diff --git a/server/src/com/cloud/network/NetworkModelImpl.java b/server/src/com/cloud/network/NetworkModelImpl.java
index bd62886674f..7b712ea9781 100755
--- a/server/src/com/cloud/network/NetworkModelImpl.java
+++ b/server/src/com/cloud/network/NetworkModelImpl.java
@@ -1666,20 +1666,17 @@ public class NetworkModelImpl extends ManagerBase implements NetworkModel {
         List<String> ips = _nicDao.listIpAddressInNetwork(network.getId());
         List<String> secondaryIps = _nicSecondaryIpDao.listSecondaryIpAddressInNetwork(network.getId());
         ips.addAll(secondaryIps);
-        Set<Long> allPossibleIps = NetUtils.getAllIpsFromCidr(cidr[0], Integer.parseInt(cidr[1]));
         Set<Long> usedIps = new TreeSet<Long>(); 
-        
+
         for (String ip : ips) {
             if (requestedIp != null && requestedIp.equals(ip)) {
                 s_logger.warn("Requested ip address " + requestedIp + " is already in use in network" + network);
                 return null;
             }
-    
+
             usedIps.add(NetUtils.ip2Long(ip));
         }
-        if (usedIps.size() != 0) {
-            allPossibleIps.removeAll(usedIps);
-        }
+        Set<Long> allPossibleIps = NetUtils.getAllIpsFromCidr(cidr[0], Integer.parseInt(cidr[1]), usedIps);
 
         String gateway = network.getGateway();
         if ((gateway != null) && (allPossibleIps.contains(NetUtils.ip2Long(gateway))))
diff --git a/server/src/com/cloud/network/NetworkServiceImpl.java b/server/src/com/cloud/network/NetworkServiceImpl.java
index 2dcb47d0cd8..ae0e4212efe 100755
--- a/server/src/com/cloud/network/NetworkServiceImpl.java
+++ b/server/src/com/cloud/network/NetworkServiceImpl.java
@@ -2066,9 +2066,8 @@ public class NetworkServiceImpl extends ManagerBase implements  NetworkService {
     protected Set<Long> getAvailableIps(Network network, String requestedIp) {
         String[] cidr = network.getCidr().split("/");
         List<String> ips = _nicDao.listIpAddressInNetwork(network.getId());
-        Set<Long> allPossibleIps = NetUtils.getAllIpsFromCidr(cidr[0], Integer.parseInt(cidr[1]));
         Set<Long> usedIps = new TreeSet<Long>(); 
-        
+
         for (String ip : ips) {
             if (requestedIp != null && requestedIp.equals(ip)) {
                 s_logger.warn("Requested ip address " + requestedIp + " is already in use in network" + network);
@@ -2077,9 +2076,7 @@ public class NetworkServiceImpl extends ManagerBase implements  NetworkService {
 
             usedIps.add(NetUtils.ip2Long(ip));
         }
-        if (usedIps.size() != 0) {
-            allPossibleIps.removeAll(usedIps);
-        }
+        Set<Long> allPossibleIps = NetUtils.getAllIpsFromCidr(cidr[0], Integer.parseInt(cidr[1]), usedIps);
 
         String gateway = network.getGateway();
         if ((gateway != null) && (allPossibleIps.contains(NetUtils.ip2Long(gateway))))
diff --git a/utils/src/com/cloud/utils/net/NetUtils.java b/utils/src/com/cloud/utils/net/NetUtils.java
index 5988dd5f337..9f28d5b36b2 100755
--- a/utils/src/com/cloud/utils/net/NetUtils.java
+++ b/utils/src/com/cloud/utils/net/NetUtils.java
@@ -627,7 +627,7 @@ public class NetUtils {
         return result;
     }
 
-    public static Set<Long> getAllIpsFromCidr(String cidr, long size) {
+    public static Set<Long> getAllIpsFromCidr(String cidr, long size, Set<Long> usedIps) {
         assert (size < 32) : "You do know this is not for ipv6 right?  Keep it smaller than 32 but you have " + size;
         Set<Long> result = new TreeSet<Long>();
         long ip = ip2Long(cidr);
@@ -639,8 +639,12 @@ public class NetUtils {
 
         end++;
         end = (end << (32 - size)) - 2;
-        while (start <= end) {
-            result.add(start);
+        int maxIps = 255; // get 255 ips as maximum
+        while (start <= end && maxIps > 0) {
+            if (!usedIps.contains(start)){
+                result.add(start);
+                maxIps--;
+            }
             start++;
         }