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Using cloudinit in proxmox is godsend. I can spin up a fresh linux vm and login with my ssh key (and ansible) in less than a minute.

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exactly!

I try to do everything without Ansible: cloud-init is pretty powerful, too, but I am reaching the 64k limit, so sooner then later will go "back" to Ansible.

If you're already familiar with Ansible, what about doing some stuff with cloud-init and then having cloud-init trigger a local ansible run? Then you don't have to worry about running into the limit.

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