diff --git a/cmd/cloudinit/cloudinit.go b/cmd/cloudinit/cloudinit.go
index c5b4b764..ea418e24 100644
--- a/cmd/cloudinit/cloudinit.go
+++ b/cmd/cloudinit/cloudinit.go
@@ -1,4 +1,5 @@
 // Copyright 2015 CoreOS, Inc.
+// Copyright 2015 Rancher Labs, Inc.
 //
 // Licensed under the Apache License, Version 2.0 (the "License");
 // you may not use this file except in compliance with the License.
@@ -19,193 +20,100 @@ import (
 	"fmt"
 	"io/ioutil"
 	"os"
+	"strings"
 	"sync"
 	"time"
 
+	log "github.com/Sirupsen/logrus"
 	"github.com/coreos/coreos-cloudinit/config"
 	"github.com/coreos/coreos-cloudinit/config/validate"
 	"github.com/coreos/coreos-cloudinit/datasource"
 	"github.com/coreos/coreos-cloudinit/datasource/configdrive"
 	"github.com/coreos/coreos-cloudinit/datasource/file"
-	"github.com/coreos/coreos-cloudinit/datasource/metadata/cloudsigma"
-	"github.com/coreos/coreos-cloudinit/datasource/metadata/digitalocean"
 	"github.com/coreos/coreos-cloudinit/datasource/metadata/ec2"
 	"github.com/coreos/coreos-cloudinit/datasource/proc_cmdline"
 	"github.com/coreos/coreos-cloudinit/datasource/url"
-	"github.com/coreos/coreos-cloudinit/datasource/waagent"
 	"github.com/coreos/coreos-cloudinit/initialize"
 	"github.com/coreos/coreos-cloudinit/network"
 	"github.com/coreos/coreos-cloudinit/pkg"
 	"github.com/coreos/coreos-cloudinit/system"
+	rancherConfig "github.com/rancherio/os/config"
 	"gopkg.in/yaml.v2"
 )
 
 const (
-	version               = "1.3.2+git"
 	datasourceInterval    = 100 * time.Millisecond
 	datasourceMaxInterval = 30 * time.Second
 	datasourceTimeout     = 5 * time.Minute
 )
 
 var (
-	flags = struct {
-		printVersion  bool
-		ignoreFailure bool
-		sources       struct {
-			file                        string
-			configDrive                 string
-			waagent                     string
-			metadataService             bool
-			ec2MetadataService          string
-			cloudSigmaMetadataService   bool
-			digitalOceanMetadataService string
-			url                         string
-			procCmdLine                 bool
-		}
-		convertNetconf string
-		workspace      string
-		sshKeyName     string
-		oem            string
-		validate       bool
-		preInit        bool
-		outDir         string
-	}{}
+	outputDir  string
+	outputFile string
+	save       bool
+	sshKeyName string
 )
 
