IIRC, it wasn't the cloud per se that did them in, it was the 2008 financial crisis.
Ironically, Sun had Utility Computing for a buck a CPU hour way before anybody grasped the concept in the mid-2000s. When Oracle took over then they immediately killed this (became known as Sun Cloud) and had to start way late with Oracle Cloud. If Sun had kept going then they could have been where AWS eventually ended up. Oh well.
The final knife was the cloud. AWS was a huge paradigm shift for how one provisions hardware to Unixy software, and Amazon was a Linux shop and Solaris had nowhere to fit.