diff --git a/Gemfile b/Gemfile
index b1ab462..3de0207 100644
--- a/Gemfile
+++ b/Gemfile
@@ -10,10 +10,10 @@ group :development do
   # We depend on Vagrant for development, but we don't add it as a
   # gem dependency because we expect to be installed within the
   # Vagrant environment itself using `vagrant plugin`.
-  gem 'vagrant', git: 'git://github.com/mitchellh/vagrant.git', tag: 'v1.7.4'
-  gem 'dotenv'
+  gem 'vagrant', git: 'https://github.com/mitchellh/vagrant.git'
+  gem 'bundler', '~>1.10.5'
 end
 
 group :plugins do
   gem 'vagrant-azure', path: '.'
-end
+end
\ No newline at end of file
diff --git a/README.md b/README.md
index 4181a1d..fea3408 100644
--- a/README.md
+++ b/README.md
@@ -87,8 +87,8 @@ For instructions on how to setup an Azure Active Directory Application see: http
 * `location`: (Optional) Azure location to build the VM -- defaults to 'westus'
 * `vm_name`: (Optional) Name of the virtual machine
 * `vm_password`: (Optional for *nix) Password for the VM -- This is not recommended for *nix deployments
-* `vm_size`: (Optional) VM size to be used -- defaults to 'Standard_D1'. See: https://azure.microsoft.com/en-us/documentation/articles/virtual-machines-linux-sizes/
-* `vm_image_urn`: (Optional) Name of the virtual machine image urn to use -- defaults to 'canonical:ubuntuserver:16.04.0-DAILY-LTS:latest'. See: https://azure.microsoft.com/en-us/documentation/articles/virtual-machines-linux-cli-ps-findimage/
+* `vm_size`: (Optional) VM size to be used -- defaults to 'Standard_DS2_v2'. See: https://azure.microsoft.com/en-us/documentation/articles/virtual-machines-linux-sizes/
+* `vm_image_urn`: (Optional) Name of the virtual machine image urn to use -- defaults to 'canonical:ubuntuserver:16.04-LTS:latest'. See: https://azure.microsoft.com/en-us/documentation/articles/virtual-machines-linux-cli-ps-findimage/
 * `virtual_network_name`: (Optional) Name of the virtual network resource
 * `subnet_name`: (Optional) Name of the virtual network subnet resource
 * `instance_ready_timeout`: (Optional) The timeout to wait for an instance to become ready -- default 120 seconds.
diff --git a/Rakefile b/Rakefile
index 9aa8103..f17bb0b 100644
--- a/Rakefile
+++ b/Rakefile
@@ -4,6 +4,7 @@
 
 require 'rubygems'
 require 'bundler/setup'
+require 'rspec/core/rake_task'
 
 $stdout.sync = true
 $stderr.sync = true
@@ -11,3 +12,10 @@ $stderr.sync = true
 Dir.chdir(File.expand_path('../', __FILE__))
 
 Bundler::GemHelper.install_tasks
+
+# Install the `spec` task so that we can run tests.
+RSpec::Core::RakeTask.new(:spec) do |t|
+  t.rspec_opts = '--order defined'
+end
+# Default task is to run the unit tests
+task :default => :spec
diff --git a/dummy.box b/dummy.box
index 1c6b98e..d404305 100644
Binary files a/dummy.box and b/dummy.box differ
diff --git a/lib/vagrant-azure/action/read_ssh_info.rb b/lib/vagrant-azure/action/read_ssh_info.rb
index 33efb27..0017e7b 100644
--- a/lib/vagrant-azure/action/read_ssh_info.rb
+++ b/lib/vagrant-azure/action/read_ssh_info.rb
@@ -24,9 +24,9 @@ def call(env)
         def read_ssh_info(azure, env)
           return nil if env[:machine].id.nil?
           parsed = parse_machine_id(env[:machine].id)
-          public_ip = azure.network.public_ipaddresses.get(parsed[:group], "#{parsed[:name]}-vagrantPublicIP").value!.body
+          public_ip = azure.network.public_ipaddresses.get(parsed[:group], "#{parsed[:name]}-vagrantPublicIP")
 
