They provide you with the convenience to push to Azure with a push of a button. These extensions are automatically recommended when you modify various file types.
You know, I've heard this claim before (that the strategy behind VS Code is to make deploying code to Azure easy), but it never made much sense to me. Deploying a service to production straight from an IDE/editor sounds like a recipe for disaster. I say this as a daily user of Visual Studio, VS Code, and Azure.
Making it easy to setup a demo project means things may stay on Asure because that's the fastest path to production.
Thus it's about business migrating from Demo (Asure) > Production (Asure) vs Production AWS > Azure.
Basically this, but they also push things like Application Insights, which is heavily tied to Azure.
The VS Code editor is also embedded in the Azure web portal. So by getting people using Code they may find it easier to up-sell to Azure. In fact, Code started life as the Monaco editor in Azure and was spun out into a separate product.
Oh my god someone mentioned App Insights organically! My day has been made.
Dev here, our strategy for AI is Azure-first, but not Azure only. While we provide first class monitoring for ASP.net services running on Azure, we also have lots of open source SDKs available for major languages, as well as first class Java and node.js SDKs and are trying to bring some of our other open source SDKs to the same level.
We totally get that ASP.net isn’t the end all be all and that people run other types of services, so we’re trying to bring App Insights to as many of these services as possible.