No one is going to bet the farm on that solution. I'd be surprised if big SaaS vendors like Atlassian or DropBox go with it.
But on the other hand I can see F500s (oil & gas companies, big engineering and defense firms, etc.) getting a rack or two to run their cloud-like stuff. They would not be taking much risk; this would be one system among many others they have, and it will have a life of 5 to 7 years anyway (a few million dollars and 7 years is peanuts for an oil & gas or mining company whose CapEx goes into the billions, over 50+ years horizons).
I think the value is in having a cloud-like system that doesn't require an entire IT/Ops team to run.
Ignoring hardware reliability, thanks to the integration, their solution should be more reliable than whatever byzantine solutions are currently used in their target market. I've worked in a shop (a well-known name that I won't mention) that had a mix of "chat ops" and Perl scripts integrated with JIRA where you could request a Linux VM through a JIRA ticket and get it automatically provisioned, I assume from some big chassis running VMWare, and then use git+Puppet to configure it. It works, but it's a lot of software from different sources and there is always one thing or the other failing. And the security of all that stuff is probably patchy, regardless of audits.
That being said, this solution is the mother of all lock ins...
I could see it used for the non-critical part of a company's infrastructure. I would not run production stuff on it, but it could work for development systems, test boxes, etc. Basically give developers access and let them create and destroy as many VMs as they need, whenever they need.
But on the other hand I can see F500s (oil & gas companies, big engineering and defense firms, etc.) getting a rack or two to run their cloud-like stuff. They would not be taking much risk; this would be one system among many others they have, and it will have a life of 5 to 7 years anyway (a few million dollars and 7 years is peanuts for an oil & gas or mining company whose CapEx goes into the billions, over 50+ years horizons). I think the value is in having a cloud-like system that doesn't require an entire IT/Ops team to run.