GitHub discontinues building gems
github.com
github.com
Everything goes according to plan, you establish a new market, lots of free customers get introduced to your product and love it and you skim off the cream that want power or enterprise features as your paying customers. What stops a new competitor from swooping in and saying they have something very similar, they aren't going to be spending anything supporting free customers, and with presumably lower costs, charging their customers less? With complete focus on paying customers, they might provide a better product too.
I don't argue with you that freemium works in the short and probably medium term, and it's great advertising. You have a great service going, and I think in your case, you build a lot of good will among developers hosting public code for free. But in the long run, in the general case, and assuming no network effects, I think there's a way to undercut such business models by focusing 100% on the paying customers.
I also think that they should have given advance notice. Cutting features that I (as a paying customer) rely on without notice and then telling one week later that they won't bother to bring it back is not a good way to keep my trust.
You still can. See: http://litanyagainstfear.com/blog/2009/10/09/on-gem-forking/
I'm currently in Rio for the Lua Workshop and many people here have said they'll be moving their projects from CVS or SVN over to Git and Github. I am guessing that within a few months Github will be the defacto standard place to host Lua projects just like it is for Ruby. Hopefully they have at least 50 megabytes of free space to accommodate all of us. ;-)
Then another option would have been to do the same thing for non-Ruby projects. Integrate with CPAN; build eggs (or whatever it is that Python uses); create Cabal packages.
The problem is with the amount of time we spent working on, maintaining, and fielding support requests for rubygems, the last thing we wanted to do was multiply that work supporting additional systems.
This decision wasn't made lightly, but the service and support will be better off with it gone.
If your Github project is a fork, then edit the gemspec and prepend your Github username to the gem name.. then build and push. Problems all solved :)
I moved my gems to gems.neurogami.com. It's easy enough, and I trust myself more than the Next Hot Host.
While I appreciate the value of It Just Works when comes to installing gems, there's also value in users making deliberate choices about where they get they code they are installing.