> The setup is quite simple ... We are using Azure so would probably use cloud features ... [a] load balancer and a couple of VMs for example, with auto scaling set up.

Load balancing and auto-scaling are some of the more basic and popular services that kubernetes provides. If your platform already provides them for you, it makes the case for kubernetes weaker. That said, kubernetes can be run on multiple cloud providers, and provides far more features.

Once the complexity of the cluster grows, and vendor lock-in issues increase, kubernetes makes more and more sense.