"The cloud providers can do the same by just scaling out white box x86 and throwing some Flash cards in the servers."
Fairly naive nonsense. If that were true then someone would have done it by now. No one has done it.
Sure, for OLTP, you can get pretty close, but without the reliability/availability required by large customers. As far as DWH's, noone even comes close to the performance of Exadata, at the scale that Exadata provides you. Sure, on smaller environments, less than a few TB of data, you can get close, but that's not much of a DWH these days.
Oracle sells to large enterprises that need performance and scale. I think Oracle will do very well with this service, as no one else can do what they do at this time. No, not MySQL, nor Postgres, nor Hana, nor...