I did some testing and it turns out the hostname size seems to be the
problem!  I started a bunch of machines with a hostname of 64 characters
and a bunch of machines with a hostname of 25 characters (with the
script I linked above): all the machines with a hostname of 25 ended up
in the state "Running" and all the others were stuck "Commissioning".
Just to be sure, I had someone else confirm that behavior.

I did some more testing and I can now say that Azure is ok with
hostnames up to 55 characters.  A machine with a hostname of size 56 or
more won't get out of the commissioning state.

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https://bugs.launchpad.net/bugs/1195524

Title:
  race condition / transient failure to provision

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