I moved this to initramfs-tools.  I made the following change, ran 
'update-grub' and rebooted. after reboot:
$ dmesg | grep 'sda1.*mou'
[    5.614279] EXT4-fs (sda1): mounted filesystem with ordered data mode. Opts: 
(null)
[    6.452427] EXT4-fs (sda1): re-mounted. Opts: discard


$ diff -u /etc/default/grub.d/50-cloudimg-settings.cfg.orig 
/etc/default/grub.d/50-cloudimg-settings.cfg
--- /etc/default/grub.d/50-cloudimg-settings.cfg.orig   2016-08-22 
18:47:12.878049696 +0000
+++ /etc/default/grub.d/50-cloudimg-settings.cfg        2016-08-22 
18:47:18.306335571 +0000
@@ -2,7 +2,7 @@
 # CLOUD_IMG: This file was created/modified by the Cloud Image build process
 
 # Set the default commandline
-GRUB_CMDLINE_LINUX_DEFAULT="console=tty1 console=ttyS0 earlyprintk=ttyS0 
rootdelay=300"
+GRUB_CMDLINE_LINUX_DEFAULT="console=tty1 console=ttyS0 earlyprintk=ttyS0"
 
 # Set the grub console type
 GRUB_TERMINAL=serial


** Summary changed:

- kernel boot (not userspace) on azure takes > 5 minutes
+ ROOTDELAY= causes unnecessary delay in boot

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https://bugs.launchpad.net/bugs/1615751

Title:
  ROOTDELAY= causes unnecessary delay in boot

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