diff --git a/server/src/com/cloud/network/NetworkManagerImpl.java b/server/src/com/cloud/network/NetworkManagerImpl.java
index 39d7f54bd0c..b3fdf32aa7f 100755
--- a/server/src/com/cloud/network/NetworkManagerImpl.java
+++ b/server/src/com/cloud/network/NetworkManagerImpl.java
@@ -2911,10 +2911,11 @@ public class NetworkManagerImpl implements NetworkManager, NetworkService, Manag
                 throw new InvalidParameterValueException("Network with vlan " + vlanId + " already exists in zone " + zoneId);
             }
             } else {
-                //don't allow to create Shared network with Vlan that already exists in the zone for Isolated networks
-                if (_networksDao.countByZoneUriAndGuestType(zoneId, uri, GuestType.Isolated) > 0) {
-                    throw new InvalidParameterValueException("Isolated network with vlan " + vlanId + " already exists " +
-                            "in zone " + zoneId);
+                //don't allow to creating shared network with given Vlan ID, if there already exists a isolated network or
+                //shared network with same Vlan ID in the zone
+                if (_networksDao.countByZoneUriAndGuestType(zoneId, uri, GuestType.Isolated) > 0 ||
+                        _networksDao.countByZoneUriAndGuestType(zoneId, uri, GuestType.Shared) > 0) {
+                    throw new InvalidParameterValueException("There is a isolated/shared network with vlan id: " + vlanId + " already exists " + "in zone " + zoneId);
                 }
         }
         }
@@ -3502,7 +3503,13 @@ public class NetworkManagerImpl implements NetworkManager, NetworkService, Manag
 
             applyProfileToNetwork(network, profile);
 
-            network.setState(Network.State.Allocated);
+            DataCenterVO zone = _dcDao.findById(network.getDataCenterId());
+            if (isSharedNetworkOfferingWithServices(network.getNetworkOfferingId()) && (zone.getNetworkType() == NetworkType.Advanced)) {
+                network.setState(Network.State.Setup);
+            } else {
+                network.setState(Network.State.Allocated);
+            }
+
             network.setRestartRequired(false);
             _networksDao.update(network.getId(), network);
             _networksDao.clearCheckForGc(networkId);