While I haven't looking into it all that deeply, I'd say it's a replacement for vSphere and cobbled together hardware and networking, all with a centralized management interface/API.

Traditional hosting still, to some extend, struggle to provide the API, on demand, drive requirements for modern developers, who expect to be able stand up a bunch of virtual machines in a minute or so, especially if you also want a new private network, maybe some IPs and storage pools.

Having a single provider for your entire stack, software, hardware and network avoids the annoying back and forth with vendors, blaming each other. Having just one support contract for your entire stack is a pretty large plus.