>> What is the analogy here? Microsoft wants to embrace and extend... compiling software? and will kill off... existing ways of compiling software? How will this work?
Microsoft is embracing free development tools that compete with purchased tools they sold. SourceSafe vs Git, Eclipse vs Visual Studio.. those are terrible examples but you get what I mean. So you make a free tier of VS, you buy git hub etc.
Extend.. you try to make your tools as ubiquitous as possible. You convince hobbyists and students that they should use your platform because it is more powerful /useful.. it will help you get a job later. This part of the strategy seems really hard because there are so many development tools that are open source, and lots of companies like IBM, Oracle, Google want to keep one of their own safely under their control.
Extinguish. You add features that only really work on your platform, or work better. Think about trying to develop for Android not on Android Studio. I haven't used VS for a Windows project in a long time but I assume it has similar advantages. Or Intel's compilers used to be the first to work with new instructions.
Ideally people would "have" to use your platform and you can start taxing them for that, either with fees or requirements that they implement your initiatives. Think about Google pushing Kotlin.. Android Studio kind of defaults to that now. Of how it supports Firebase, or defaults new projects in segments. I am not mad about that it or anything, it may just be a good idea. But it shows how if you control the dominant tech platform you can support your initiatives.
This isn't something that keeps me awake at night because a number of tech companies are working to promote their own semi-proprietary or open development platforms. But the fact that so many go to the trouble to do that shows it is a concern.