Yep, I switched and got a buddy over to them as well. As far as what it's costing them, cloud hosting is a high margin business and it gets them on the map I suppose. I'm hesitant to do actual business with Oracle, but if they provide competent commodity cloud hosting for cheaper than the other guys, why not?
That's my favorite part of Oracle's always free tier[1], in comparison to other offerings.
[1] https://docs.oracle.com/en-us/iaas/Content/FreeTier/freetier...