Microsoft seems to have two frameworks and solutions for cloud on-premises services: Azure Pack and Azure Stack.
What is the difference between them and why would I chose one over the other one? Or are these solutions complementary?
What is the difference between Azure Pack and Azure Stack?
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This question is rather broad, but the main difference is that the Azure Stack offers the exact same API's which Azure offers, while Azure Pack only mimics Azure. As an example, Azure Stack can utilize ARM templates to deploy resources (natively), so you could deploy ARM template, test it in your DC (on Azure Stack) and then deploy this template to Azure and it would work exactly the same.
You would want to read up on different topics\blog posts online. ps. Also, I would imagive Azure Stack and Azure would have a better integration, like the ability to manage one from the other, but that day is yet to come.