Intel and Microsoft face different challenges in shifts to cloud

Financial results from Microsoft Corp and Intel Corp this week brought into sharp relief the challenges the onetime PC partners face as they shift more of their emphasis to cloud computing. While revenue for its flagship cloud services business Azure more than doubled last quarter, the company said in Thursday’s earning report, the “intelligent cloud” division that includes it saw just 3 percent revenue growth in the period. Much of the difference in the companies’ fortunes boils down to Microsoft’s fundamental business as a software company versus Intel’s as a hardware company, said Nick Sturiale, a venture capitalist at Ignition Partners. In a call this week with analysts, Krzanich said Intel’s “top to bottom” understanding of the cloud-based data center and keen eye on competitors would help it stay ahead.