I would think all of the remaining hardware teams will wind up under the cloud except for possibly some very small teams to maintain existing products.
The big question then becomes what hardware will be in the cloud going forward and whether Oracle will build that hardware or just buy it. I do think the answer lies with the bare metal team. From what I've seen in the past there has been very little direction provided from the bare metal team to the hardware groups. Most of the bare metal guys came from Amazon, right? Perhaps the answer lies there. Does anyone have some insight into what Amazon and possibly some of the other bare metal cloud providers do in terms of buy vs build? Is there some unique value (cost, availability, simplicity of management, etc) that Oracle can really provide in the cloud by building their own systems? If there is, I haven't seen it yet.
My guess is that a very small amount of hardware will be left as part of the cloud team. That team will likely have a different role in that it will be more focused on managing vendors that will actually provide the systems needed in the bare metal cloud.
Another will card to consider in all this is the re-emergence of AMD in the server space. Ultimately there will be a need to provide new AMD systems in the bare metal cloud. I'm not sure Oracle wants to go down the path of building such systems, so there would likely be some hardware support needed to manage those system vendors as well.
Unfortunately regardless of the answers, Oracle won't need as many hardware folks as it currently has now.