MS azure will do pay per use pricing on any equipment that they can profit from. So it doesn’t really matter what the hardware is. An unlocked Lockhart would be fairly powerful compared to most CPU rentals you would need to pay for.Is there any particular reason why Microsoft/Azure would use such lack-luster hardware than traditional state of the art server wares? I mean, simply provisioning various VMs to Xbox systems spec's would seem better served in cloud environment and more cost effective (long-term) than replacing/reprovisioning your network when dealing with obviously outdated gaming-systems wares when expansion and capacity will be necessary on sustaining network usage and growth.
I can semi-understand if there was thousands of unsold Xbox One hardware laying around that got repurposed for such needs, but using physical Lockhart gaming hardware in a rapidly expanding cloud environment sounds wonky. IMHO, a more traditional server/cloud environment with provisioned VMs to whatever Xbox system spec, would seem (be) more appropriate for future needs.
I’ve done the math and even on the cheapest bare bones systems, if you aren’t doing large workloads, it’s cheaper to run stuff on azure than buying your own cheap gear to do it.