Interestingly, it seems that Microsoft hast just renamed its "Visual Studio Online" (which was basically the same as this new product) to "Visual Studio Codespaces". So it seems that they are merging these two products. (See: https://visualstudio.microsoft.com/services/visual-studio-co... ) EDIT: They actually announced the renaming of the product a couple of days ago: https://techcrunch.com/2020/04/30/microsofts-vis…
Codespaces uses the same underlying technology as Visual Studio Codespaces to bring a fully GitHub-native experience to our GitHub users. We've been working with multiple teams on the Visual Studio side to make this happen (I work as the product lead on Codespaces)
I imagine the way Code spaces works is you spin up a container in azure with checked out GitHub branch, vscode on the browser then interfaces with the container(s).
Pretty neat idea if you can customize the docker container setup like a simple docker compose file or something.