FYI not everyone wants to run this in "the cloud". I have a LOT of bare metal and want to deploy something like this on bare metal. Please don't forget us users who buy our own hardware!

Same here. I'm waiting for clean and nie solution to utilize all spare hardware, I have in my company. It would be great to have simple PaaS running on one machine, it would be awesome to utilize them all. If someone could give me step-by-step instructions / solution how to do this, I would really pay for that (or support open source, if that's the case).

The knife solo page should help with this:

http://www.octohost.io/knife-solo.html

I don't think so. Why would I need vagrant on the server ? ~/octohost-cookbook$ sudo rake knife_solo user=root ip=172.16.90.151 rake aborted! Kitchen::UserError: Vagrant 1.1.0 or higher is not installed. Please download a package from http://downloads.vagrantup.com/.

Checkout CoreOS + Deis

You don't need a cloud. You can deploy it on whatever hardware you have as long as you have an SSH connection:

http://www.octohost.io/knife-solo.html