Apart from being really easy to use and taking some pain out of git (arguable since we're talking about developers but could be worth more if they branch out to authors etc.) the major value of GitHub is the brand name.
It's a tool based network effects grab of sorts which is why the social components of GitHub are very important (imo). However I'm not sure the network effect is as big as it needs to be. Theoretically it's not that hard to migrate the entire network (-the revenue generating parts but it's the OS stuff that generates the network effect).
I'm not entirely sold that the brand is strong enough and can't be overtaken by competition. So far they seem to have a friendly relationship with GitLab et al. but it will be interesting to see how they'll handle those in the future. My guess it they'll try to acquire whoever they perceive to be the biggest fish.
That being said, the valuation seems acceptable to me given the current standing of GH. While the switching cost is low in monetary terms (and technically not hard) if you compare it to other brands where the switching cost is low in monetary terms like Coke vs. Pepsi the valuation makes more sense.
I'd also argue that developers tend to not switch around wildly as long as the tool is perceived to do it's job well (which GH does).
It's a tool based network effects grab of sorts which is why the social components of GitHub are very important (imo). However I'm not sure the network effect is as big as it needs to be. Theoretically it's not that hard to migrate the entire network (-the revenue generating parts but it's the OS stuff that generates the network effect).
I'm not entirely sold that the brand is strong enough and can't be overtaken by competition. So far they seem to have a friendly relationship with GitLab et al. but it will be interesting to see how they'll handle those in the future. My guess it they'll try to acquire whoever they perceive to be the biggest fish.
That being said, the valuation seems acceptable to me given the current standing of GH. While the switching cost is low in monetary terms (and technically not hard) if you compare it to other brands where the switching cost is low in monetary terms like Coke vs. Pepsi the valuation makes more sense. I'd also argue that developers tend to not switch around wildly as long as the tool is perceived to do it's job well (which GH does).