The reorg as described would result in massive declines in revenue and would not solve any problems related to selling cloud. Selling at Oracle is extremely difficult due to complex licensing policies and bureaucratic rules. New sales reps are bewildered and ineffective.
SaaS, hardware, on-prem software, IaaS, and PaaS have completely different selling procedures and contracts - one person cannot do all of it. The bulk of revenue comes from on prem tech (database) license renewals; a CIO is not going to negotiate a multi-million dollar deal with a college kid over the phone.
Seriously, if they try this, we're talking about huge year-over-year revenue declines. If you're a sales rep at Oracle trying to sell IaaS and PaaS, you've got dozens of new products in your bag that are several years behind AWS, with the exception of database.
There aren't enough Oracle cloud data centers, and industry analysts bad-mouth your products. You show up at a customer site and find that an Oracle Digital (telesales) college kid just called the customer and told him not to buy cloud but to buy on-prem hardware instead.
You deal with the fact there are several "clouds" at Oracle, generation 1 / Nimbula or whatever they call it, Bare Metal, and "Cloud at Customer" which is just leased on -prem hardware. Each offering is different and has its own limitations and challenges, and finding the truth about the products without the product manager hype is impossible.
Customers are screaming that Oracle is too difficult to do business with and offers too many products and too many choices, but they keep adding products and may be reducing customer-facing salespeople, architects, and sales consultants, who are the only ones who can help.
All of this info is public knowledge and experienced by most Oracle customers and sales reps.