Visual Studio Team Services surely doesn't pay list price for their bandwidth on Azure. It's the same company! Azure is the colo! You seem to assume running a

Visual Studio Team Services surely doesn't pay list price for their bandwidth on Azure. It's the same company! Azure is the colo! You seem to assume running a colo means having some bearded Linux admin on staff that runs all the applications with init.d on bare metal. Not so, kubernetes is a thing. They wisely haven't chained themselves to any of the critical proprietary Azure lockins.