Surely your calculation doesn't / can't include bandwidth charges? And if you have Windows hosts... cloud screws you too.
You're not wrong that it takes a lot more machines than most shops need, and if you can make your scale elastic, 150 machines probably goes a long way! And to your point, developers undervalue their time a lot, and dealing with colocation and sourcing of hardware and backups can be a real drain to save some on CapEx.