Microsoft Corp on Monday said it will soon make it possible for government clients to run its cloud technology on their own servers as part of a concerted effort to make Azure more appealing to local and federal agencies.

The pairing of Azure Stack, Microsoft’s localized cloud product, and Azure Government, the government-tailored version of Microsoft’s cloud, comes as competition against Amazon.com Inc for major clients in the public sector ramps up.

The new offering, which will be made available in mid-2018, is designed to appeal to governments and agencies with needs for on-premise servers, such as in a military operation or in an embassy abroad, said Tom Keane, Microsoft Azure’s head of global infrastructure.

Reuters

I think this is Microsoft trying to compete with Oracle and expand their current offerings to government customers.