diff --git a/api/src/com/cloud/api/commands/CreatePrivateGatewayCmd.java b/api/src/com/cloud/api/commands/CreatePrivateGatewayCmd.java
index daeb9dd40d3..de97686a9af 100644
--- a/api/src/com/cloud/api/commands/CreatePrivateGatewayCmd.java
+++ b/api/src/com/cloud/api/commands/CreatePrivateGatewayCmd.java
@@ -129,7 +129,7 @@ public class CreatePrivateGatewayCmd extends BaseAsyncCreateCmd {
     @Override
     public void execute() throws InsufficientCapacityException, ConcurrentOperationException, 
     ResourceAllocationException, ResourceUnavailableException {
-        PrivateGateway result = _vpcService.applyVpcPrivateGateway(getEntityId());
+        PrivateGateway result = _vpcService.applyVpcPrivateGateway(getEntityId(), true);
         if (result != null) {
             PrivateGatewayResponse response = _responseGenerator.createPrivateGatewayResponse(result);
             response.setResponseName(getCommandName());
diff --git a/api/src/com/cloud/api/response/AsyncJobResponse.java b/api/src/com/cloud/api/response/AsyncJobResponse.java
index 153d1a8619b..b2176793cb6 100644
--- a/api/src/com/cloud/api/response/AsyncJobResponse.java
+++ b/api/src/com/cloud/api/response/AsyncJobResponse.java
@@ -136,6 +136,10 @@ public class AsyncJobResponse extends BaseResponse {
                 this.jobInstanceId.setTableName("autoscale_vmprofiles");
             } else if (jobInstanceType.equalsIgnoreCase(AsyncJob.Type.AutoScaleVmGroup.toString())) {
                 this.jobInstanceId.setTableName("autoscale_vmgroups");
+            } else if (jobInstanceType.equalsIgnoreCase(AsyncJob.Type.StaticRoute.toString())) {
+                this.jobInstanceId.setTableName("static_routes");
+            } else if (jobInstanceType.equalsIgnoreCase(AsyncJob.Type.PrivateGateway.toString())) {
+                this.jobInstanceId.setTableName("vpc_gateways");
             } else if (!jobInstanceType.equalsIgnoreCase(AsyncJob.Type.None.toString())){
                 // TODO : when we hit here, we need to add instanceType -> UUID entity table mapping
                 assert(false);
diff --git a/api/src/com/cloud/network/vpc/VpcService.java b/api/src/com/cloud/network/vpc/VpcService.java
index e478ec0b3df..707443da106 100644
--- a/api/src/com/cloud/network/vpc/VpcService.java
+++ b/api/src/com/cloud/network/vpc/VpcService.java
@@ -168,11 +168,12 @@ public interface VpcService {
 
     /**
      * @param gatewayId
+     * @param destroyOnFailure TODO
      * @return
      * @throws ResourceUnavailableException 
      * @throws ConcurrentOperationException 
      */
-    public PrivateGateway applyVpcPrivateGateway(Long gatewayId) throws ConcurrentOperationException, ResourceUnavailableException;
+    public PrivateGateway applyVpcPrivateGateway(long gatewayId, boolean destroyOnFailure) throws ConcurrentOperationException, ResourceUnavailableException;
     
     /**
      * @param id
@@ -180,7 +181,7 @@ public interface VpcService {
      * @throws ResourceUnavailableException 
      * @throws ConcurrentOperationException 
      */
-    boolean deleteVpcPrivateGateway(Long gatewayId) throws ConcurrentOperationException, ResourceUnavailableException;
+    boolean deleteVpcPrivateGateway(long gatewayId) throws ConcurrentOperationException, ResourceUnavailableException;
 
     /**
      * @param listPrivateGatewaysCmd
diff --git a/server/src/com/cloud/network/vpc/VpcManagerImpl.java b/server/src/com/cloud/network/vpc/VpcManagerImpl.java
index 8d61fe9076b..7cb7796ef1d 100644
--- a/server/src/com/cloud/network/vpc/VpcManagerImpl.java
+++ b/server/src/com/cloud/network/vpc/VpcManagerImpl.java
@@ -1005,7 +1005,11 @@ public class VpcManagerImpl implements VpcManager, Manager{
 
