Github user remibergsma commented on the pull request:

    https://github.com/apache/cloudstack/pull/1568#issuecomment-222315777
  
    Hi @dsclose The passwd server should not run on the backup router, the same 
counts for dnsmasq. Cloud-init will get the passwd from the server it got the 
ip address from (on the direct ip, not the vip) so it is not needed.
    
    It's a nice idea to have "redundancy" here but it will lead to unexpected 
problems. Imagine a VM starting and getting the passwd from the master, which 
marks it as sent. Then the VM restarts and a failover had taken place. Now it 
gets the same password from the new master (old backup, which has not been 
marked as retrieved). If a user had changed the password manually, it is now 
being reset to the previous one. We had this going in in production for a while 
and it confuses users a lot. Keep it simple, run on the master only.



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