-          {:host => public_ip.properties.dns_settings.fqdn, :port => 22}
+          {:host => public_ip.dns_settings.fqdn, :port => 22}
         end
       end
     end
diff --git a/lib/vagrant-azure/action/read_state.rb b/lib/vagrant-azure/action/read_state.rb
index c95ad09..b1a04b4 100644
--- a/lib/vagrant-azure/action/read_state.rb
+++ b/lib/vagrant-azure/action/read_state.rb
@@ -29,9 +29,9 @@ def read_state(azure, machine)
           parsed = parse_machine_id(machine.id)
           vm = nil
           begin
-            vm = azure.compute.virtual_machines.get(parsed[:group], parsed[:name], 'instanceView').value!.body
+            vm = azure.compute.virtual_machines.get(parsed[:group], parsed[:name], 'instanceView')
           rescue MsRestAzure::AzureOperationError => ex
-            if vm.nil? || tearing_down?(vm.properties.instance_view.statuses)
+            if vm.nil? || tearing_down?(vm.instance_view.statuses)
               # The machine can't be found
               @logger.info('Machine not found or terminated, assuming it got destroyed.')
               machine.id = nil
@@ -40,7 +40,7 @@ def read_state(azure, machine)
           end
 
           # Return the state
-          power_state(vm.properties.instance_view.statuses)
+          power_state(vm.instance_view.statuses)
         end
 
       end
diff --git a/lib/vagrant-azure/action/read_winrm_info.rb b/lib/vagrant-azure/action/read_winrm_info.rb
index b64d197..e84f6c2 100644
--- a/lib/vagrant-azure/action/read_winrm_info.rb
+++ b/lib/vagrant-azure/action/read_winrm_info.rb
@@ -28,9 +28,9 @@ def call(env)
         def read_winrm_info(azure, env)
           return nil if env[:machine].id.nil?
           parsed = parse_machine_id(env[:machine].id)
-          public_ip = azure.network.public_ipaddresses.get(parsed[:group], "#{parsed[:name]}-vagrantPublicIP").value!.body
+          public_ip = azure.network.public_ipaddresses.get(parsed[:group], "#{parsed[:name]}-vagrantPublicIP")
 
-          {:host => public_ip.properties.dns_settings.fqdn, :port => env[:machine].config.winrm.port}
+          {:host => public_ip.dns_settings.fqdn, :port => env[:machine].config.winrm.port}
         end
       end
     end
diff --git a/lib/vagrant-azure/action/run_instance.rb b/lib/vagrant-azure/action/run_instance.rb
index 81103f5..bc4c486 100644
--- a/lib/vagrant-azure/action/run_instance.rb
+++ b/lib/vagrant-azure/action/run_instance.rb
@@ -131,11 +131,11 @@ def call(env)
 
           deployment_params = build_deployment_params(template_params, deployment_params.reject{|_,v| v.nil?})
 
-          env[:ui].info('Starting deployment')
+          env[:ui].info(' -- Starting deployment')
           env[:metrics]['deployment_time'] = Util::Timer.time do
             put_deployment(azure, resource_group_name, deployment_params)
           end
-          env[:ui].info('Finished deploying')
+          env[:ui].info(' -- Finished deploying')
 
           # Immediately save the ID since it is created at this point.
           env[:machine].id = serialize_machine_id(resource_group_name, vm_name, location)
@@ -176,20 +176,21 @@ def call(env)
         end
 
         def get_image_os(image_details)
-          image_details.properties.os_disk_image.operating_system
+          image_details.os_disk_image.operating_system
         end
 
         def get_image_details(azure, location, publisher, offer, sku, version)
           if version == 'latest'
-            latest = azure.compute.virtual_machine_images.list(location, publisher, offer, sku).value!.body.last
-            azure.compute.virtual_machine_images.get(location, publisher, offer, sku, latest.name).value!.body
+            images = azure.compute.virtual_machine_images.list(location, publisher, offer, sku)
+            latest = images.sort_by(&:name).last
+            azure.compute.virtual_machine_images.get(location, publisher, offer, sku, latest.name)
           else
-            azure.compute.virtual_machine_images.get(location, publisher, offer, sku, version).value!.body
+            azure.compute.virtual_machine_images.get(location, publisher, offer, sku, version)
           end
         end
 
         def put_deployment(azure, rg_name, params)
-          azure.resources.deployments.create_or_update(rg_name, 'vagrant', params).value!.body
+          azure.resources.deployments.create_or_update(rg_name, 'vagrant', params)
         end
 
         def put_resource_group(azure, name, location)
@@ -197,11 +198,12 @@ def put_resource_group(azure, name, location)
             rg.location = location
           end
 
-          azure.resources.resource_groups.create_or_update(name, params).value!.body
+          azure.resources.resource_groups.create_or_update(name, params)
         end
 
