diff --git a/engine/schema/src/com/cloud/upgrade/dao/Upgrade442to443.java b/engine/schema/src/com/cloud/upgrade/dao/Upgrade442to443.java
index a0f185ac514..2855538a2f2 100644
--- a/engine/schema/src/com/cloud/upgrade/dao/Upgrade442to443.java
+++ b/engine/schema/src/com/cloud/upgrade/dao/Upgrade442to443.java
@@ -19,6 +19,9 @@ package com.cloud.upgrade.dao;
 
 import java.io.File;
 import java.sql.Connection;
+import java.sql.PreparedStatement;
+import java.sql.ResultSet;
+import java.sql.SQLException;
 
 import org.apache.log4j.Logger;
 
@@ -55,6 +58,112 @@ public class Upgrade442to443 implements DbUpgrade {
 
     @Override
     public void performDataMigration(Connection conn) {
+        updateMaxRouterSizeConfig(conn);
+        upgradeMemoryOfVirtualRoutervmOffering(conn);
+        upgradeMemoryOfInternalLoadBalancervmOffering(conn);
+    }
+
+    private void updateMaxRouterSizeConfig(Connection conn) {
+        PreparedStatement updatePstmt = null;
+        try {
+            updatePstmt = conn.prepareStatement("UPDATE `cloud`.`configuration` SET value='256' WHERE name='router.ram.size'");
+            updatePstmt.executeUpdate();
+        } catch (SQLException e) {
+            throw new CloudRuntimeException("Unable to upgrade max ram size of router in config.", e);
+        } finally {
+            try {
+                if (updatePstmt != null) {
+                    updatePstmt.close();
+                }
+            } catch (SQLException e) {
+            }
+        }
+        s_logger.debug("Done updating router.ram.size config to 256");
+    }
+
+    private void upgradeMemoryOfInternalLoadBalancervmOffering(Connection conn) {
+        PreparedStatement updatePstmt = null;
+        PreparedStatement selectPstmt = null;
+        ResultSet selectResultSet = null;
+        int newRamSize = 256; //256MB
+        long serviceOfferingId = 0;
+
+        /**
+         * Pick first row in service_offering table which has system vm type as internalloadbalancervm. User added offerings would start from 2nd row onwards.
+         * We should not update/modify any user-defined offering.
+         */
+
+        try {
+            selectPstmt = conn.prepareStatement("SELECT id FROM `cloud`.`service_offering` WHERE vm_type='internalloadbalancervm'");
+            updatePstmt = conn.prepareStatement("UPDATE `cloud`.`service_offering` SET ram_size=? WHERE id=?");
+            selectResultSet = selectPstmt.executeQuery();
+            if(selectResultSet.next()) {
+                serviceOfferingId = selectResultSet.getLong("id");
+            }
+
+            updatePstmt.setInt(1, newRamSize);
+            updatePstmt.setLong(2, serviceOfferingId);
+            updatePstmt.executeUpdate();
+        } catch (SQLException e) {
+            throw new CloudRuntimeException("Unable to upgrade ram_size of service offering for internal loadbalancer vm. ", e);
+        } finally {
+            try {
+                if (selectPstmt != null) {
+                    selectPstmt.close();
+                }
+                if (selectResultSet != null) {
+                    selectResultSet.close();
+                }
+                if (updatePstmt != null) {
+                    updatePstmt.close();
+                }
+            } catch (SQLException e) {
+            }
+        }
+        s_logger.debug("Done upgrading RAM for service offering of internal loadbalancer vm to " + newRamSize);
+    }
+
+
+    private void upgradeMemoryOfVirtualRoutervmOffering(Connection conn) {
+        PreparedStatement updatePstmt = null;
+        PreparedStatement selectPstmt = null;
+        ResultSet selectResultSet = null;
+        int newRamSize = 256; //256MB
+        long serviceOfferingId = 0;
+
+        /**
+         * Pick first row in service_offering table which has system vm type as domainrouter. User added offerings would start from 2nd row onwards.
+         * We should not update/modify any user-defined offering.
+         */
+
+        try {
+            selectPstmt = conn.prepareStatement("SELECT id FROM `cloud`.`service_offering` WHERE vm_type='domainrouter'");
+            updatePstmt = conn.prepareStatement("UPDATE `cloud`.`service_offering` SET ram_size=? WHERE id=?");
+            selectResultSet = selectPstmt.executeQuery();
+            if(selectResultSet.next()) {
+                serviceOfferingId = selectResultSet.getLong("id");
+            }
+
+            updatePstmt.setInt(1, newRamSize);
+            updatePstmt.setLong(2, serviceOfferingId);
+            updatePstmt.executeUpdate();
+        } catch (SQLException e) {
+            throw new CloudRuntimeException("Unable to upgrade ram_size of service offering for domain router. ", e);
+        } finally {
+            try {
+                if (selectPstmt != null) {
+                    selectPstmt.close();
+                }
+                if (selectResultSet != null) {
+                    selectResultSet.close();
+                }
+                if (updatePstmt != null) {
+                    updatePstmt.close();
+                }
+            } catch (SQLException e) {
+            }
+        }
+        s_logger.debug("Done upgrading RAM for service offering of domain router to " + newRamSize);
     }
 