     }
 
+    @DB
     protected void validateNewVpcGuestNetwork(String cidr, String gateway, Account networkOwner, Vpc vpc, String networkDomain) {
+        
+        Transaction txn = Transaction.currentTxn();
+        txn.start();
         Vpc locked = _vpcDao.acquireInLockTable(vpc.getId());
         if (locked == null) {
             throw new CloudRuntimeException("Unable to acquire lock on " + vpc);
@@ -1070,7 +1074,7 @@ public class VpcManagerImpl implements VpcManager, Manager{
                 throw new InvalidParameterValueException("Invalid gateway specified. It should never be equal to the cidr broadcast ip", null);
             }
 
-
+            txn.commit();
         } finally {
             s_logger.debug("Releasing lock for " + locked);
             _vpcDao.releaseFromLockTable(locked.getId());
@@ -1258,16 +1262,14 @@ public class VpcManagerImpl implements VpcManager, Manager{
 
 
     @Override
-    @DB
-    public PrivateGateway applyVpcPrivateGateway(Long gatewayId) throws ConcurrentOperationException, ResourceUnavailableException {
-        VpcGatewayVO vo = _vpcGatewayDao.acquireInLockTable(gatewayId);
-        if (vo == null) {
-            throw new ConcurrentOperationException("Unable to lock gateway " + gatewayId);
-        }
+    public PrivateGateway applyVpcPrivateGateway(long gatewayId, boolean destroyOnFailure) throws ConcurrentOperationException, ResourceUnavailableException {
+        VpcGatewayVO vo = _vpcGatewayDao.findById(gatewayId);
 
+        boolean success = false;
         try {
             PrivateGateway gateway = getVpcPrivateGateway(gatewayId);
-            if (getVpcElement().createPrivateGateway(gateway)) {
+            success = getVpcElement().createPrivateGateway(gateway);
+            if (success) {
                 s_logger.debug("Private gateway " + gateway + " was applied succesfully on the backend");
                 if (vo.getState() != VpcGateway.State.Ready) {
                     vo.setState(VpcGateway.State.Ready);
@@ -1280,32 +1282,45 @@ public class VpcManagerImpl implements VpcManager, Manager{
                 return null;
             }
         } finally {
-            if (vo != null) {
-                _vpcGatewayDao.releaseFromLockTable(gatewayId);
+            //do cleanup
+            if (!success) {
+                if (destroyOnFailure) {
+                    s_logger.debug("Destroying private gateway " + vo + " that failed to start");
+                    if (deleteVpcPrivateGateway(gatewayId)) {
+                        s_logger.warn("Successfully destroyed vpc " + vo + " that failed to start");
+                    } else {
+                        s_logger.warn("Failed to destroy vpc " + vo + " that failed to start");
+                    }
+                }    
             }
-        }
+        }      
     }
 
     @Override
     @ActionEvent(eventType = EventTypes.EVENT_PRIVATE_GATEWAY_DELETE, eventDescription = "deleting private gateway")
     @DB
-    public boolean deleteVpcPrivateGateway(Long gatewayId) throws ConcurrentOperationException, ResourceUnavailableException {
+    public boolean deleteVpcPrivateGateway(long gatewayId) throws ConcurrentOperationException, ResourceUnavailableException {
+        
+        Transaction txn = Transaction.currentTxn();
+        txn.start();
         VpcGatewayVO gatewayVO = _vpcGatewayDao.acquireInLockTable(gatewayId);
         if (gatewayVO == null || gatewayVO.getType() != VpcGateway.Type.Private) {
             throw new ConcurrentOperationException("Unable to lock gateway " + gatewayId);
         }
 
-        try {
-            _vpcGatewayDao.update(gatewayVO.getId(), gatewayVO);
-            s_logger.debug("Marked gateway " + gatewayVO + " with state " + VpcGateway.State.Deleting);
+        try { 
             //don't allow to remove gateway when there are static routes associated with it
             long routeCount = _staticRouteDao.countRoutesByGateway(gatewayVO.getId());
             if (routeCount > 0) {
                 throw new CloudRuntimeException("Can't delete private gateway " + gatewayVO + " as it has " + routeCount +
                         " static routes applied. Remove the routes first");
             }
-
+            
             gatewayVO.setState(VpcGateway.State.Deleting);
+            _vpcGatewayDao.update(gatewayVO.getId(), gatewayVO);
+            s_logger.debug("Marked gateway " + gatewayVO + " with state " + VpcGateway.State.Deleting);
+            
+            txn.commit();
 
             //1) delete the gateway on the backend
             PrivateGateway gateway = getVpcPrivateGateway(gatewayId);