On your second machine, are you pointing to a shared output location, the smu package output copied from the metadata server SMU run or a blank output directory? You'll see an error like this when the SMU detects no metadata server present in the SMU output location, and the current machine isn't the metadata server.
From the Appendix 1 of the guide Mark linked:
"On SAS multiple-machine deployments, the migration utility must be able to write to (and read from) its output directory. We recommend that the utility output directory be on shared network storage accessible to every SAS machine in the deployment."
And from the smu.properties.template
# The migration package output directory. It will be # created if this is being run against the metadata server # tier. Otherwise, it should already contain the results # from your metadata server tier run and any other upstream # tiers. The results from every tier of your deployment # should be included in the same migration package.
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