     @Override
diff --git a/plugins/network-elements/internal-loadbalancer/src/org/apache/cloudstack/network/lb/InternalLoadBalancerVMManager.java b/plugins/network-elements/internal-loadbalancer/src/org/apache/cloudstack/network/lb/InternalLoadBalancerVMManager.java
index 803d3a5d7eb..339b0c1c3f3 100644
--- a/plugins/network-elements/internal-loadbalancer/src/org/apache/cloudstack/network/lb/InternalLoadBalancerVMManager.java
+++ b/plugins/network-elements/internal-loadbalancer/src/org/apache/cloudstack/network/lb/InternalLoadBalancerVMManager.java
@@ -32,7 +32,7 @@ import com.cloud.vm.VirtualMachineProfile.Param;
 
 public interface InternalLoadBalancerVMManager {
     //RAM/CPU for the system offering used by Internal LB VMs
-    public static final int DEFAULT_INTERNALLB_VM_RAMSIZE = 128;            // 128 MB
+    public static final int DEFAULT_INTERNALLB_VM_RAMSIZE = 256;            // 256 MB
     public static final int DEFAULT_INTERNALLB_VM_CPU_MHZ = 256;            // 256 MHz
 
     /**
diff --git a/server/src/com/cloud/configuration/Config.java b/server/src/com/cloud/configuration/Config.java
index ab7c21eddb5..bbeb9f3e62a 100755
--- a/server/src/com/cloud/configuration/Config.java
+++ b/server/src/com/cloud/configuration/Config.java
@@ -1379,7 +1379,7 @@ public enum Config {
             "The allowable clock difference in milliseconds between when an SSO login request is made and when it is received.",
             null),
     //NetworkType("Hidden", ManagementServer.class, String.class, "network.type", "vlan", "The type of network that this deployment will use.", "vlan,direct"),
-    RouterRamSize("Hidden", NetworkOrchestrationService.class, Integer.class, "router.ram.size", "128", "Default RAM for router VM (in MB).", null),
+    RouterRamSize("Hidden", NetworkOrchestrationService.class, Integer.class, "router.ram.size", "256", "Default RAM for router VM (in MB).", null),
 
     DefaultPageSize("Advanced", ManagementServer.class, Long.class, "default.page.size", "500", "Default page size for API list* commands", null),
 
diff --git a/server/src/com/cloud/network/router/VirtualNetworkApplianceManager.java b/server/src/com/cloud/network/router/VirtualNetworkApplianceManager.java
index ae418d239c8..5cff679d17e 100644
--- a/server/src/com/cloud/network/router/VirtualNetworkApplianceManager.java
+++ b/server/src/com/cloud/network/router/VirtualNetworkApplianceManager.java
@@ -70,7 +70,7 @@ public interface VirtualNetworkApplianceManager extends Manager, VirtualNetworkA
     static final ConfigKey<Integer> RouterAlertsCheckInterval = new ConfigKey<Integer>(Integer.class, RouterAlertsCheckIntervalCK, "Advanced", "1800",
             "Interval (in seconds) to check for alerts in Virtual Router.", false, ConfigKey.Scope.Global, null);
 
-    public static final int DEFAULT_ROUTER_VM_RAMSIZE = 128;            // 128M
+    public static final int DEFAULT_ROUTER_VM_RAMSIZE = 256;             // 256M
     public static final int DEFAULT_ROUTER_CPU_MHZ = 500;                // 500 MHz
     public static final boolean USE_POD_VLAN = false;