Validated xenial
$ ref=$release-proposed
$ lxc image export $ref .
Output is in a3a030aa025bbef0827529a551839f89aabf6e08446f58cf070cbcaa91dd24e8.tar.gz
$ imagefile=`ls -tr *gz | tail -n 1`
$ mkdir $ref; cd $ref; tar -zxvf ../$imagefile; cd rootfs; tar zcvf /tmp/$ref.tar.gz *;
$ openstack image create --disk-format raw --container-format bare --file /tmp/$ref.tar.gz bbsw/$ref.tar.gz
+------------------+----------------------------------------------------------------------------------------------------------------------------------------------------+
| Field            | Value                                                                                                                                              |
+------------------+----------------------------------------------------------------------------------------------------------------------------------------------------+
| checksum         | e957defc94e8f9dcea4a725fbdb4f0cb                                                                                                                   |
| container_format | bare                                                                                                                                               |
| created_at       | 2017-05-10T20:36:11Z                                                                                                                               |
| disk_format      | raw                                                                                                                                                |
| file             | /v2/images/c87896c7-1a9b-49a6-8ce5-bb7aca11a245/file                                                                                               |
| id               | c87896c7-1a9b-49a6-8ce5-bb7aca11a245                                                                                                               |
| min_disk         | 0                                                                                                                                                  |
| min_ram          | 0                                                                                                                                                  |
| name             | bbsw/xenial-proposed.tar.gz                                                                                                                        |
| owner            | e0eb2d253881491abf92bd522bba9f32                                                                                                                   |
| properties       | direct_url='rbd://9f63f914-1ae6-11e7-922d-00163e397f92/glance/c87896c7-1a9b-49a6-8ce5-bb7aca11a245/snap', locations='[{'url':                      |
|                  | 'rbd://9f63f914-1ae6-11e7-922d-00163e397f92/glance/c87896c7-1a9b-49a6-8ce5-bb7aca11a245/snap', 'metadata': {}}]'                                   |
| protected        | False                                                                                                                                              |
| schema           | /v2/schemas/image                                                                                                                                  |
| size             | 240818892                                                                                                                                          |
| status           | active                                                                                                                                             |
| tags             |                                                                                                                                                    |
| updated_at       | 2017-05-10T20:36:21Z                                                                                                                               |
| virtual_size     | None                                                                                                                                               |
| visibility       | shared                                                                                                                                             |
+------------------+----------------------------------------------------------------------------------------------------------------------------------------------------+

$ openstack server create --image bbsw/$ref.tar.gz --flavor=m1.tiny lxd-$release  --key-name=chad.smith
+-----------------------------+--------------------------------------------------------------------+
| Field                       | Value                                                              |
+-----------------------------+--------------------------------------------------------------------+
| OS-DCF:diskConfig           | MANUAL                                                             |
| OS-EXT-AZ:availability_zone |                                                                    |
| OS-EXT-STS:power_state      | NOSTATE                                                            |
| OS-EXT-STS:task_state       | scheduling                                                         |
| OS-EXT-STS:vm_state         | building                                                           |
| OS-SRV-USG:launched_at      | None                                                               |
| OS-SRV-USG:terminated_at    | None                                                               |
| accessIPv4                  |                                                                    |
| accessIPv6                  |                                                                    |
| addresses                   |                                                                    |
| adminPass                   | 2eQGTvtETZhy                                                       |
| config_drive                |                                                                    |
| created                     | 2017-05-10T20:45:40Z                                               |
| flavor                      | m1.tiny (1)                                                        |
| hostId                      |                                                                    |
| id                          | ec648691-f3ed-4327-9c4a-214cc4e8c5cc                               |
| image                       | bbsw/xenial-proposed.tar.gz (c87896c7-1a9b-49a6-8ce5-bb7aca11a245) |
| key_name                    | chad.smith                                                               |
| name                        | lxd-xenial                                                         |
| progress                    | 0                                                                  |
| project_id                  | e0eb2d253881491abf92bd522bba9f32                                   |
| properties                  |                                                                    |
| security_groups             | name='default'                                                     |
| status                      | BUILD                                                              |
| updated                     | 2017-05-10T20:45:39Z                                               |
| user_id                     | e36bd0f6e5dd41769a80c8e51dc8f894                                   |
| volumes_attached            |                                                                    |
+-----------------------------+--------------------------------------------------------------------+

$ nova floating-ip-create;
...
+--------------------------------------+----------------+-----------+----------+---------+
| Id                                   | IP             | Server Id | Fixed IP | Pool    |
+--------------------------------------+----------------+-----------+----------+---------+
| a6e178c6-176f-4f87-bfa1-78009dec0bfa | 10.245.162.145 | -         | -        | ext_net |
+--------------------------------------+----------------+-----------+----------+---------+
$ nova floating-ip-associate lxd-$release 10.245.162.145

$ ssh ubuntu@10.245.162.145 dpkg -l | grep cloud-init
ii  cloud-init                       0.7.9-113-g513e99e0-0ubuntu1~16.04.1       all          Init scripts for cloud instances


$ ssh ubuntu@10.245.162.145
Welcome to Ubuntu 16.04.2 LTS (GNU/Linux 4.4.0-72-generic x86_64)
...
Last login: Wed May 10 20:48:40 2017 from 10.245.162.107
To run a command as administrator (user "root"), use "sudo <command>".
See "man sudo_root" for details.

ubuntu@lxd-xenial:~$ 
#### Success: No warning anymore about undiscovered openstack datasource on login

ubuntu@lxd-xenial:~$ grep Found /run/cloud-init/ds-identify.log 
Found single datasource: OpenStack