diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-rackspace/files/init.yml b/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-rackspace/files/cloud-config.yml
similarity index 57%
rename from sdk_container/src/third_party/coreos-overlay/coreos-base/oem-rackspace/files/init.yml
rename to sdk_container/src/third_party/coreos-overlay/coreos-base/oem-rackspace/files/cloud-config.yml
index 8e066a2911..b92995778a 100644
--- a/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-rackspace/files/init.yml
+++ b/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-rackspace/files/cloud-config.yml
@@ -17,3 +17,23 @@ coreos:
           ExecStopPost=/bin/umount -f /usr/share/oem/nova-agent/dev
           ExecStopPost=/bin/umount -f /usr/share/oem/nova-agent/proc/xen
           ExecStopPost=/bin/umount -f /usr/share/oem/nova-agent/proc
+      - name: nova-agent-watcher.service
+        content: |
+          [Unit]
+          After=dbus.service
+
+          [Service]
+          ExecStart=/usr/share/oem/usr/bin/nova-agent-watcher -watch-dir=/usr/share/oem/nova-agent -scripts-dir=/usr/share/oem/usr/bin/
+      - name: media-configdrive.mount
+        content: |
+          [Mount]
+          What=/dev/disk/by-label/config-2
+          Where=/media/configdrive
+      - name: cloudinit-configdrive.service
+        content: |
+          [Unit]
+          RequiresMountsFor=/media/configdrive
+
+          [Service]
+          Type=oneshot
+          ExecStart=/usr/bin/coreos-cloudinit --from-file=/media/configdrive/openstack/latest/user_data
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-rackspace/files/run b/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-rackspace/files/run
deleted file mode 100755
index 60eb112d4e..0000000000
--- a/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-rackspace/files/run
+++ /dev/null
@@ -1,4 +0,0 @@
-#!/bin/bash
-
-/usr/bin/systemd-run --unit=cloudinit-init /usr/bin/coreos-cloudinit --from-file=/usr/share/oem/init.yml
-/usr/bin/systemd-run --unit=nova-agent-watcher /usr/share/oem/usr/bin/nova-agent-watcher -watch-dir=/usr/share/oem/nova-agent -scripts-dir=/usr/share/oem/usr/bin/
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-rackspace/oem-rackspace-0.0.1-r1.ebuild b/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-rackspace/oem-rackspace-0.0.1-r2.ebuild
similarity index 100%
rename from sdk_container/src/third_party/coreos-overlay/coreos-base/oem-rackspace/oem-rackspace-0.0.1-r1.ebuild
rename to sdk_container/src/third_party/coreos-overlay/coreos-base/oem-rackspace/oem-rackspace-0.0.1-r2.ebuild
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-rackspace/oem-rackspace-0.0.1.ebuild b/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-rackspace/oem-rackspace-0.0.1.ebuild
index a13808269a..fc69d724b6 100644
--- a/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-rackspace/oem-rackspace-0.0.1.ebuild
+++ b/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-rackspace/oem-rackspace-0.0.1.ebuild
@@ -26,8 +26,6 @@ RDEPEND="
 
 src_install() {
 	rsync --exclude=".git" -aq ${S}/ ${D}/nova-agent/
-	exeinto "/"
-	doexe ${FILESDIR}/run
 	insinto "/"
-	doins ${FILESDIR}/init.yml
+	doins ${FILESDIR}/cloud-config.yml
 }