This bug was fixed in the package cloud-init - 0.7.7~bzr1091-0ubuntu2

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cloud-init (0.7.7~bzr1091-0ubuntu2) vivid; urgency=medium

  * Backport of 15.10 Azure Datasource to fix various issues:
    - Azure Datasource writes user password in plain text (LP: #1458052).
    - Hostname not preserved across Azure reboots (LP: #1375252).
    - Allow provisioning of Ubuntu Snappy w/out WALinuxAgent (LP: #1448885).

 -- Ben Howard <[email protected]>  Mon, 25 May 2015 09:38:58 -0600

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https://bugs.launchpad.net/bugs/1375252

Title:
  [SRU] Hostname change is not preserved across reboot on Azure Ubuntu
  VMs

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