Up until a couple of weeks ago you basically had 3 options to develop a SharePoint app as shown in the figure below – one of the options – Autohosted apps was however available in preview mode and therefore not recommended for production use. Mid May Microsoft pulled the plug out of this one – see Update on Autohosted Apps Preview Program
As outlined by Andrew - Update on Autohosted Apps Preview Program – this is probably a good thing because although the deployment model was quite flexible you were never sure what were the actual limitations with regards to allocated CPU time,data out,storage and memory usage. So for now, we have to wait and see what enhancements become available for provider hosted SharePoint apps to make it as flexible in deployment as autohosted apps but while still providing you with sufficient control and troubleshooting capabilities.
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