This bug was fixed in the package cloud-init - 0.7.8-14-g94fd35e-
0ubuntu1

---------------
cloud-init (0.7.8-14-g94fd35e-0ubuntu1) yakkety; urgency=medium

  * New upstream snapshot.
    - systemd: run cloud-init.service Before dbus.service (LP: #1629797)
    - unittests: fix use of mock 2.0 'assert_called' when running make check
      [Ryan Harper]
    - Improve module documentation and doc cleanup.  [Wesley Wiedenmeier]

 -- Scott Moser <smo...@ubuntu.com>  Tue, 04 Oct 2016 16:46:05 -0400

** Changed in: cloud-init (Ubuntu)
       Status: In Progress => Fix Released

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https://bugs.launchpad.net/bugs/1629797

Title:
  resolve service in nsswitch.conf adds 25 seconds to failed lookups
  before systemd-resolved is up

Status in cloud-init package in Ubuntu:
  Fix Released
Status in dbus package in Ubuntu:
  Triaged

Bug description:
  During boot, cloud-init does DNS resolution checks to if particular
  metadata services are available (in order to determine which cloud it
  is running on).  These checks happen before systemd-resolved is up[0]
  and if they resolve unsuccessfully they take 25 seconds to complete.

  This has substantial impact on boot time in all contexts, because
  cloud-init attempts to resolve three known-invalid addresses ("does-
  not-exist.example.com.", "example.invalid." and a random string) to
  enable it to detect when it's running in an environment where a DNS
  server will always return some sort of redirect.  As such, we're
  talking a minimum impact of 75 seconds in all environments.  This
  increases when cloud-init is configured to check for multiple
  environments.

  This means that yakkety is consistently taking 2-3 minutes to boot on
  EC2 and GCE, compared to the ~30 seconds of the first boot and ~10
  seconds thereafter in xenial.

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