On a wild hunch, I built an image with a minimial initrd -- just the bits that are needed to boot -- and the system booted. This means that the problem is with the size of the initramfs.
On a default install the initramfs is ~4.5MB. However, if you install the linux-image-extras-virtual (requirement for Azure due to the need for the UFS module), that bloats the initramfs to ~19MB on the lastest kernel. This means that the issue is likely the platform. Here is the configuration for the initramfs that I used: $ cat /etc/initramfs-tools/modules sd_mod scsi_mod hid hid_hyperv hv_utils hv_storvsc hv_vmbus hv_netvsc crc_itu_t $ cat /etc/initramfs-tools/initramfs.conf MODULES=list BUSYBOX=n COMPCACHE_SIZE="" COMPRESS=xz BOOT=local DEVICE= NFSROOT=auto -- You received this bug notification because you are a member of Ubuntu Bugs, which is subscribed to Ubuntu. https://bugs.launchpad.net/bugs/1055686 Title: Ubuntu 12.10 cloud images do not full provision on Azure To manage notifications about this bug go to: https://bugs.launchpad.net/ubuntu/+bug/1055686/+subscriptions -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs