Oracle bought Sun micro systems a few years ago. They do about 700 million a quarter in hardware sales. Oracle is spinning the story to blame the new sales people. This is interesting because Sun is a cloud play. I don't know if this is a reflection on Sun or the cloud business as a whole. Gotta do more research. I do find it ironic a company named SUN is a CLOUD play !!!
Oracle bought Sun Microsystem and kept the "old SPARC" line and has been trying to peddle that product. SPARC was not doing very well when Sun Micro had it and now that Oracle has bought it, it still isn't doing well. The world is going x86. Further, a lot of the cloud vendors are building their own servers now based on the x86 design so as your question relates to the cloud, the answer is that this is more industry dynamics rather then a reflection of the industry's health. The event might be misinterpreted by the market as a negative for INTC but actually, I view this as positive since Oracles loss is probably Intel's gain.
Oracle gets a large portion of their revenue from SW but they have their Exa* system business. These boxes are designed by Sun engineers and have Intel servers or SPARC CPU in them. When the sofware knows what HW it will be running on, it can be highly optimized for that platrom. Tuned versions of the SW can be loaded on the HW at the factory which is much different than Oracle building the SW by linking it on the customer site.