diff --git a/python/lib/cloudutils/serviceConfigServer.py b/python/lib/cloudutils/serviceConfigServer.py
index bedd8851ce8..ea7e125e9ab 100644
--- a/python/lib/cloudutils/serviceConfigServer.py
+++ b/python/lib/cloudutils/serviceConfigServer.py
@@ -121,6 +121,7 @@ class cloudManagementConfig(serviceCfgBase):
         #distro like sl 6.1 needs this folder, or tomcat6 failed to start
         checkHostName()
         bash("mkdir /var/log/cloudstack-management/")
+        bash("chown cloud:cloud -R /var/lib/cloudstack")
         #set max process per account is unlimited
         if os.path.exists("/etc/security/limits.conf"):
             cfo = configFileOps("/etc/security/limits.conf")