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I do not think so cause
Microsoft Cloud service is on operating system but windows server is a system , and on my little experiences I think there are users more than you could believe still using windows xp even there is ten seven eight or vista , that is what I think , , , THANKS ^_^
No.... Networks that use centralized management services like Domain controller must have on premises platform . Hybrid Cloud services include the premises as a part of it for SMB.
Absolutely No, most of enterprise Companies will still have on-premise to protect their network, conditional data on servers and documents, but about mid and small business yes they should move to cloud to save money and get professional supports.