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.
"“So if the performance is dropping, do you call the server manufacturer, do you call the networking manufacturer, do you call the load balancer manufacturer, do you call the storage manufacturer? They typically point the finger at the other guy and you spend weeks and months trying to debug and get your cloud to work."
https://azure.microsoft.com/en-gb/overview/azure-stack/
There might well be a commercial niche for providing Azure Stack hosting in non-Microsoft data centers.