Comment 1 for bug 1881814

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Ryan Harper (raharper) wrote :

cloud-init detects OpenStack via DMI 'product_name' field. Upstream OpenStack sets this value to 'OpenStack Nova' or 'OpenStack Compute' and the HyperV compute driver should use these values.

From your output, the HyperV compute driver is setting your DMI 'product_name' field to:

/sys/class/dmi/id/product_name:Virtual Machine

which is why cloud-init does not detect that it's running on OpenStack.