VSCode is build to sell Azure and other Microsoft services, which they won’t if you use VSCodium. To a lot of people this will probably be less obvious than it is to anyone working in a Microsoft heavy enterprise organisation. The VSCode extensions integrate incredibly well with the Microsoft infrastructure you already have when you’re tied into Azure and the Microsoft AI services. It also ties in rather well with both Azure DevOps and GitHub, which are other services you’re then likely to purchase.

I don’t mean this as a negative thing as such. It’s just Microsoft being better at selling products to enterprise organisations than anyone else. One of the reasons Azure has grown from around 10% to 25% of the global market share during the previous past 5-10 years while AWS has actually lost its position is simply sales. When AWS first entered Europe they were a lot like Google Cloud, in that even if you were a municipality you would end up in an automated support loop. Then Azure came along and sold the same Microsoft support as they’ve always done, which is basically the best IT business partner you can have as an enterprise organisation, and naturally they won. It’s not like Amazon didn’t notice, a few months after Azure really rolled out we suddenly had an AWS account manager and direct phone support. But by then the ship had sort of sailed because of how Microsoft simply offers great value. Teams is another good example, it was a worse communications platform than what we had at the time, but it was “free” because it was attached to every user license we had, including the cheap educational ones. Almost nobody in non-tech enterprise will spend money on something they get for free, even if the free product takes years to become as good.

VSCode is the same. We pay for co-pilot and we pay for a lot of the Azure integrations, because why wouldn’t we? In the giant IT budget heading to Microsoft they are tiny costs which are in the “services” category in the excel sheet that heads for the budget. It is tiny, but when you consider just how many EU enterprise organisations buy these services it’ll amount to millions and for some services billions of revenue for Microsoft.

A good way to think of the “new” Microsoft strategy is similar to how cartoons are used to sell toys. You can watch Lego Dreamzzz for free on YouTube because Lego knows it means a lot of people are going to buy their Dreamzzz sets. It’s the same thing with VSCode. On top of that, they’re winning the familiarity game. When you hire a new developer, they’ll want to use what they know, which for many people is VSCode.