diff --git a/sdk_container/src/third_party/coreos-overlay/app-emulation/google-compute-engine/Manifest b/sdk_container/src/third_party/coreos-overlay/app-emulation/google-compute-engine/Manifest
index 2a4c419f1d..6e72950fc1 100644
--- a/sdk_container/src/third_party/coreos-overlay/app-emulation/google-compute-engine/Manifest
+++ b/sdk_container/src/third_party/coreos-overlay/app-emulation/google-compute-engine/Manifest
@@ -1 +1 @@
-DIST 20161212.tar.gz 103375 SHA256 7156800682586fe156591b3964d3971ee704bd9c4602a12931200e65fafcf081 SHA512 510a41d1fdd44c46aa7e48cdbb2aaaddcb8ff272eaf27b78f822e9e8c2614d1eb66a7384040118c9438e9aa131248eeb7b11b1c6b0d820dd13bf4e98d20a5e28 WHIRLPOOL 74163fe4784bf270c3cdcce73cd393d8d8f2390b9fd88987a4022170101233d67f72caff293829e847579bc9ddfe7ecf42ece2116ac86da16f6e89ef0c92937f
+DIST 20170327.tar.gz 103960 SHA256 d7d2b0039fa30af39dcef6d817281703d5d00772414ba30bbbd18fba588e7672 SHA512 9d72bf4dd817146d92ced6d4fc7c1c6efb436d58aa2ec04f1e81476de403e10bac9c72944e46496191138df90a14268db9c3cc35a311ff4aa6d3e71242676201 WHIRLPOOL 81c2f8718b16c5d27ba93b581d7f965e0c2b3338c8ccece5cbce695c019d2d55515003c45cadc6eda8a339f502d6135f79d64a9d79bd1be15c6b3bebbc216e24
diff --git a/sdk_container/src/third_party/coreos-overlay/app-emulation/google-compute-engine/google-compute-engine-20161212.ebuild b/sdk_container/src/third_party/coreos-overlay/app-emulation/google-compute-engine/google-compute-engine-20170327.ebuild
similarity index 100%
rename from sdk_container/src/third_party/coreos-overlay/app-emulation/google-compute-engine/google-compute-engine-20161212.ebuild
rename to sdk_container/src/third_party/coreos-overlay/app-emulation/google-compute-engine/google-compute-engine-20170327.ebuild
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-oem-gce/coreos-oem-gce-0.0.1-r2.ebuild b/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-oem-gce/coreos-oem-gce-0.0.1-r3.ebuild
similarity index 100%
rename from sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-oem-gce/coreos-oem-gce-0.0.1-r2.ebuild
rename to sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-oem-gce/coreos-oem-gce-0.0.1-r3.ebuild
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-oem-gce/files/manglefs.sh b/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-oem-gce/files/manglefs.sh
index 013b990370..159dc122ab 100644
--- a/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-oem-gce/files/manglefs.sh
+++ b/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-oem-gce/files/manglefs.sh
@@ -27,6 +27,9 @@ do
         /usr/bin/google_${d}_daemon & daemon_pids+=($!)
 done
 
+# Notify the host that everything is running.
+NOTIFY_SOCKET=/run/systemd/notify /usr/bin/systemd-notify --ready
+
 # Pause while the daemons are running, and stop them all when one dies.
 wait -n "${daemon_pids[@]}" || :
 kill "${daemon_pids[@]}" || :
@@ -48,4 +51,5 @@ session optional pam_permit.so
 EOF
 
 # Don't bundle these paths, since they are useless to us.
+mv usr/lib64/systemd/lib*.so* usr/lib64/
 rm -fr boot etc/* usr/lib64/systemd var/db/pkg
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-gce/files/units/oem-gce.service b/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-gce/files/units/oem-gce.service
index 87c2db80e5..b180d08b3a 100644
--- a/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-gce/files/units/oem-gce.service
+++ b/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-gce/files/units/oem-gce.service
@@ -1,10 +1,9 @@
 [Unit]
 Description=GCE Linux Agent
-After=local-fs.target network-online.target network.target
-After=local-fs.target network-online.target network.target
+After=local-fs.target network-online.target
 
 [Service]
-Type=simple
+Type=notify
 Restart=always
 RestartSec=5
 
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-gce/oem-gce-20160906-r2.ebuild b/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-gce/oem-gce-20170327.ebuild
similarity index 100%
rename from sdk_container/src/third_party/coreos-overlay/coreos-base/oem-gce/oem-gce-20160906-r2.ebuild
rename to sdk_container/src/third_party/coreos-overlay/coreos-base/oem-gce/oem-gce-20170327.ebuild