Philips hue running locally?

Technically possible, but not recommended by either company. It turns out that hue bulbs are not good Zigbee repeaters when connected to the smartthings hub, and they can damage the reliability of your Zigbee network.

The following FAQ is old, but still applies:

FAQ: Do I need the Hue Bridge/Hub to Use a Hue Bulb with SmartThings?