------- Comment From [email protected] 2017-01-17 06:46 EDT-------
KVM for IBM z uses the following sysctl defaults:

fs.inotify.max_user_watches = 32768
fs.aio-max-nr = 4194304

Can you try with these values?

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https://bugs.launchpad.net/bugs/1644785

Title:
  Ubuntu Openstack Mitaka can only deploy up to 52 instances

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