Well, they just have done that!

https://www.engadget.com/2019/05/16/sony-microsoft-partnership-azure-cloud-streaming/?utm_campaign=homepage&utm_medium=internal&utm_source=dl

The partnership effectively allows Sony to tap Microsoft's technology to help with areas that the company has struggled with. Sony has taken heat for years over slow download speeds, something that typically hasn't plagued Xbox owners. Using Azure data centers and eventually moving over to Microsoft's cloud solutions should allow Sony to focus on its own platform rather than trying to solve technical issues. Sony will also tap Microsoft's artificial intelligence services to improve the user interface in its products.

So what does Microsoft get out of the deal? Aside from adding a major customer to its already very profitable cloud business, the company will gain access to Sony's image sensors, which it plans to use to create "new intelligent image sensor solutions." The companies appear primarily focused on how to improve the functionality of the sensors for enterprise customers, though consumer solutions -- an improved Kinect-style system, for instance -- are also possible.

I guess PSrock had the last laugh :-

The irony of gamers bashing the Cloud only to realize they will be using the exact thing they bashed.

For those comparing Gaikai to Azure, please look up the difference. Gaikai is built around Streaming and from what we know cannot achieve Cloud Computing unless Sony spend $$$. Also Gaikai cost $380m compared to Azures $30b cost. Just one of Azures Datacenters is worth twice of the entire Gaikai network at $700m.

OT - Back on topic, why does Sony need to source outside of MS? Why is it an issue with Sony using there services? Sony are not dumb, they will go to whats best for there intentions and Azure is built with gaming in mind. Lets see how it goes

wtf is Azure, and how does it do anything for Sony? What the hell do cloud services have to do with gaming

Believe it or not, this is a very smart move by Sony. Their focus is on electronics, software and entertainment. They don't want to enter another competing market in order to ensure that their services stay up to date.

Microsoft has an already established cloud infrastructure, and contrary to what many fans might think, competing companies can work together for the best interests of each other.

As for your question, you might think of cloud computing as only SaaS (Software as a Service), like most people think with website hosting, but Azure offers entire virtual networks and virtual machines under their IaaS (Infrastructure as a Service) platforms on Azure. Their server farms are in many key locations through the world, and the service is very cost effective, when compared to hosting own hardware, sysadmins, etc.

One of the main concerns that I think Sony would be seeking is rapid scalability. For instance, under the proper conditions, extra resources can be automatically allocated to meet with spikes in demand. It eliminates the need for server hardware forecasting, downtime with setup/configuring etc, and eliminates points of failure through redundancy.

I don't care about online features of the console, but this may be a very cost effective option fro Sony online services.

Who was bashing "the cloud" in general? Any examples? I'm forced to assume you're talking about blowback towards Crackdown 3, and the narrative that was being spun around it. From the well founded doubt that was present at it's unveiling, to the vindication of said doubt that enveloped it's launch, all the way to the ghost-town that is the current, cloud assisted, Crackdown 3 multiplayer landscape. That's the only "cloud bashing" I can recall, and it was well deserved.

Many believed the power of the Cloud didnt exist even when Cloud computing is a thing and was proven. Sure it was prematured by MS at the start but i still read comments just like yours and think, ironic. I agree it wasnt ready for consoles but i never daubted the technology.

Makes me laugh because those who hated it or bashed it this gen are going to be using it next gen and even funnier that they will be using MSs power of the cloud as well. Just like the haters who hated digital gaming to now have accepted digital gaming. The console industry is a funny place.

No, Sony is using Microsoft cloud infrastructure (aka Azure) to host their own services. In particular for gaming. Probably they'll use Azure to host PlayStation Now. This way can deploy in many more countries faster and have more simultaneous users. This way they don't have to buy capable servers, arrange for networking etc. This part is arranged by Microsoft and a Sony pays a fee based on amount of cores, storage, ram. It's a cheaper solution then continue order PS3 and PS4 hardware to put in their own server setups. 

What is a virtual network? What is a virtual machine? What aspect of Sony's services would this be used for? How would it be used for that aspect of Sony's services? Are you saying that this doesn't have anything to do with streaming games?