Bonum Certa Men Certa

GitLab the Company, Just Like GitHub (Now Part of Microsoft, Going Through Several Rounds of Layoffs This Year, Even Office Shutdowns), is Sinking Deep Into Debt and Showing the Risk of Outsourcing

Video download link | md5sum f61ec70272c7d04fdf6f006ec21bc29a Serfs and Sharecropping With Git Creative Commons Attribution-No Derivative Works 4.0



Summary: 'Free' hosting for Git may not be a viable business plan; be wary and careful not to offload creative work to debt-saddled firms (that work being text, code, videos etc.)

THIS post is related to the trend of digital sharecropping we often allude to in the context of social control media such as Twitter or Diaspora or the Fediverse. Many people still live in a fantasy land wherein the Web is full of 'free' services ripe for exploitation. As the old saying goes, there's no free lunch* and anything that seems free may in fact be temporarily free (grace period, sometimes for market penetration and vendor lock-in).



This post will focus on GitLab as an example, but we're not singling out GitLab. There are many others like it, including Clownflare.

"Git is Free software. Some of the Web interface suites are not."Remember that Clownflare is not free. Clownflare is a trap. It's also a cancer on the World Wide Web.

Self-hosting isn't a matter of "making a point". It's a principled and practical decision based on pragmatism. Some people will never learn until they're betrayed time and time again, forced to restart from scratch over and over (ad infinitum**).

Git is Free software. Some of the Web interface suites are not. Some are a hybrid of sorts. Some are purely proprietary, e.g. GitHub. Microsoft is trying to pull an E.E.E. on Git, with stuff like the github/gh command along with proprietary extensions at the Web level and editors' level. Be sceptical of Trojan horses.

Let's examine the situation of GitLab as a company (not GitLab the software):

gitlab-debt
Notice how quickly debt is growing



GitLab Net Income 2021-2023
Income in the red



GitLab shares
GitLab shares over-inflate the
'worth' of this company (not a unique problem)



The short story is, GitLab took ~1,200 million dollar in debt this year while laying off staff. GitLab has a fictional market cap of 7.40B for a company in debt and which cannot make money (losing hundreds of millions each year; number of employees in 2023 is 2,170 and losses per head about $100,000 per annum). It's like Twitter Junior.

"GitHub had two rounds of layoffs so far this year."It's probably the same with GitHub's losses (debt too), but Microsoft does not break down the numbers that way. GitHub had two rounds of layoffs so far this year.

As per this report, published months ago: "investor one-year losses grow to 54% as the stock sheds US$1.4b this past week..."

It says "GitLab didn't make a profit in the last twelve months," further complicating the prospect of a turnaround. No wonder they wanted to just raise more money instead of making money. No wonder GitLab wanted to shut down 'inactive' repos, but stopped only due to mass uproar, which people won't forget (it's not free hosting, it's a trap).

"We cannot help but wonder about sourcehut."Just how much money does Microsoft lose on GitHub each year? Has Microsoft loaded debt onto its subsidiaries to hide deficits? Again, just as a reminder, this past February Microsoft GitHub laid off 10% and then it went further, closing down entire offices and firing entire teams, even in India. GitHub is a money sink. With hiring freeze in place, maybe GitHub got rid of 30% of its staff since the start of this year. GitHub is not doing well.

We cannot help but wonder about sourcehut. They too mass-deleted some Git repos and introduced new demands for payments (to keep some repos online). "That's a smaller shop," one reader explains. "Again there is a problem with growth of storage costs, like with YouTube or Wikipedia, but flat income."

So the take-home message is, if you use Git, roll out your own. Don't rely on others to do it for you 'for free'. They stand to lose money, so it won't last forever. Some exchange control for 'gratis', or in other words take away your freedom/autonomy for a freebie.

"The costs of running YouTube go up, not down, just like Twitter."Now, to use the example of video, the other night we shared this alarming video about YouTube. YouTube is one of the next Twitters. It cannot make money. It can only put off both creators and audiences. So what will happen next? Mass layoffs? That did not work for Twitter. Rebrand? Also did not work for Twitter. What's the "grand plan"?

The costs of running YouTube go up, not down, just like Twitter. Bloat and data storage, more "moderation" staff etc. YouTube has not reported whether it makes money... since 2015. So we can safely assume something is very wrong. Because YouTube is not making money (same as GitHub/GitLab). So it's hiding that and only talks of "revenue" (while defrauding the advertisers... clickfraud and such). As a last resort, courtesy of new management who realise they cannot make money, now they "steal" from creators. What message does that send?

A critic with bad experiences (learning from mistakes made in the past) can promptly point out the importance of self-hosting. Separation is also worthwhile (the video above mentions examples). The bug-tracking is integrated into some of the above Web interfaces, but that is a complexity that might make it worth separating, not outsourcing. For tracking of issues/bugs/incidents/wishlists one can use RT, Mantis, Bugzilla, Trac, Landscape, OTRS and maybe even Jira (I once installed it on a home machine from the 1990s and it worked, albeit slowly). I've had hands-on experience with most of these, also as the administrator. They're simpler to manage than Git. The learning curve is worthwhile. ____ * A related saying is: "If you're not paying for the product, you are the product!"

** One could point out the folly of building digital structures on properties which can vanish overnight because they are owned by and controlled by others and probably without overlapping priorities.

