This a) is not new, and b) is not unique. The other clouds have their equivalents: Azure Stack, Google Anthos/Distributed Cloud.

For most part, with any of these you get the steep pricing of cloud with the maintenance overhead, lack of flexibility and lengthy commitment periods of on-prem, meaning they're unlikely to be a sensible option unless you have regulatory requirements that force you into it. One use case is wanting to run the same cloud stack globally, but having a market where there is no local region and local law requires that data stay in country.