Seems bizarre to me. The "enterprise" market they're chasing are largely Atlassian customers already, and Bitbucket has a competitive edge there with its JIRA integration. GitHub's distinguishing characteristic was a different pricing model, that for some organizations makes more sense than Atlassian's does.
If they start competing apples-to-apples, but at 9x the cost, why would any enterprise use GitHub unless they have a hipster CIO/CTO who just thinks it's a "cooler" brand?