diff --git a/engine/orchestration/src/main/java/com/cloud/vm/VirtualMachineManagerImpl.java b/engine/orchestration/src/main/java/com/cloud/vm/VirtualMachineManagerImpl.java
index 477c42a19199..1dd7360d8903 100755
--- a/engine/orchestration/src/main/java/com/cloud/vm/VirtualMachineManagerImpl.java
+++ b/engine/orchestration/src/main/java/com/cloud/vm/VirtualMachineManagerImpl.java
@@ -45,6 +45,7 @@
 import javax.naming.ConfigurationException;
 import javax.persistence.EntityExistsException;
 
+import com.cloud.storage.VolumeApiServiceImpl;
 import org.apache.cloudstack.affinity.dao.AffinityGroupVMMapDao;
 import org.apache.cloudstack.annotation.AnnotationService;
 import org.apache.cloudstack.annotation.dao.AnnotationDao;
@@ -3765,9 +3766,11 @@ public void checkIfCanUpgrade(final VirtualMachine vmInstance, final ServiceOffe
 
         final List<String> currentTags = StringUtils.csvTagsToList(currentDiskOffering.getTags());
         final List<String> newTags = StringUtils.csvTagsToList(newDiskOffering.getTags());
-        if (!newTags.containsAll(currentTags)) {
-            throw new InvalidParameterValueException("Unable to upgrade virtual machine; the current service offering " + " should have tags as subset of " +
-                    "the new service offering tags. Current service offering tags: " + currentTags + "; " + "new service " + "offering tags: " + newTags);
+        if (VolumeApiServiceImpl.MatchStoragePoolTagsWithDiskOffering.valueIn(vmInstance.getDataCenterId())) {
+            if (!VolumeApiServiceImpl.doesNewDiskOfferingHasTagsAsOldDiskOffering(currentDiskOffering, newDiskOffering)) {
+                    throw new InvalidParameterValueException("Unable to upgrade virtual machine; the current service offering " + " should have tags as subset of " +
+                            "the new service offering tags. Current service offering tags: " + currentTags + "; " + "new service " + "offering tags: " + newTags);
+            }
         }
     }
 
diff --git a/server/src/main/java/com/cloud/api/query/QueryManagerImpl.java b/server/src/main/java/com/cloud/api/query/QueryManagerImpl.java
index d6a3ab6474a1..0ae776bddef2 100644
--- a/server/src/main/java/com/cloud/api/query/QueryManagerImpl.java
+++ b/server/src/main/java/com/cloud/api/query/QueryManagerImpl.java
@@ -3267,7 +3267,7 @@ private Pair<List<ServiceOfferingJoinVO>, Integer> searchForServiceOfferingsInte
         if (currentVmOffering != null) {
             DiskOfferingVO diskOffering = _diskOfferingDao.findByIdIncludingRemoved(currentVmOffering.getDiskOfferingId());
             List<String> storageTags = com.cloud.utils.StringUtils.csvTagsToList(diskOffering.getTags());
-            if (!storageTags.isEmpty()) {
+            if (!storageTags.isEmpty() && VolumeApiServiceImpl.MatchStoragePoolTagsWithDiskOffering.value()) {
                 SearchBuilder<ServiceOfferingJoinVO> sb = _srvOfferingJoinDao.createSearchBuilder();
                 for(String tag : storageTags) {
                     sb.and(tag, sb.entity().getTags(), Op.FIND_IN_SET);
diff --git a/server/src/main/java/com/cloud/storage/VolumeApiServiceImpl.java b/server/src/main/java/com/cloud/storage/VolumeApiServiceImpl.java
index 3bee5df955da..25347c09382d 100644
--- a/server/src/main/java/com/cloud/storage/VolumeApiServiceImpl.java
+++ b/server/src/main/java/com/cloud/storage/VolumeApiServiceImpl.java
@@ -1910,10 +1910,9 @@ private void validateVolumeResizeWithNewDiskOfferingAndLoad(VolumeVO volume, Dis
         }
 
         _configMgr.checkDiskOfferingAccess(_accountMgr.getActiveAccountById(volume.getAccountId()), newDiskOffering, _dcDao.findById(volume.getDataCenterId()));
-
         if (newDiskOffering.getDiskSize() > 0 && !newDiskOffering.isComputeOnly()) {
             newSize[0] = (Long) newDiskOffering.getDiskSize();
-        } else if (newDiskOffering.isCustomized()) {
+        } else if (newDiskOffering.isCustomized() && !newDiskOffering.isComputeOnly()) {
             if (newSize[0] == null) {
                 throw new InvalidParameterValueException("The new disk offering requires that a size be specified.");
             }
@@ -3049,7 +3048,7 @@ public boolean doesTargetStorageSupportDiskOffering(StoragePool destPool, String
         return CollectionUtils.isSubCollection(Arrays.asList(newDiskOfferingTagsAsStringArray), Arrays.asList(storageTagsAsStringArray));
     }
 
-    public boolean doesNewDiskOfferingHasTagsAsOldDiskOffering(DiskOfferingVO oldDO, DiskOfferingVO newDO) {
+    public static boolean doesNewDiskOfferingHasTagsAsOldDiskOffering(DiskOfferingVO oldDO, DiskOfferingVO newDO) {
         String[] oldDOStorageTags = oldDO.getTagsArray();
         String[] newDOStorageTags = newDO.getTagsArray();
         if (oldDOStorageTags.length == 0) {