Tell me you're joking. Because I honestly can't wrap my head around that number.
Edit: And I thought Windows Server licensing scheme was nuts.
I forgot SQL Server is sold in 2-packs. So it's half of what I said.
Why nuts? Not for what you're getting. Some databases are even more expensive.
It's a fundamental tool for most companies - an investment. It either makes sense or not. Nothing "nuts" about it.
Construction companies pay similar sums for excavators or other essential machines. Would you call them nuts?
You have to think about how this stacks up.
Lets say you want to start a new on-remise system in a company (some ERP or analytics). You need hardware, database, backup, the actual software you want (e.g. ERP), some consulting help and training. And that's just for production. You also need a DEV/ACC environment which will be much cheaper but still...
So you may end up with something like:
server: $200k
virtualization software: $10k
database: $500k
target software (e.g. ERP): $500k
consulting: $100k
training: $100k
DEV/ACC: $100k (cheap server, cheap/free non-prod licensing)
This sums up to $1.5M for a project (and that's without workforce cost). That's the figure you're going to show to your management board.
It's important to understand this - especially when you read a discussion on a gaming forum and people tell you that everyone will suddenly jump to AMD because EPYC is $3000 cheaper than a Xeon.