You've either done a lot of tech sales yourself or bought into the kool-aid software salespeople hand out. Their bread and butter is overstating per-engineer costs and hardware ownership costs, but it doesn't mean they're right.

In many places in europe you can hire a team of ~10 engineers already fully loaded for $1 million a year, or like 2 seniors and 4 midlevels or any combo like this. This is based off of 1st hand experience hiring for these salaries.