diff --git a/api/src/com/cloud/api/commands/UpdateNetworkOfferingCmd.java b/api/src/com/cloud/api/commands/UpdateNetworkOfferingCmd.java
index 67909676340..23c9425803b 100644
--- a/api/src/com/cloud/api/commands/UpdateNetworkOfferingCmd.java
+++ b/api/src/com/cloud/api/commands/UpdateNetworkOfferingCmd.java
@@ -48,7 +48,7 @@ public class UpdateNetworkOfferingCmd extends BaseCmd {
     @Parameter(name=ApiConstants.DISPLAY_TEXT, type=CommandType.STRING, description="the display text of the network offering")
     private String displayText;
     
-    @Parameter(name=ApiConstants.AVAILABILITY, type=CommandType.STRING, description="the availability of network offering. Default value is Required")
+    @Parameter(name=ApiConstants.AVAILABILITY, type=CommandType.STRING, description="the availability of network offering. Default value is Required for Guest Virtual network offering; Optional for Guest Direct network offering")
     private String availability; 
 
     /////////////////////////////////////////////////////
diff --git a/server/src/com/cloud/offerings/NetworkOfferingVO.java b/server/src/com/cloud/offerings/NetworkOfferingVO.java
index 2a329652946..8c84ce9592d 100644
--- a/server/src/com/cloud/offerings/NetworkOfferingVO.java
+++ b/server/src/com/cloud/offerings/NetworkOfferingVO.java
@@ -332,7 +332,7 @@ public class NetworkOfferingVO implements NetworkOffering {
      * @param trafficType
      */
     public NetworkOfferingVO(String name, TrafficType trafficType) {
-        this(name, "System Offering for " + name, trafficType, true, false, null, null, null, false, Availability.Required, false, false, false, false, false, false, false, null);
+        this(name, "System Offering for " + name, trafficType, true, false, 0, 0, null, true, Availability.Required, false, false, false, false, false, false, false, null);
     }
     
     @Override
diff --git a/setup/db/schema-222to224.sql b/setup/db/schema-222to224.sql
index 3bd7b9cd9fa..b8a309af666 100644
--- a/setup/db/schema-222to224.sql
+++ b/setup/db/schema-222to224.sql
@@ -47,3 +47,7 @@ ALTER TABLE `cloud`.`network_offerings` MODIFY `guest_type` char(32);
 INSERT INTO `cloud`.`guest_os` (id, category_id, display_name) VALUES (138, 7, 'None');
 
 
+UPDATE `cloud`.`network_offerings` SET `nw_rate`=0, `mc_rate`=0 WHERE system_only=1 and guest_type IS NULL;
+UPDATE `cloud`.`network_offerings` SET `default`=1 WHERE system_only=1;
+
+