 func init() {
-	flag.BoolVar(&flags.printVersion, "version", false, "Print the version and exit")
-	flag.BoolVar(&flags.ignoreFailure, "ignore-failure", false, "Exits with 0 status in the event of malformed input from user-data")
-	flag.StringVar(&flags.sources.file, "from-file", "", "Read user-data from provided file")
-	flag.StringVar(&flags.sources.configDrive, "from-configdrive", "", "Read data from provided cloud-drive directory")
-	flag.StringVar(&flags.sources.waagent, "from-waagent", "", "Read data from provided waagent directory")
-	flag.BoolVar(&flags.sources.metadataService, "from-metadata-service", false, "[DEPRECATED - Use -from-ec2-metadata] Download data from metadata service")
-	flag.StringVar(&flags.sources.ec2MetadataService, "from-ec2-metadata", "", "Download EC2 data from the provided url")
-	flag.BoolVar(&flags.sources.cloudSigmaMetadataService, "from-cloudsigma-metadata", false, "Download data from CloudSigma server context")
-	flag.StringVar(&flags.sources.digitalOceanMetadataService, "from-digitalocean-metadata", "", "Download DigitalOcean data from the provided url")
-	flag.StringVar(&flags.sources.url, "from-url", "", "Download user-data from provided url")
-	flag.BoolVar(&flags.sources.procCmdLine, "from-proc-cmdline", false, fmt.Sprintf("Parse %s for '%s=<url>', using the cloud-config served by an HTTP GET to <url>", proc_cmdline.ProcCmdlineLocation, proc_cmdline.ProcCmdlineCloudConfigFlag))
-	flag.StringVar(&flags.oem, "oem", "", "Use the settings specific to the provided OEM")
-	flag.StringVar(&flags.convertNetconf, "convert-netconf", "", "Read the network config provided in cloud-drive and translate it from the specified format into networkd unit files")
-	flag.StringVar(&flags.workspace, "workspace", "/var/lib/coreos-cloudinit", "Base directory coreos-cloudinit should use to store data")
-	flag.StringVar(&flags.sshKeyName, "ssh-key-name", initialize.DefaultSSHKeyName, "Add SSH keys to the system with the given name")
-	flag.BoolVar(&flags.validate, "validate", false, "[EXPERIMENTAL] Validate the user-data but do not apply it to the system")
-	flag.BoolVar(&flags.preInit, "preinit", true, "Does not initialize the cloud config. Just reads, validates and saves the merged file to disk")
-	flag.StringVar(&flags.outDir, "outdir", "/var/lib/rancher/", "output directory to store cloud-config")
+	flag.StringVar(&outputDir, "dir", "/var/lib/rancher/conf", "working directory")
+	flag.StringVar(&outputFile, "file", "/var/lib/rancher/conf/cloud-config.yml", "cloud config file name")
+	flag.StringVar(&sshKeyName, "ssh-key-name", "rancheros-cloud-config", "SSH key name")
+	flag.BoolVar(&save, "save", false, "save cloud config and exit")
 }
 
-type oemConfig map[string]string
-
-var (
-	oemConfigs = map[string]oemConfig{
-		"digitalocean": oemConfig{
-			"from-digitalocean-metadata": "http://169.254.169.254/",
-			"convert-netconf":            "digitalocean",
-		},
-		"ec2-compat": oemConfig{
-			"from-ec2-metadata": "http://169.254.169.254/",
-			"from-configdrive":  "/media/configdrive",
-		},
-		"rackspace-onmetal": oemConfig{
-			"from-configdrive": "/media/configdrive",
-			"convert-netconf":  "debian",
-		},
-		"azure": oemConfig{
-			"from-waagent": "/var/lib/waagent",
-		},
-		"cloudsigma": oemConfig{
-			"from-cloudsigma-metadata": "true",
-		},
-	}
-)
-
 func Main() {
-	failure := false
-
 	flag.Parse()
 
-	if !flags.preInit && flags.sources.file == "" {
-		fmt.Println("specify either --preinit or provide a filename to load config from")
-		os.Exit(2)
+	cfg, err := rancherConfig.LoadConfig()
+	if err != nil {
+		log.Fatalf("Failed to read rancher config %v", err)
 	}
 
-	if c, ok := oemConfigs[flags.oem]; ok {
-		for k, v := range c {
-			flag.Set(k, v)
-		}
-	} else if flags.oem != "" {
-		oems := make([]string, 0, len(oemConfigs))
-		for k := range oemConfigs {
-			oems = append(oems, k)
-		}
-		fmt.Printf("Invalid option to --oem: %q. Supported options: %q\n", flags.oem, oems)
-		os.Exit(2)
-	}
-
-	if flags.printVersion == true {
-		fmt.Printf("coreos-cloudinit version %s\n", version)
-		os.Exit(0)
-	}
-
-	switch flags.convertNetconf {
-	case "":
-	case "debian":
-	case "digitalocean":
-	default:
-		fmt.Printf("Invalid option to -convert-netconf: '%s'. Supported options: 'debian, digitalocean'\n", flags.convertNetconf)
-		os.Exit(2)
-	}
-
-	dss := getDatasources()
+	dss := getDatasources(cfg)
 	if len(dss) == 0 {
-		fmt.Println("Provide at least one of --from-file, --from-configdrive, --from-ec2-metadata, --from-cloudsigma-metadata, --from-url or --from-proc-cmdline")
-		os.Exit(2)
+		os.Exit(0)
 	}
 
 	ds := selectDatasource(dss)
 	if ds == nil {
-		fmt.Println("No datasources available in time")
-		os.Exit(1)
+		log.Info("No datasources found")
+		os.Exit(0)
 	}
 
