diff --git a/tools/appliance/definitions/systemvmtemplate/configure_networking.sh b/tools/appliance/definitions/systemvmtemplate/configure_networking.sh
index eca0d5c1c45..4d1fcced77c 100644
--- a/tools/appliance/definitions/systemvmtemplate/configure_networking.sh
+++ b/tools/appliance/definitions/systemvmtemplate/configure_networking.sh
@@ -1,2 +1,25 @@
+HOSTNAME=systemvm
+
 echo "Adding a 2 sec delay to the interface up, to make the dhclient happy"
 echo "pre-up sleep 2" >> /etc/network/interfaces
+
+fix_nameserver() {
+  # Replace /etc/resolv.conf also
+  cat > /etc/resolv.conf << EOF
+nameserver 8.8.8.8
+nameserver 8.8.4.4
+EOF
+}
+
+fix_hostname() {
+  # Fix hostname in openssh-server generated keys
+  sed -i "s/root@\(.*\)$/root@$HOSTNAME/g" /etc/ssh/ssh_host_*.pub
+  # Fix hostname to override one provided by dhcp during vm build
+  echo "$HOSTNAME" > /etc/hostname
+  hostname $HOSTNAME
+  # Delete entry in /etc/hosts derived from dhcp
+  sed -i '/127.0.1.1/d' /etc/hosts
+}
+
+fix_hostname
+fix_nameserver
diff --git a/tools/appliance/definitions/systemvmtemplate/definition.rb b/tools/appliance/definitions/systemvmtemplate/definition.rb
index 48c656cdf7b..6daa7ff709b 100644
--- a/tools/appliance/definitions/systemvmtemplate/definition.rb
+++ b/tools/appliance/definitions/systemvmtemplate/definition.rb
@@ -62,11 +62,11 @@ config = {
         'configure_grub.sh',
         'configure_locale.sh',
         'configure_login.sh',
+        'configure_networking.sh',
         'postinstall.sh',
         'configure_acpid.sh',
         'configure_conntrack.sh',
         'cleanup.sh',
-        'configure_networking.sh',
         'zerodisk.sh'
     ],
     :postinstall_timeout => '10000'
diff --git a/tools/appliance/definitions/systemvmtemplate/postinstall.sh b/tools/appliance/definitions/systemvmtemplate/postinstall.sh
index 55d658bf79c..7ce032c111e 100644
--- a/tools/appliance/definitions/systemvmtemplate/postinstall.sh
+++ b/tools/appliance/definitions/systemvmtemplate/postinstall.sh
@@ -108,32 +108,12 @@ install_packages() {
   apt-get --no-install-recommends -q -y --force-yes install radvd
 }
 
-fix_nameserver() {
-  # Replace /etc/resolv.conf also
-  cat > /etc/resolv.conf << EOF
-nameserver 8.8.8.8
-nameserver 8.8.4.4
-EOF
-}
-
-fix_hostname() {
-  # Fix hostname in openssh-server generated keys
-  sed -i "s/root@\(.*\)$/root@$HOSTNAME/g" /etc/ssh/ssh_host_*.pub
-  # Fix hostname to override one provided by dhcp during vm build
-  echo "$HOSTNAME" > /etc/hostname
-  hostname $HOSTNAME
-  # Delete entry in /etc/hosts derived from dhcp
-  sed -i '/127.0.1.1/d' /etc/hosts
-}
-
 fix_vhdutil() {
   wget --no-check-certificate http://download.cloud.com.s3.amazonaws.com/tools/vhd-util -O /bin/vhd-util
   chmod a+x /bin/vhd-util
 }
 
 do_fixes() {
-  fix_nameserver
-  fix_hostname
   fix_vhdutil
 }