command to create new server

nova boot --flavor m1.tiny --image cirros-0.3.3-x86_64 --nic net-id=0a458e92-ece5-46bd-ac63-9a834b8d659f  --security-group default --key-name demo-key demo-instance1

returns

root@openstack-controller:~/openstack# nova list
+--------------------------------------+----------------+--------+------------+-------------+----------+
| ID                                   | Name           | Status | Task State | Power State | Networks |
+--------------------------------------+----------------+--------+------------+-------------+----------+
| 8fd1e2dd-a716-4a0c-852f-2a3dcb8e6a56 | demo-instance1 | ERROR  | -          | NOSTATE     |          |
+--------------------------------------+----------------+--------+------------+-------------+----------+

Nova-conductor.log has following entries

2015-06-03 08:46:39.423 12206 WARNING nova.scheduler.driver [req-9bbfa303-0cf4-45a5-96be-9d1d0f0e4aa6 None] [instance: 4307d122-4ad9-4d42-adae-474c32e70088] NoValidHost exception with message: 'No valid host was found.'
2015-06-03 08:46:39.425 12206 WARNING nova.scheduler.driver [req-9bbfa303-0cf4-45a5-96be-9d1d0f0e4aa6 None] [instance: 4307d122-4ad9-4d42-adae-474c32e70088] Setting instance to ERROR state.