diff --git a/systemvm/debian/etc/systemd/system/cloud-early-config.service b/systemvm/debian/etc/systemd/system/cloud-early-config.service
index 2af52767cc3..50f0f2b0067 100644
--- a/systemvm/debian/etc/systemd/system/cloud-early-config.service
+++ b/systemvm/debian/etc/systemd/system/cloud-early-config.service
@@ -14,5 +14,5 @@ WantedBy=multi-user.target
 [Service]
 Type=oneshot
 ExecStart=/opt/cloud/bin/setup/cloud-early-config
-RemainAfterExit=true
+RemainAfterExit=no
 TimeoutStartSec=5min
diff --git a/systemvm/debian/etc/systemd/system/cloud-postinit.service b/systemvm/debian/etc/systemd/system/cloud-postinit.service
index cb20aaf7c06..16717578bee 100644
--- a/systemvm/debian/etc/systemd/system/cloud-postinit.service
+++ b/systemvm/debian/etc/systemd/system/cloud-postinit.service
@@ -9,5 +9,5 @@ WantedBy=multi-user.target
 [Service]
 Type=oneshot
 ExecStart=/opt/cloud/bin/setup/postinit.sh
-RemainAfterExit=true
+RemainAfterExit=no
 TimeoutStartSec=10min
diff --git a/systemvm/debian/etc/systemd/system/cloud.service b/systemvm/debian/etc/systemd/system/cloud.service
index 22439239caa..e3824bf53c2 100644
--- a/systemvm/debian/etc/systemd/system/cloud.service
+++ b/systemvm/debian/etc/systemd/system/cloud.service
@@ -1,6 +1,6 @@
 [Unit]
 Description=CloudStack Agent service
-After=cloud-early-config.service network.target local-fs.target
+After=cloud-early-config.service network.target cloud-postinit.service local-fs.target
 
 [Install]
 WantedBy=multi-user.target
diff --git a/systemvm/debian/etc/systemd/system/open-vm-tools.service b/systemvm/debian/etc/systemd/system/open-vm-tools.service
deleted file mode 100644
index b8afec52f65..00000000000
--- a/systemvm/debian/etc/systemd/system/open-vm-tools.service
+++ /dev/null
@@ -1,16 +0,0 @@
-[Unit]
-Description=Service for virtual machines hosted on VMware
-Documentation=http://open-vm-tools.sourceforge.net/about.php
-ConditionVirtualization=vmware
-DefaultDependencies=no
-Before=cloud-init-local.service
-After=local-fs.target
-
-[Service]
-ExecStart=/usr/bin/vmtoolsd
-TimeoutStopSec=5
-Restart=always
-RestartSec=15
-
-[Install]
-WantedBy=multi-user.target
diff --git a/systemvm/debian/opt/cloud/bin/setup/postinit.sh b/systemvm/debian/opt/cloud/bin/setup/postinit.sh
index 967e90f1411..5eb8f5568aa 100755
--- a/systemvm/debian/opt/cloud/bin/setup/postinit.sh
+++ b/systemvm/debian/opt/cloud/bin/setup/postinit.sh
@@ -31,10 +31,38 @@ fi
 sysctl -p
 
 # HYPERVISOR exported by cloud-early-config
-# stop ntp conflicting with vmtools
-if [ "$HYPERVISOR" == "vmware" ]; then
-  systemctl stop ntpd
-fi
+
+case $HYPERVISOR in
+     xen-pv|xen-domU)
+		systemctl stop ntpd
+		systemctl start xe-daemon xenstored
+          ;;
+     xen-hvm)
+		  systemctl stop ntpd
+		systemctl start xe-daemon xenstored
+
+          ;;
+     kvm)
+          systemctl start qemu-guest-agent
+		VPORT=$(find /dev/virtio-ports -type l -name '*.vport' 2>/dev/null|head -1)
+          ;;
+     vmware)
+		systemctl stop ntpd
+          systemctl start vmtoolsd
+
+          ;;
+     virtualpc|hyperv)
+          # Hyper-V is recognized as virtualpc hypervisor type. Boot args are passed using KVP Daemon
+		systemctl start hyperv-daemons
+          ;;
+     virtualbox)
+          # Virtualbox is used to test the virtual router
+
+          ;;
+  esac
+
+
+
 
 # Restart journald for setting changes to apply
 systemctl restart systemd-journald
diff --git a/tools/appliance/systemvmtemplate/scripts/configure_systemvm_services.sh b/tools/appliance/systemvmtemplate/scripts/configure_systemvm_services.sh
index a12a2233743..dba9234fec8 100644
--- a/tools/appliance/systemvmtemplate/scripts/configure_systemvm_services.sh
+++ b/tools/appliance/systemvmtemplate/scripts/configure_systemvm_services.sh
@@ -110,6 +110,9 @@ function configure_services() {
   systemctl disable xl2tpd
   systemctl disable vgauth
 
+  # Disable guest services which will selectively be started based on hypervisor
+  systemctl disable vmtoolsd xe-daemon qemu-guest-agent hyperv-daemons xenstored
+
   configure_apache2
   configure_strongswan
   configure_issue