That's basically what Pivotal Cloud Foundry is right now, isn't it? You can apply Terraform of the like to on-prem VMs and public cloud or something like that. I have a way better idea for public cloud providers to ween enterprise clients off their data centers. Offer to buy their hardware off of them. Rack them in their own data centers for whatever workloads they can handle. Clients get out from under their sunk costs. Cloud provider gets a long-term deal locked in. Everyone is happy.

As of the beginning of the year, Pivotal is now a part of VMware Tanzu and collaborating in many of these areas within VMware.