Actually, standard Azure rack is on the order of $1.1 mm of hardware depending on SKU if I am not mistaken. So I would guess, it could be more like $2 mm. There is the aspect of management and other vendors Dell/EMC + VMware like you to pay way more than the hardware costs for e.g. VXRail/ vSphere licences. That is the real target.

And maintenance. I like the idea of having to give them a key to your house to replace a disk when the SMART alert phones home. :)