Apologies for the tardy feedback. Many thanks to all involved,
gratefully and much appreciated. From my perspective, this issue is now
resolved.

I've just tried this on a freshly deployed Trusty VM in Azure -  a
change to the hostname with 'hostnamectl' is now preserved when the VM
is rebooted.

I would like to point out though that, if not editing the /etc/hostname
file directly, the 'hostnamectl' command must be used to set the
hostname; using the 'hostname' command doesn't work (presumably because
the hostname command doesn't change /etc/hostname).

Joe

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https://bugs.launchpad.net/bugs/1375252

Title:
  [SRU] Hostname change is not preserved across reboot on Azure Ubuntu
  VMs

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