Microsoft plans to continue supporting existing Azure RemoteApp customers through August 31, 2017, after which time the service will be discontinued. New purchases of Azure RemoteApp will end October 1, 2016,
From Microsoft's blog post today explaining what's happening:
"Customers have provided us consistent feedback that they want a comprehensive, end-to-end, cloud-based solution for delivering Windows apps. The best way for us to deliver this is with Citrix through XenApp "express", currently under development. XenApp "express" combines the simplicity of application remoting and the scalability of Azure with the security, management, and performance benefits of XenApp, to deliver Windows applications to any employee on any device. We will have much more to share on this offering through the coming months." Citrix officials described the situation a bit differently, saying Microsoft will be assisting Citrix in developing a next-generation Citrix XenApp and associated XenDesktop service.
From Citrix' August 12 post on the move:
"In conjunction with this effort, Microsoft recently announced its intent to wind down the Microsoft Azure RemoteApp service and assist Citrix in its effort to develop the next generation of the service. This future Citrix XenApp "express" offering will combine the simplicity and speed of Microsoft Azure RemoteApp with many of the enterprise capabilities of Citrix XenApp to revolutionize app delivery from the cloud."
Azure RemoteApp, codenamed "Mohoro," allows users to deploy Windows applications and access them for a variety of devices. Microsoft made RemoteApp generally available in December 2014. When word first leaked out about Microsoft building RemoteApp/Mohoro, I heard from some of my contacts that Citrix was (unsurprisingly) not very happy about Microsoft's move into the space.
Azure RemoteApp wasn't designed or positioned like other desktop-as-a-service offerings (which typically stream apps). Instead, it was more of a remote-access service. Microsoft positioned it as being complementary to the company's existing on-premises remote desktop services offering, as customers use the same RDP clients to connect.
Update: The Azure team is sending emails out to RemoteApp customers that claim the decision to drop RemoteApp is "based on customer feedback and market dynamics." From that email:
"On August 12, 2016, we announced our plan to retire Azure RemoteApp. Based on customer feedback and market dynamics, we adjusted our strategy to focus more on the cloud platform that underpins finished desktop and application virtualization services. Because of this, we're expanding our relationships with partners who build out those full solutions, most notably Citrix. Citrix is our long standing partner in this space, and we recently expanded our relationship together to address these and new scenarios for joint customers using the Azure cloud."