-	fmt.Printf("Fetching user-data from datasource of type %q\n", ds.Type())
+	log.Info("Fetching user-data from datasource %s", ds.Type())
 	userdataBytes, err := ds.FetchUserdata()
 	if err != nil {
-		fmt.Printf("Failed fetching user-data from datasource: %v\nContinuing...\n", err)
-		failure = true
+		log.Fatalf("Failed fetching user-data from datasource: %v", err)
 	}
 
 	if report, err := validate.Validate(userdataBytes); err == nil {
-		ret := 0
+		fail := false
 		for _, e := range report.Entries() {
-			fmt.Println(e)
-			ret = 1
+			log.Error(e)
+			fail = true
 		}
-		if flags.validate {
-			os.Exit(ret)
-		}
-	} else {
-		fmt.Printf("Failed while validating user_data (%q)\n", err)
-		if flags.validate {
+		if fail {
 			os.Exit(1)
 		}
+	} else {
+		log.Fatalf("Failed while validating user_data (%v)", err)
 	}
 
-	fmt.Printf("Fetching meta-data from datasource of type %q\n", ds.Type())
+	fmt.Printf("Fetching meta-data from datasource of type %v", ds.Type())
 	metadata, err := ds.FetchMetadata()
 	if err != nil {
-		fmt.Printf("Failed fetching meta-data from datasource: %v\n", err)
+		fmt.Printf("Failed fetching meta-data from datasource: %v", err)
 		os.Exit(1)
 	}
 
 	// Apply environment to user-data
-	env := initialize.NewEnvironment("/", ds.ConfigRoot(), flags.workspace, flags.sshKeyName, metadata)
+	env := initialize.NewEnvironment("/", ds.ConfigRoot(), outputDir, sshKeyName, metadata)
 	userdata := env.Apply(string(userdataBytes))
 
 	var ccu *config.CloudConfig
 	var script *config.Script
 	if ud, err := initialize.ParseUserData(userdata); err != nil {
-		fmt.Printf("Failed to parse user-data: %v\nContinuing...\n", err)
-		failure = true
+		log.Fatalf("Failed to parse user-data: %v\n", err)
 	} else {
 		switch t := ud.(type) {
 		case *config.CloudConfig:
@@ -218,68 +126,35 @@ func Main() {
 	fmt.Println("Merging cloud-config from meta-data and user-data")
 	cc := mergeConfigs(ccu, metadata)
 
-	if flags.preInit {
+	if save {
 		var fileData []byte
 
 		if script != nil {
 			fileData = userdataBytes
 		} else {
 			if data, err := yaml.Marshal(cc); err != nil {
-				fmt.Println("Error while marshalling cloud config ", err.Error())
-				os.Exit(1)
+				log.Fatalf("Error while marshalling cloud config %v", err)
 			} else {
 				fileData = data
 			}
 		}
 
-		outDir := flags.outDir
-
-		if len(outDir) > 0 && outDir[len(outDir)-1:] != "/" {
-			outDir = outDir + "/"
-		}
-
-		outFile := outDir + "cloud-config"
-
-		if err := ioutil.WriteFile(outFile, fileData, 444); err != nil {
-			fmt.Println("Error while writing file ", err.Error())
-			os.Exit(1)
+		if err := ioutil.WriteFile(outputFile, fileData, 400); err != nil {
+			log.Fatalf("Error while writing file %v", err)
 		}
 
 		os.Exit(0)
 	}
 
-	var ifaces []network.InterfaceGenerator
-	if flags.convertNetconf != "" {
-		var err error
-		switch flags.convertNetconf {
-		case "debian":
-			ifaces, err = network.ProcessDebianNetconf(metadata.NetworkConfig)
-		case "digitalocean":
-			ifaces, err = network.ProcessDigitalOceanNetconf(metadata.NetworkConfig)
-		default:
-			err = fmt.Errorf("Unsupported network config format %q", flags.convertNetconf)
-		}
-		if err != nil {
-			fmt.Printf("Failed to generate interfaces: %v\n", err)
-			os.Exit(1)
-		}
-	}
-
-	if err = initialize.Apply(cc, ifaces, env); err != nil {
-		fmt.Printf("Failed to apply cloud-config: %v\n", err)
-		os.Exit(1)
+	if err = initialize.Apply(cc, []network.InterfaceGenerator{}, env); err != nil {
+		log.Fatalf("Failed to apply cloud-config: %v", err)
 	}
 
 	if script != nil {
 		if err = runScript(*script, env); err != nil {
-			fmt.Printf("Failed to run script: %v\n", err)
-			os.Exit(1)
+			log.Fatalf("Failed to run script: %v", err)
 		}
 	}
-
-	if failure && !flags.ignoreFailure {
-		os.Exit(1)
-	}
 }
 
