diff --git a/testutil/ciao-down/cloudinit.go b/testutil/ciao-down/cloudinit.go
index ac78cfe94..bc2937684 100644
--- a/testutil/ciao-down/cloudinit.go
+++ b/testutil/ciao-down/cloudinit.go
@@ -34,9 +34,6 @@ mounts:
 {{if len .UIPath }} - [hostui, {{.UIPath}}, 9p, "x-systemd.automount,x-systemd.device-timeout=10,nofail,trans=virtio,version=9p2000.L", "0", "0"]{{end}}
 write_files:
 {{- if len $.HTTPProxy }}
- - content: |
-     Acquire::http::Proxy "{{$.HTTPProxy}}";
-   path: /etc/apt/apt.conf
  - content: |
      [Service]
      Environment="HTTP_PROXY={{$.HTTPProxy}}"{{if len .HTTPSProxy}} "HTTPS_PROXY={{.HTTPSProxy}}{{end}}"{{if len .NoProxy}} "NO_PROXY={{.NoProxy}},singlevm{{end}}"
@@ -62,6 +59,15 @@ write_files:
      deb https://apt.dockerproject.org/repo ubuntu-xenial main
    path: /etc/apt/sources.list.d/docker.list
 
+apt:
+{{- if len $.HTTPProxy }}
+  proxy: "{{$.HTTPProxy}}"
+{{- end}}
+{{- if len $.HTTPSProxy }}
+  https_proxy: "{{$.HTTPSProxy}}"
+{{- end}}
+package_upgrade: true
+
 runcmd:
  - echo "127.0.0.1 singlevm" >> /etc/hosts
  - mount hostgo
@@ -109,10 +115,6 @@ runcmd:
  - {{template "ENV" .}}apt-get update
  - {{template "CHECK" .}}
 
- - curl -X PUT -d "Upgrading" 10.0.2.2:{{.HTTPServerPort}}
- - {{template "ENV" .}}apt-get upgrade -y
- - {{template "CHECK" .}}
-
  - curl -X PUT -d "Installing Docker" 10.0.2.2:{{.HTTPServerPort}}
  - {{template "ENV" .}}apt-get install docker-engine -y
  - {{template "CHECK" .}}
@@ -256,9 +258,6 @@ mounts:
  - [hostgo, {{.GoPath}}, 9p, "x-systemd.automount,x-systemd.device-timeout=10,nofail,trans=virtio,version=9p2000.L", "0", "0"]
 write_files:
 {{- if len $.HTTPProxy }}
- - content: |
-     Acquire::http::Proxy "{{$.HTTPProxy}}";
-   path: /etc/apt/apt.conf
  - content: |
      [Service]
      Environment="HTTP_PROXY={{$.HTTPProxy}}"{{if len .HTTPSProxy}} "HTTPS_PROXY={{.HTTPSProxy}}{{end}}"{{if len .NoProxy}} "NO_PROXY={{.NoProxy}},singlevm{{end}}"
@@ -283,6 +282,15 @@ write_files:
      deb https://apt.dockerproject.org/repo ubuntu-xenial main
    path: /etc/apt/sources.list.d/docker.list
 
+apt:
+{{- if len $.HTTPProxy }}
+  proxy: "{{$.HTTPProxy}}"
+{{- end}}
+{{- if len $.HTTPSProxy }}
+  https_proxy: "{{$.HTTPSProxy}}"
+{{- end}}
+package_upgrade: true
+
 runcmd:
  - echo "127.0.0.1 singlevm" >> /etc/hosts
  - mount hostgo
@@ -330,15 +338,10 @@ runcmd:
  - {{template "ENV" .}}curl -fsSL http://download.opensuse.org/repositories/home:clearlinux:preview:clear-containers-2.1/xUbuntu_16.04/Release.key | sudo apt-key add -
  - {{template "CHECK" .}}
 
-
  - curl -X PUT -d "Retrieving updated list of packages" 10.0.2.2:{{.HTTPServerPort}}
  - {{template "ENV" .}}apt-get update
  - {{template "CHECK" .}}
 
- - curl -X PUT -d "Upgrading" 10.0.2.2:{{.HTTPServerPort}}
- - {{template "ENV" .}}apt-get upgrade -y
- - {{template "CHECK" .}}
-
  - curl -X PUT -d "Installing Clear Containers Runtime" 10.0.2.2:{{.HTTPServerPort}}
  - {{template "ENV" .}}apt-get install cc-oci-runtime -y
  - {{template "CHECK" .}}