         # This method generates the deployment template
         def render_deployment_template(options)
+          self_signed_cert_resource = nil
           if options[:operating_system] == 'Windows' && options[:winrm_install_self_signed_cert]
             setup_winrm_powershell = Vagrant::Util::TemplateRenderer.render('arm/setup-winrm.ps1', options.merge({template_root: template_root}))
             encoded_setup_winrm_powershell = setup_winrm_powershell.
@@ -216,7 +218,7 @@ def render_deployment_template(options)
         def build_deployment_params(template_params, deployment_params)
           params = ::Azure::ARM::Resources::Models::Deployment.new
           params.properties = ::Azure::ARM::Resources::Models::DeploymentProperties.new
-          if (template_params[:deployment_template].nil?)
+          if template_params[:deployment_template].nil?
             params.properties.template = JSON.parse(render_deployment_template(template_params))
           else
             params.properties.template = JSON.parse(template_params[:deployment_template])
diff --git a/lib/vagrant-azure/action/start_instance.rb b/lib/vagrant-azure/action/start_instance.rb
index 61680d6..a915509 100644
--- a/lib/vagrant-azure/action/start_instance.rb
+++ b/lib/vagrant-azure/action/start_instance.rb
@@ -36,7 +36,7 @@ def call(env)
             env[:ui].info(I18n.t('vagrant_azure.waiting_for_ready'))
 
             task = await_true(env) do |vm|
-              running?(vm.properties.instance_view.statuses)
+              running?(vm.instance_view.statuses)
             end
 
             if task.value
diff --git a/lib/vagrant-azure/action/stop_instance.rb b/lib/vagrant-azure/action/stop_instance.rb
index 42f66bb..b0a184b 100644
--- a/lib/vagrant-azure/action/stop_instance.rb
+++ b/lib/vagrant-azure/action/stop_instance.rb
@@ -36,7 +36,7 @@ def call(env)
               env[:ui].info(I18n.t('vagrant_azure.waiting_for_stop'))
 
               task = await_true(env) do |vm|
-                stopped?(vm.properties.instance_view.statuses)
+                stopped?(vm.instance_view.statuses)
               end
 
               if task.value
diff --git a/lib/vagrant-azure/action/terminate_instance.rb b/lib/vagrant-azure/action/terminate_instance.rb
index 52724aa..56107b6 100644
--- a/lib/vagrant-azure/action/terminate_instance.rb
+++ b/lib/vagrant-azure/action/terminate_instance.rb
@@ -21,8 +21,10 @@ def call(env)
           begin
             env[:ui].info(I18n.t('vagrant_azure.terminating', parsed))
             env[:ui].info('Deleting resource group')
-            env[:azure_arm_service].resources.resource_groups.delete(parsed[:group]).value!.body
-            env[:ui].info('Resource group deleted...')
+
+            # Call the begin_xxx_async version to kick off the delete, but don't wait for the resource group to be cleaned up
+            env[:azure_arm_service].resources.resource_groups.begin_delete_async(parsed[:group]).value!
+            env[:ui].info('Resource group is deleting... Moving on.')
           rescue MsRestAzure::AzureOperationError => ex
             unless ex.response.status == 404
               raise ex
diff --git a/lib/vagrant-azure/config.rb b/lib/vagrant-azure/config.rb
index 80baa23..5f917c9 100644
--- a/lib/vagrant-azure/config.rb
+++ b/lib/vagrant-azure/config.rb
@@ -147,19 +147,19 @@ def finalize!
         @vm_name = Haikunator.haikunate(100) if @vm_name == UNSET_VALUE
         @resource_group_name = Haikunator.haikunate(100) if @resource_group_name == UNSET_VALUE
         @vm_password = nil if @vm_password == UNSET_VALUE
-        @vm_image_urn = 'canonical:ubuntuserver:16.04.0-DAILY-LTS:latest' if @vm_image_urn == UNSET_VALUE
+        @vm_image_urn = 'canonical:ubuntuserver:16.04.0-LTS:latest' if @vm_image_urn == UNSET_VALUE
         @location = 'westus' if @location == UNSET_VALUE
         @virtual_network_name = nil if @virtual_network_name == UNSET_VALUE
         @subnet_name = nil if @subnet_name == UNSET_VALUE
         @tcp_endpoints = nil if @tcp_endpoints == UNSET_VALUE
-        @vm_size = 'Standard_D1' if @vm_size == UNSET_VALUE
+        @vm_size = 'Standard_DS2_v2' if @vm_size == UNSET_VALUE
         @availability_set_name = nil if @availability_set_name == UNSET_VALUE
 
