I think there is a massive market for 100% cloud-compatible local deployments. In my personal experience every .Net shop I've seen would love to be incorporating more Azure goodness locally, but can't as they're cloud specific techs which bump into the realities of deployment and maintenance.

Personally, I think MS crapped the bed a little by taking Azure Stack off of commodity hardware and onto a combined hardware/software solution. Being able to deploy Azure-compatible solutions piece-meal locally would be a massive boon to governments, healthcare operations, and anyone working on a more thorough migration to the cloud.

Most of the EU, for example, has privacy regulation that makes cloud hosting impossible in some situations. Having a 'local Azure' would make it highly reasonable have all apps architected around Azures components and technology. Without the local deployment though you're kinda stuck with each foot in a different canoe... Hybrid infrastructures are highly favorable to DevOps and multi-party development scenarios.