diff --git a/build/cloud.properties b/build/cloud.properties
index 65f04233dc0..e3cddf7770d 100755
--- a/build/cloud.properties
+++ b/build/cloud.properties
@@ -16,9 +16,9 @@
 # under the License.
 
 # major.minor.patch versioning scheme for CloudStack
-company.major.version=3
+company.major.version=4
 company.minor.version=0
-company.patch.version=3
+company.patch.version=0
 
 svn.revision=2
 
diff --git a/patches/systemvm/debian/buildsystemvm.sh b/patches/systemvm/debian/buildsystemvm.sh
index 18b2e46a1c8..ad18719e58c 100755
--- a/patches/systemvm/debian/buildsystemvm.sh
+++ b/patches/systemvm/debian/buildsystemvm.sh
@@ -29,7 +29,7 @@ HOSTNAME=systemvm
 SIZE=2000
 DEBIAN_MIRROR=ftp.us.debian.org/debian
 MINIMIZE=true
-CLOUDSTACK_RELEASE=3.0
+CLOUDSTACK_RELEASE=4.0
 offset=4096
 baseimage() {
   mkdir -p $LOCATION