diff --git a/tools/xen/build_xva.sh b/tools/xen/build_xva.sh
index 25bf58cb8a..34ef719ab9 100755
--- a/tools/xen/build_xva.sh
+++ b/tools/xen/build_xva.sh
@@ -96,48 +96,27 @@ mkdir -p $STAGING_DIR/opt/stack/devstack
 tar xf /tmp/devstack.tar -C $STAGING_DIR/opt/stack/devstack
 cd $TOP_DIR
 
-# Create an upstart job (task) for devstack, which can interact with the console
-cat >$STAGING_DIR/etc/init/devstack.conf << EOF
-start on stopped rc RUNLEVEL=[2345]
+# Create an systemd task for devstack
+cat >$STAGING_DIR/etc/systemd/system/devstack.service << EOF
+[Unit]
+Description=Install OpenStack by DevStack
 
-console output
-task
+[Service]
+Type=oneshot
+RemainAfterExit=yes
+ExecStartPre=/bin/rm -f /opt/stack/runsh.succeeded
+ExecStart=/bin/su -c "/opt/stack/run.sh" stack
+StandardOutput=tty
+StandardError=tty
 
-pre-start script
-    rm -f /opt/stack/runsh.succeeded
-end script
+[Install]
+WantedBy=multi-user.target
 
-script
-    initctl stop hvc0 || true
-
-    # Read any leftover characters from standard input
-    while read -n 1 -s -t 0.1 -r ignored; do
-        true
-    done
-
-    clear
-
-    chown -R $STACK_USER /opt/stack
-
-    su -c "/opt/stack/run.sh" $STACK_USER
-
-    # Update /etc/issue
-    {
-        echo "OpenStack VM - Installed by DevStack"
-        IPADDR=\$(ip -4 address show eth0 | sed -n 's/.*inet \\([0-9\.]\\+\\).*/\1/p')
-        echo "  Management IP:   \$IPADDR"
-        echo -n "  Devstack run:    "
-        if [ -e /opt/stack/runsh.succeeded ]; then
-            echo "SUCCEEDED"
-        else
-            echo "FAILED"
-        fi
-        echo ""
-    } > /etc/issue
-    initctl start hvc0 > /dev/null 2>&1
-end script
 EOF
 
+# enable this service
+ln -s $STAGING_DIR/etc/systemd/system/devstack.service $STAGING_DIR/etc/systemd/system/multi-user.target.wants/devstack.service
+
 # Configure the hostname
 echo $GUEST_NAME > $STAGING_DIR/etc/hostname
 
@@ -178,6 +157,8 @@ set -eux
 (
   flock -n 9 || exit 1
 
+  sudo chown -R stack /opt/stack
+
   [ -e /opt/stack/runsh.succeeded ] && rm /opt/stack/runsh.succeeded
   echo \$\$ >> /opt/stack/run_sh.pid
 
@@ -187,7 +168,24 @@ set -eux
 
   # Got to the end - success
   touch /opt/stack/runsh.succeeded
+
+  # Update /etc/issue
+  (
+      echo "OpenStack VM - Installed by DevStack"
+      IPADDR=$(ip -4 address show eth0 | sed -n 's/.*inet \([0-9\.]\+\).*/\1/p')
+      echo "  Management IP:   $IPADDR"
+      echo -n "  Devstack run:    "
+      if [ -e /opt/stack/runsh.succeeded ]; then
+          echo "SUCCEEDED"
+      else
+          echo "FAILED"
+      fi
+      echo ""
+  ) > /opt/stack/issue
+  sudo cp /opt/stack/issue /etc/issue
+
   rm /opt/stack/run_sh.pid
 ) 9> /opt/stack/.runsh_lock
 EOF
+
 chmod 755 $STAGING_DIR/opt/stack/run.sh
diff --git a/tools/xen/install_os_domU.sh b/tools/xen/install_os_domU.sh
index 66b9eda474..d2e2c572c6 100755
--- a/tools/xen/install_os_domU.sh
+++ b/tools/xen/install_os_domU.sh
@@ -424,7 +424,7 @@ else
     echo "looking at the console of your domU / checking the log files."
     echo ""
     echo "ssh into your domU now: 'ssh stack@$OS_VM_MANAGEMENT_ADDRESS' using your password"
-    echo "and then do: 'sudo service devstack status' to check if devstack is still running."
+    echo "and then do: 'sudo systemctl status devstack' to check if devstack is still running."
     echo "Check that /opt/stack/runsh.succeeded exists"
     echo ""
     echo "When devstack completes, you can visit the OpenStack Dashboard"
diff --git a/tools/xen/scripts/install_ubuntu_template.sh b/tools/xen/scripts/install_ubuntu_template.sh
index d80ed095e8..6ea364255e 100755
--- a/tools/xen/scripts/install_ubuntu_template.sh
+++ b/tools/xen/scripts/install_ubuntu_template.sh
@@ -50,7 +50,7 @@ disk_size=$(($OSDOMU_VDI_GB * 1024 * 1024 * 1024))
 # however these need to be answered before the netinstall
 # is ready to fetch the preseed file, and as such must be here
 # to get a fully automated install
-pvargs="-- quiet console=hvc0 partman/default_filesystem=ext3 \
+pvargs="quiet console=hvc0 partman/default_filesystem=ext3 \
 console-setup/ask_detect=false locale=${UBUNTU_INST_LOCALE} \
 keyboard-configuration/layoutcode=${UBUNTU_INST_KEYBOARD} \
 netcfg/choose_interface=eth0 \
diff --git a/tools/xen/xenrc b/tools/xen/xenrc
index 2161247b76..60be02f3fe 100644
--- a/tools/xen/xenrc
+++ b/tools/xen/xenrc
@@ -63,8 +63,8 @@ PUB_IP=${PUB_IP:-172.24.4.10}
 PUB_NETMASK=${PUB_NETMASK:-255.255.255.0}
 
 # Ubuntu install settings
-UBUNTU_INST_RELEASE="trusty"
-UBUNTU_INST_TEMPLATE_NAME="Ubuntu 14.04 (64-bit) for DevStack"
+UBUNTU_INST_RELEASE="xenial"
+UBUNTU_INST_TEMPLATE_NAME="Ubuntu 16.04 (64-bit) for DevStack"
 # For 12.04 use "precise" and update template name
 # However, for 12.04, you should be using
 # XenServer 6.1 and later or XCP 1.6 or later