 // mergeConfigs merges certain options from md (meta-data from the datasource)
@@ -305,35 +180,38 @@ func mergeConfigs(cc *config.CloudConfig, md datasource.Metadata) (out config.Cl
 
 // getDatasources creates a slice of possible Datasources for cloudinit based
 // on the different source command-line flags.
-func getDatasources() []datasource.Datasource {
+func getDatasources(cfg *rancherConfig.Config) []datasource.Datasource {
 	dss := make([]datasource.Datasource, 0, 5)
-	if flags.sources.file != "" {
-		dss = append(dss, file.NewDatasource(flags.sources.file))
-	}
-	if flags.sources.url != "" {
-		dss = append(dss, url.NewDatasource(flags.sources.url))
-	}
-	if flags.sources.configDrive != "" {
-		dss = append(dss, configdrive.NewDatasource(flags.sources.configDrive))
-	}
-	if flags.sources.metadataService {
-		dss = append(dss, ec2.NewDatasource(ec2.DefaultAddress))
-	}
-	if flags.sources.ec2MetadataService != "" {
-		dss = append(dss, ec2.NewDatasource(flags.sources.ec2MetadataService))
-	}
-	if flags.sources.cloudSigmaMetadataService {
-		dss = append(dss, cloudsigma.NewServerContextService())
-	}
-	if flags.sources.digitalOceanMetadataService != "" {
-		dss = append(dss, digitalocean.NewDatasource(flags.sources.digitalOceanMetadataService))
-	}
-	if flags.sources.waagent != "" {
-		dss = append(dss, waagent.NewDatasource(flags.sources.waagent))
-	}
-	if flags.sources.procCmdLine {
-		dss = append(dss, proc_cmdline.NewDatasource())
+
+	for _, ds := range cfg.CloudInit.Datasources {
+		parts := strings.SplitN(ds, ":", 1)
+
+		switch parts[0] {
+		case "ec2":
+			if len(parts) == 1 {
+				dss = append(dss, ec2.NewDatasource(ec2.DefaultAddress))
+			} else {
+				dss = append(dss, ec2.NewDatasource(parts[1]))
+			}
+		case "file":
+			if len(parts) == 2 {
+				dss = append(dss, file.NewDatasource(parts[1]))
+			}
+		case "url":
+			if len(parts) == 2 {
+				dss = append(dss, url.NewDatasource(parts[1]))
+			}
+		case "cmdline":
+			if len(parts) == 2 {
+				dss = append(dss, proc_cmdline.NewDatasource())
+			}
+		case "configdrive":
+			if len(parts) == 2 {
+				dss = append(dss, configdrive.NewDatasource(parts[1]))
+			}
+		}
 	}
+
 	return dss
 }
 
diff --git a/scripts/dockerimages/04-cloudconfig b/scripts/dockerimages/04-cloudconfig
deleted file mode 100644
index ba555db1..00000000
--- a/scripts/dockerimages/04-cloudconfig
+++ /dev/null
@@ -1,3 +0,0 @@
-FROM base 
-COPY scripts/dockerimages/scripts/cloud-config.sh  /
-CMD ["/cloud-config.sh"]
diff --git a/scripts/dockerimages/04-cloudinit b/scripts/dockerimages/04-cloudinit
new file mode 100644
index 00000000..b84ed95a
--- /dev/null
+++ b/scripts/dockerimages/04-cloudinit
@@ -0,0 +1,3 @@
+FROM base 
+COPY scripts/dockerimages/scripts/cloud-init.sh  /
+CMD ["/cloud-init.sh"]
diff --git a/scripts/dockerimages/scripts/cloud-config.sh b/scripts/dockerimages/scripts/cloud-init.sh
similarity index 100%
rename from scripts/dockerimages/scripts/cloud-config.sh
rename to scripts/dockerimages/scripts/cloud-init.sh