It would be nice to see In-Place OS Upgrade in Azure. Currently we are working on a project to replace all VM with OS Windows 2008 because
Microsoft will be officially ending its support for Windows Server 2008 R2 editions. The problem we are facing is we don't have support from vendor to reinstall the application on new platform and the only workaround offered by Microsoft are as following:

1. Create an Azure VM that's running a supported version of an operating system, and then migrate the workload (Method 1)


2. Download and upgrade the VHD of the VM (Method 2)