GeekWire is profiling over the next few weeks some of the people and teams that are shaping the evolution of Microsoft in what we’re calling its “Microsoft 2.5” era.

A delicate dance: In August 2025, Microsoft moved to integrate GitHub into the mothership, under its CoreAI division, after having allowed it to run as a quasi-independent entity since acquiring it in 2018. At the same time, GitHub CEO Thomas Dohmke announced he would leave the company at the end of the year.

A number of developers feared the worst: GitHub would become just another arm of Microsoft and lose the community-mindedness that had made it attractive to developers of all stripes, and especially open-source ones.

GitHub Chief Operating Officer Kyle Daigle — a 13-plus-year GitHub veteran — had been one of the main champions of the need to “keep GitHub GitHub.” He maintained that stance even after he added the “Chief Marketing Officer of Developer” title for all of Microsoft to his COO role in January 2026.

So, how has Microsoft done this past year with managing GitHub? In an interview with GeekWire, Daigle acknowledged that GitHub’s relationship with Microsoft has changed since the end of the standalone CEO era. But the goal is no longer just “don’t break GitHub.” It’s to export GitHub’s community, developer-first ethos and learnings across Microsoft.

GitHub has influence beyond just the GitHub product set now, Daigle said. And the fact that Microsoft opted to consolidate its developer-facing messaging and community outreach under Daigle, someone who came from GitHub, not from Microsoft’s traditional DevDiv organization, gives weight to his claim.

“Bringing teams together — engineering teams and marketing teams and everyone that wasn’t talking to each other before — has been a really big part of the work,” Daigle said. “I see all these opportunities for GitHub to directly help and impact the overall mission of Microsoft versus keeping it cloistered in a way that isn’t helping either GitHub’s mission or Microsoft’s mission.”

These days, developer teams across Microsoft and GitHub are sharing foundations and the GitHub Copilot software development kit across organizations “in a way that would have seemed improbable before,” he said.

As Microsoft historians know, “Microsoft’s challenge isn’t creating products. It’s connecting them,” Daigle said.

Growing pains: At the same time, the rise of AI agents has strained GitHub’s infrastructure. Over the past few months, GitHub has experienced some significant outages, including one in August that lasted nearly eight hours.

GitHub officials have said they are migrating from their own datacenters to Azure to try to ease some of the capacity issues. Daigle said it’s not a simple lift-and-shift process; rather, it’s a major re-architecture for the platform.

GitHub is roughly 60% through its Azure migration as of early October, he said.

It’s working with Azure storage teams on separating compute and storage for the Git distributed version control system to help alleviate bottlenecks caused by developers and agents working concurrently in the same repositories. Developers and agents made 7.38 billion commits on GitHub in September alone, according to the company.

GitHub’s recent growth would not have been manageable without Microsoft scaling expertise and Azure support, Daigle said. GitHub is in a unique position of being able to request major additional capacity, such as millions of CPUs, and work with Microsoft teams to provision it, he said.

The GitHub app and agent store: GitHub got its start as a platform for source control and collaboration. But its role is evolving as part of its Microsoft integration. In addition to developing and supporting Microsoft’s most successful Copilot, GitHub Copilot, GitHub has an important place in Microsoft’s agent-centric strategy.

GitHub is becoming “the store for anything that needs to be coded and needs some verification,” Daigle said. “We’ll connect you to whatever the right tool inside of Microsoft is for you to run that or whatever tool you’re using, not just (from) the Microsoft product suite.”

In the new world order, GitHub isn’t just the store for apps. Increasingly, it’s also the store for agents, which means GitHub is acting as the developer layer for Microsoft’s “agent factory” strategy.

(Microsoft co-founder Bill Gates envisioned Microsoft as a “software factory” that could produce software at scale. These days, CEO Satya Nadella and team talk about Microsoft as an “agent factory,” helping customers create agents at scale.)

GitHub currently serves more than 200 million developers, plus an unknown but quickly growing number of agents.

Developers need to be thinking in new ways when it comes to agents, Daigle said. They need to consider ideas such as scaling application programming interfaces (APIs) for agents separately from humans, creating APIs designed specifically for agents, rewriting documentation and tooling so agents can consume GitHub efficiently, and treating agent access as a fundamentally different workload from human access.

In the longer term, Daigle said he expects AI to make software economically viable for smaller audiences, such as a family, an individual or a single team. The app-store model may change substantially in the coming years, as people create highly specialized applications. GitHub could help like-minded users discover software for specific interests, such as a narrowly focused household or community use case.

GitHub historically has considered anyone who has seen or touched code to be part of the developer community. Daigle’s vision is for GitHub and Microsoft to let both professional developers and newer builders create and run software and agents without needing to manage token costs, uptime, monitoring or operational overhead.

GitHub will have more to say about its plans at the GitHub Universe conference in San Francisco, Oct. 28-29. The event won’t focus on code generation alone; it will include information on tools covering the full lifecycle, proactive security approaches and how to determine whether software is working well after deployment.

“We’re looking to solve the core parts of the platform, like Git, like Actions, in a way that I hope will make people excited and feel like they can absolutely trust GitHub for the next decade to come,” Daigle said.