diff --git a/server/src/com/cloud/network/NetworkManagerImpl.java b/server/src/com/cloud/network/NetworkManagerImpl.java
index 75d1d0cfd63..f04a0ed6f91 100755
--- a/server/src/com/cloud/network/NetworkManagerImpl.java
+++ b/server/src/com/cloud/network/NetworkManagerImpl.java
@@ -1297,7 +1297,7 @@ public class NetworkManagerImpl implements NetworkManager, NetworkService, Manag
                     NetworkGuru guru = _networkGurus.get(network.getGuruName());
                     nic.setState(Nic.State.Releasing);
                     _nicDao.update(nic.getId(), nic);
-                    NicProfile profile = new NicProfile(nic, network, null, null, null);
+                    NicProfile profile = new NicProfile(nic, network, nic.getBroadcastUri(), nic.getIsolationUri(), null);
                     if (guru.release(profile, vmProfile, nic.getReservationId())) {
                         applyProfileToNicForRelease(nic, profile);
                         nic.setState(Nic.State.Allocated);
diff --git a/server/src/com/cloud/network/guru/DirectPodBasedNetworkGuru.java b/server/src/com/cloud/network/guru/DirectPodBasedNetworkGuru.java
index 155b31803e8..fe1520dd6e3 100644
--- a/server/src/com/cloud/network/guru/DirectPodBasedNetworkGuru.java
+++ b/server/src/com/cloud/network/guru/DirectPodBasedNetworkGuru.java
@@ -19,6 +19,7 @@
 package com.cloud.network.guru;
 
 import java.net.URI;
+import java.util.List;
 
 import javax.ejb.Local;
 
@@ -29,14 +30,17 @@ import com.cloud.dc.DataCenter;
 import com.cloud.dc.DataCenter.NetworkType;
 import com.cloud.dc.DataCenterVO;
 import com.cloud.dc.Pod;
+import com.cloud.dc.PodVlanMapVO;
 import com.cloud.dc.Vlan;
 import com.cloud.dc.Vlan.VlanType;
 import com.cloud.dc.dao.DataCenterDao;
+import com.cloud.dc.dao.PodVlanMapDao;
 import com.cloud.dc.dao.VlanDao;
 import com.cloud.deploy.DeployDestination;
 import com.cloud.exception.ConcurrentOperationException;
 import com.cloud.exception.InsufficientAddressCapacityException;
 import com.cloud.exception.InsufficientVirtualNetworkCapcityException;
+import com.cloud.network.IPAddressVO;
 import com.cloud.network.Network;
 import com.cloud.network.NetworkManager;
 import com.cloud.network.Networks.AddressFormat;
@@ -67,6 +71,8 @@ public class DirectPodBasedNetworkGuru extends DirectNetworkGuru {
     IPAddressDao _ipAddressDao;
     @Inject
     NetworkOfferingDao _networkOfferingDao;
+    @Inject
+    PodVlanMapDao _podVlanDao;
 
     @Override
     protected boolean canHandle(NetworkOffering offering, DataCenter dc) {
@@ -103,6 +109,7 @@ public class DirectPodBasedNetworkGuru extends DirectNetworkGuru {
         } else {
             nic.setStrategy(ReservationStrategy.Create);
         }
+        
         if (rsStrategy == ReservationStrategy.Create) {
             String mac = _networkMgr.getNextAvailableMacAddressInNetwork(network.getId());
             nic.setMacAddress(mac);
@@ -113,9 +120,31 @@ public class DirectPodBasedNetworkGuru extends DirectNetworkGuru {
     @Override
     public void reserve(NicProfile nic, Network network, VirtualMachineProfile<? extends VirtualMachine> vm, DeployDestination dest, ReservationContext context)
             throws InsufficientVirtualNetworkCapcityException, InsufficientAddressCapacityException, ConcurrentOperationException {
-        if (nic.getIp4Address() == null) {
+        
+        String oldIp = nic.getIp4Address();
+        boolean getNewIp = false;
+        
+        if (oldIp == null) {
+            getNewIp = true;
+        } else {
+            // we need to get a new ip address if we try to deploy a vm in a different pod
+            IPAddressVO ipVO = _ipAddressDao.findByIpAndSourceNetworkId(network.getId(), oldIp);
+            if (ipVO != null) {
+                List<PodVlanMapVO> mapVO = _podVlanDao.listPodVlanMapsByVlan(ipVO.getVlanId());
+                if (mapVO.get(0).getPodId() != dest.getPod().getId()) {
+                    //release the old ip here
+                    _networkMgr.markIpAsUnavailable(ipVO.getId());
+                    _ipAddressDao.unassignIpAddress(ipVO.getId());
+                    
+                    nic.setIp4Address(null);
+                    getNewIp = true;
+                }
+            }
+        }
+        
+        if (getNewIp) {
+            //we don't set reservationStrategy to Create because we need this method to be called again for the case when vm fails to deploy in Pod1, and we try to redeploy it in Pod2 
             getIp(nic, dest.getPod(), vm, network);
-            nic.setStrategy(ReservationStrategy.Create);
         }
         
         DataCenter dc = _dcDao.findById(network.getDataCenterId());
@@ -143,5 +172,5 @@ public class DirectPodBasedNetworkGuru extends DirectNetworkGuru {
         nic.setDns1(dc.getDns1());
         nic.setDns2(dc.getDns2());
     }
-
+    
 }
diff --git a/setup/db/db/schema-228to229.sql b/setup/db/db/schema-228to229.sql
index d2033063be6..92226ad7028 100755
--- a/setup/db/db/schema-228to229.sql
+++ b/setup/db/db/schema-228to229.sql
@@ -54,3 +54,4 @@ INSERT IGNORE INTO configuration VALUES ('Network', 'DEFAULT', 'management-serve
 INSERT IGNORE INTO configuration VALUES ('Network', 'DEFAULT', 'management-server', 'network.loadbalancer.haproxy.stats.auth','admin1:AdMiN123','Load Balancer(haproxy) authetication string in the format username:password');
 INSERT IGNORE INTO configuration VALUES ('Network', 'DEFAULT', 'management-server', 'network.loadbalancer.haproxy.stats.port','8081','Load Balancer(haproxy) stats port number.');
 
+UPDATE `cloud`.`nics` SET strategy='Start' where reserver_name='DirectPodBasedNetworkGuru';