Looking for examples of costs for deploying web app to Azure vs 3rd party hosting
Solution 1:
The database is your big differentiator here. You have selected a pretty expensive DB SKU, which gives you much more performance and availability than you would get with 3rd part provider. You are also getting a whole DB server which can host multiple DB's (under the same cost) rather than a single DB.
If you want to bring this down, look to use the DTU based purchase model which is a lot cheaper. You can also look to reduce the amount of cores and service tier.