As per the cloud init output log in comment #2, on a precise system, if
you do:

apt-get install cloud-image-utils

apt-decides it needs to remove the cloud-init package (amongst others).

Suggested fix along the lines of:

<smoser> we can fix that with a packaging change to cloud-init in precise.
<smoser> to depend on cloud-image-utils | cloud-utils

** Also affects: cloud-init (Ubuntu)
   Importance: Undecided
       Status: New

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https://bugs.launchpad.net/bugs/1407699

Title:
  Precise services cannot be deployed

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