diff --git a/pkg/controller/machine.go b/pkg/controller/machine.go
index 79d147d9f..3a67351b8 100644
--- a/pkg/controller/machine.go
+++ b/pkg/controller/machine.go
@@ -518,9 +518,9 @@ func (c *controller) updateMachineStatus(
 	if err != nil {
 		// Keep retrying until update goes through
 		glog.V(3).Infof("Warning: Updated failed, retrying, error: %q", err)
-		c.updateMachineStatus(machine, lastOperation, currentStatus)
+		return c.updateMachineStatus(machine, lastOperation, currentStatus)
 	}
-	return machine, nil
+	return clone, nil
 }
 
 func (c *controller) updateMachineConditions(machine *v1alpha1.Machine, conditions []v1.NodeCondition) *v1alpha1.Machine {
diff --git a/pkg/driver/driver_azure.go b/pkg/driver/driver_azure.go
index 3a9b3ef25..e6e377cca 100644
--- a/pkg/driver/driver_azure.go
+++ b/pkg/driver/driver_azure.go
@@ -76,6 +76,9 @@ func (d *AzureDriver) Create() (string, string, error) {
 		"",
 	)
 	err = onErrorFail(err, fmt.Sprintf("subnetClient.Get failed for subnet %q", subnet.Name))
+	if err != nil {
+		return "Error", "Error", err
+	}
 
 	enableIPForwarding := true
 	nicParameters := network.Interface{
@@ -94,11 +97,20 @@ func (d *AzureDriver) Create() (string, string, error) {
 		},
 		Tags: &tagList,
 	}
-	cancel := make(chan struct{})
+
+	var cancel chan struct{}
+
 	_, errChan := interfacesClient.CreateOrUpdate(resourceGroup, nicName, nicParameters, cancel)
 	err = onErrorFail(<-errChan, fmt.Sprintf("interfacesClient.CreateOrUpdate for NIC '%s' failed", nicName))
+	if err != nil {
+		return "Error", "Error", err
+	}
+
 	nicParameters, err = interfacesClient.Get(resourceGroup, nicName, "")
 	err = onErrorFail(err, fmt.Sprintf("interfaces.Get for NIC '%s' failed", nicName))
+	if err != nil {
+		return "Error", "Error", err
+	}
 
 	vm := compute.VirtualMachine{
 		Location: &location,
@@ -155,9 +167,13 @@ func (d *AzureDriver) Create() (string, string, error) {
 		},
 		Tags: &tagList,
 	}
+
+	cancel = nil
 	_, errChan = vmClient.CreateOrUpdate(resourceGroup, vmName, vm, cancel)
 	err = onErrorFail(<-errChan, "createVM failed")
-	//glog.Infof("Created machine '%s' successfully\n", vmName)
+	if err != nil {
+		return "Error", "Error", err
+	}
 
 	return d.encodeMachineID(location, vmName), vmName, err
 }