Recent Techrights' Posts

All That's Left of MSNBC (Microsoft-NBC) is Microsoft NOW
When plutocrats and large corporations (even deep in debt) buy all the communication channels
Accessibility Isn't Overrated
Making things simpler typically means better accessibility
Microsoft said “GitHub and its leadership team will continue its mission as part of Microsoft’s CoreAI organisation.” But it's just an empty shell created earlier this year.
In short, it's not too clear what Microsoft has just done except dumping GitHub - i.e. mostly a Web site that loses a ton of money (it always lost money) - into some mysterious new bucket
 
A Lot of What Happened in Twitter Was Bots, Botfarms, and Troll Farms. It's Even Worse Now (Under X.com) and People Are Noticing.
Last month we said the same was happening in YouTube
Microsoft May Have Become - at Least Partially - Like a Boiler Room Scam
Giving imaginary salaries using imaginary tokens based on imaginary value (with restrictions on conversion to cash)
In Vietnam, Microsoft's Search Engine "Market Share" Fell to Almost 0%, CocCoc More Than 5 Times Bigger
Why are people still investing in this company?
The Register MS, Paid to Promote "AI" Hype, Does "Sez" (Says) Pieces
every bubble-funded "news" site tries to make it a story about "AI"
Many Companies Are Run by Liars Who Ride Other People's Money
Or steal it
Before CoreAI There Was Builder.ai
GitHub isn't about "AI" (just a bunch of lies and storytelling for shareholders' patience)
Microsoft Windows in Croatia at New Lows
We've been keeping track of this trend for a while
Using the Best Tool/s for the Job: RSS Feeds and RSS Readers
Use RSS feeds. Reject those "modern" Web things
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, August 19, 2025
IRC logs for Tuesday, August 19, 2025
Gemini Links 20/08/2025: Neovim, XML, and Alhena 5.2.9
Links for the day
The Register's Slopfest
Remember when The Register UK (yes, UK) had better standards?
Latest Version of Windows (Vista 11) is a Failure 4 Years After Its Fake 'Leak'
Vista 11 became more scarce this month
Improving Our Archives
Our old archives are still accessed a lot. Making them better is well worth the investment.
Things One Learns as a Litigant in Person at the UK High Court
Don't fear the official manuals
Slopwatch: Lots of Fake Articles From Fake "Linux" Sites and About "Linux"
Google says it's committed to "AI" (it means slop, not AI); that seems like an excuse to dodge accountability
Links 19/08/2025: "Eavesdropping on Phone Conversations Through Vibrations" and Air Canada in Chaos
Links for the day
Gemini Links 19/08/2025: Niche Spaces and "AI Pasta Sauce"
Links for the day
Links 19/08/2025: "NASA Is Giving Up on Climate Change Science" and "Earth's Continents Are Drying Out at an Unprecedented Rate"
Links for the day
Phil Wyett evidence & Debian Zizian plagiarism, modern slavery tendencies
Reprinted with permission from Daniel Pocock
IBM Layoffs in MCC, or Marketing, Communications and Corporate Social Responsibility (CSR)
IBM and Microsoft inflate their share price by circular financing
In Many Countries People Move Away From Vista 11
Vista 11 has been available for download for 4 years already, but adoption has been poor
Desktops/Laptops Fall to All-Time Lows in the UK, So Why Does British Media Quote a Famous Criminal on "End of the Smartphone Era"?
mobile usage (for Web access) has never been higher, based on an Irish surveyor, statCounter
The Groklaw Web Site Has Been Hijacked by Scammers
Groklaw.net isn't a safe site to access at this time
The Register MS gets Lazy, Uses Slop
Unlike 3-D renderings or "Classic" CG, slop images aren't quite original and definitely not fair use
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, August 18, 2025
IRC logs for Monday, August 18, 2025
Online Safety Act Does Not Tackle the Worst (and Biggest) Culprits
if our governments are serious about tackling online harms, then they need to look closely at GAFAM and social control media giants
Chat Control (1 and 2) in the European Union Sends the Wrong Message
This is an EU law
Slopwatch: Google News and Serial Sloppers (Fake Articles About "Linux")
Calling out the culprits
Gemini Links 19/08/2025: Digital Legacy and Chat Control
Links for the day
English Law Misused by Americans and Irishmen Against Brits is Unfair
There's always a way to improve existing laws
Overly Maximalist, Expensive, Localised Patent Law is Dooming Western Companies, Argue 3-D Printing Champions
We've long warned (over 7 years already!) that China's approach to patents will impress WIPO by gaming the totals but will doom the West
Links 18/08/2025: "Microsoft Store" Gets Increasingly Hostile, "Cracking Abandonware DRM"
Links for the day
Gemini Links 18/08/2025: Summer "Gone" and Web Reposts in Gemini
Links for the day
Microsoft's Windows in Gabon: Still Moving Down
What is this Unknown? Who knows...
Links 18/08/2025: LLM Reputation Damaged, Australia Catches Google Foul Play
Links for the day
Geeks Like GNU/Linux
The technical community seems to be consolidating and rallying around GNU/Linux
GNU/Linux is 486 in Ireland
4.86% that is
End of Reliable Media
it makes the world a worse place, it renders the Web a misinformation machine
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, August 17, 2025
IRC logs for Sunday, August 17, 2025
GitHub Won't Last Much Longer
Many things at Microsoft are going to go the way of the Skype (or "dodo"). GitHub will be among those.
We've Never Used Large Language Model (LLM)
we just never used an LLM
"Secure Boot" is a Security Problem, Not a Solution
These people don't try to improve security but to undermine security
Gemini Links 18/08/2025: Retro and Endless Escape from the WWW
Links for the day