Monetary results from Intel Corp this week and Microsoft Corp brought into sharp relief the challenges as they shift more of their emphasis the onetime PC associates face.

Microsoft has found powerful long term increase in parts of its cloud company, applications catering and a mix of services to corporations transferring computing functions to distant data centers run by external suppliers.

While sales for its main cloud services business Azure more than doubled last quarter, the firm said in Thursday the “sensible cloud” section that contains it found only 3 percent sales increase in the interval, ’s bringing in report. And operating profits for the office fell by 14 percent, in part representing non-cloud products contained under its umbrella, including conventional server applications.

Chipmaker Intel has a clear path to increase for its cloud operations, and investors have remained doubtful.

“Wintel” computers running Windows on Intel processors predominated the personal- computing age, which is finishing as more people turn to mobile phones for corporations deemphasize desktop computers and computing needs. Both Microsoft and Intel, run Satya Nadella and by comparatively new CEOs Brian Krzanich, are betting their companies on the cloud. Image on Microsoft and Intel market value: here

At Intel, in a quarter where the firm announced plans to cut at 12,000 occupations as it changes away from the PC, data center business sales increased 9 percent to $4 billion. That section contains the processors powering cloud data centers, where the firm says it’s doing nicely.

“Intel is drowned out significance not as high profile.

Microsoft’s best known play in the cloud is Azure, a set of services for storage and computing along with applications for software developers.

The company confronts important pressures, although Intel has done well in its class, controlling the marketplace for chip processors that are the brains of data center computers.

Customers are spending an ever-bigger part of their technology budget on applications, according to research company Gartner. And Intel’s customer base for data center processors is merging into several large firms, including Google, Facebook, Amazon and Microsoft from a a group that is much broader.

The cloud sellers have more power over Intel and are savage cost negotiators,” said Sturiale. Although Intel said that revealed the fact that more low-cost processors were gaining ground the quickest typical costs of data center processors dropped 3 percent in the last quarter.

Intel could endure as large datacenter builders like Facebook design their own data center hardware. Up to now, Intel has held its own, but its customers could expand their cost cutting to processors.

With analysts this week in a call, Krzanich said Intel’s “top to bottom” comprehension of the cloud-based data center and sharp eye on rivals would help it stay.

“Always paranoid about the opposition, constantly driving,” he said. “And you understand that we live or die by the functionality of our product.”

Intel makes other promising products, including processors for Internet-connected apparatus known as the Internet of Things. Those processors could take off if a hit consumer or company merchandise in that market comes along.

And Microsoft may be overemphasizing far it’s come. Much of its “intelligent cloud” company includes applications for conventional on-premises servers and other companies with little to do with the cloud. A spokeswoman said the section’s name “is to align to the dream” of constructing the cloud.

Microsoft also is not bad at playing up its cloud company.