diff --git a/sdk_container/src/third_party/coreos-overlay/sys-block/open-iscsi/files/iscsid-initiatorname.service b/sdk_container/src/third_party/coreos-overlay/sys-block/open-iscsi/files/iscsid-initiatorname.service
new file mode 100644
index 0000000000..41c04ca1d6
--- /dev/null
+++ b/sdk_container/src/third_party/coreos-overlay/sys-block/open-iscsi/files/iscsid-initiatorname.service
@@ -0,0 +1,10 @@
+# Generate an iSCSI initiator name if one doesn't already exist
+[Unit]
+Description=iSCSI initiator name generator
+After=systemd-tmpfiles-setup.service
+ConditionPathExists=!/etc/iscsi/initiatorname.iscsi
+DefaultDependencies=no
+
+[Service]
+Type=oneshot
+ExecStart=/bin/sh -c 'echo InitiatorName=iqn.2016-04.com.coreos.iscsi:$(</etc/machine-id) >/etc/iscsi/initiatorname.iscsi'
diff --git a/sdk_container/src/third_party/coreos-overlay/sys-block/open-iscsi/files/iscsid.service b/sdk_container/src/third_party/coreos-overlay/sys-block/open-iscsi/files/iscsid.service
index 4846340cf0..322d37eee5 100644
--- a/sdk_container/src/third_party/coreos-overlay/sys-block/open-iscsi/files/iscsid.service
+++ b/sdk_container/src/third_party/coreos-overlay/sys-block/open-iscsi/files/iscsid.service
@@ -1,7 +1,8 @@
 [Unit]
 Description=Open-iSCSI
 Documentation=man:iscsid(8) man:iscsiuio(8) man:iscsiadm(8)
-After=network.target NetworkManager-wait-online.service iscsiuio.service tgtd.service targetcli.service
+After=network.target NetworkManager-wait-online.service iscsid-initiatorname.service iscsiuio.service tgtd.service targetcli.service
+Requires=iscsid-initiatorname.service
 
 [Service]
 Type=forking
diff --git a/sdk_container/src/third_party/coreos-overlay/sys-block/open-iscsi/open-iscsi-2.0.873-r1.ebuild b/sdk_container/src/third_party/coreos-overlay/sys-block/open-iscsi/open-iscsi-2.0.873-r2.ebuild
similarity index 96%
rename from sdk_container/src/third_party/coreos-overlay/sys-block/open-iscsi/open-iscsi-2.0.873-r1.ebuild
rename to sdk_container/src/third_party/coreos-overlay/sys-block/open-iscsi/open-iscsi-2.0.873-r2.ebuild
index 7337afa88d..2d388d0998 100644
--- a/sdk_container/src/third_party/coreos-overlay/sys-block/open-iscsi/open-iscsi-2.0.873-r1.ebuild
+++ b/sdk_container/src/third_party/coreos-overlay/sys-block/open-iscsi/open-iscsi-2.0.873-r2.ebuild
@@ -89,8 +89,10 @@ src_install() {
 
 	systemd_dounit "${FILESDIR}"/iscsid.service
 	systemd_dounit "${FILESDIR}"/iscsid.socket
+	systemd_dounit "${FILESDIR}/iscsid-initiatorname.service
 	systemd_dotmpfilesd "${FILESDIR}"/open-iscsi.conf
 
 	fperms 600 /etc/iscsi/iscsid.conf
+	rm "${D}"/etc/iscsi/initiatorname.iscsi
 	mv "${D}"/etc/iscsi "${D}"/usr/share/iscsi
 }