Both of you are correct, it's just PS now is a division that handle the service while Azure is more of the server hardware. PS now is more of Xbox Xcloud or Livenow or Previous gaikai, They are more of software division. But they are not responsible for cloud hardware A.K.A the server it self . 

Both Xbox and PS devisions might be unware however they will most likely not care either. It doesnt affect there jobs.

EG- Why would a PS worker care which brand network there hooking up to? Aslong as its good and why would a Xbox worker care that Azure is being shared with PS?
It doesnt matter.

Both Xbox and PS devisions might be unware however they will most likely not care either. It doesnt affect there jobs.

EG- Why would a PS worker care which brand network there hooking up to? Aslong as its good and why would a Xbox worker care that Azure is being shared with PS?

It doesnt and shouldn't matter.

Double Post

Yes like Hollygamer said, Psnow is streaming but the infrastructure was through Amazon,so they are simply shifting from one service to another,seems like the MS deal is a win win  with Sony strengthening their position as a key player in delivering optics to the ever expanding AI sector and MS gains a customer and development partner all in one.