         @instance_ready_timeout = 120 if @instance_ready_timeout == UNSET_VALUE
         @instance_check_interval = 2 if @instance_check_interval == UNSET_VALUE
 
-        @admin_username = ENV['AZURE_VM_ADMIN_USERNAME'] if @admin_username == UNSET_VALUE
-        @admin_password = ENV['AZURE_VM_ADMIN_PASSWORD'] if @admin_password == UNSET_VALUE
+        @admin_username = (ENV['AZURE_VM_ADMIN_USERNAME'] || 'vagrant') if @admin_username == UNSET_VALUE
+        @admin_password = (ENV['AZURE_VM_ADMIN_PASSWORD'] || '$Vagrant(0)') if @admin_password == UNSET_VALUE
         @winrm_install_self_signed_cert = true if @winrm_install_self_signed_cert == UNSET_VALUE
         @deployment_template = nil if @deployment_template == UNSET_VALUE
       end
diff --git a/lib/vagrant-azure/provider.rb b/lib/vagrant-azure/provider.rb
index f1f53b2..fa1393e 100644
--- a/lib/vagrant-azure/provider.rb
+++ b/lib/vagrant-azure/provider.rb
@@ -14,6 +14,8 @@ def initialize(machine)
         # Load the driver
         machine_id_changed
 
+        # turn off nfs functionality by default, so the machine will fall back to rsync by default
+        @machine.config.nfs.functional = false
         @machine.config.winrm.password = @machine.provider_config.admin_password
         @machine.config.winrm.username = @machine.provider_config.admin_username
       end
diff --git a/lib/vagrant-azure/util/vm_await.rb b/lib/vagrant-azure/util/vm_await.rb
index 8f8c756..b16468e 100644
--- a/lib/vagrant-azure/util/vm_await.rb
+++ b/lib/vagrant-azure/util/vm_await.rb
@@ -18,7 +18,7 @@ def await_true(env)
             end
 
             count += 1
-            vm = azure.compute.virtual_machines.get(parsed[:group], parsed[:name], 'instanceView').value!.body
+            vm = azure.compute.virtual_machines.get(parsed[:group], parsed[:name], 'instanceView')
             if yield(vm)
               task.shutdown
               true
diff --git a/lib/vagrant-azure/version.rb b/lib/vagrant-azure/version.rb
index 4852951..ab37ad5 100644
--- a/lib/vagrant-azure/version.rb
+++ b/lib/vagrant-azure/version.rb
@@ -4,6 +4,6 @@
 
 module VagrantPlugins
   module Azure
-    VERSION = '2.0.0.pre1'
+    VERSION = '2.0.0.pre2'.freeze
   end
 end
diff --git a/templates/arm/deployment.json.erb b/templates/arm/deployment.json.erb
index 409dc96..72cf5a6 100644
--- a/templates/arm/deployment.json.erb
+++ b/templates/arm/deployment.json.erb
@@ -32,7 +32,7 @@
     },
     "vmSize": {
       "type": "string",
-      "defaultValue": "Standard_D1",
+      "defaultValue": "Standard_DS2_v2",
       "metadata": {
         "description": "Size of the VM"
       }
@@ -59,7 +59,7 @@
     },
     "imageSku": {
       "type": "string",
-      "defaultValue": "16.04.0-DAILY-LTS",
+      "defaultValue": "16.04-LTS",
       "metadata": {
         "description": "Name of the image sku"
       }
@@ -103,7 +103,7 @@
     "nicName": "[concat(parameters('vmName'), '-vagrantNIC')]",
     "publicIPAddressName": "[concat(parameters('vmName'), '-vagrantPublicIP')]",
     "publicIPAddressType": "Dynamic",
-    "storageAccountType": "Standard_LRS",
+    "storageAccountType": "Premium_LRS",
     "networkSecurityGroupName": "[concat(parameters('vmName'), '-vagrantNSG')]",
     "sshKeyPath": "[concat('/home/',parameters('adminUsername'),'/.ssh/authorized_keys')]",
     "vnetID": "[resourceId('Microsoft.Network/virtualNetworks', parameters('virtualNetworkName'))]",
@@ -299,12 +299,6 @@
               "id": "[resourceId('Microsoft.Network/networkInterfaces', variables('nicName'))]"
             }
           ]
-        },
-        "diagnosticsProfile": {
-          "bootDiagnostics": {
-            "enabled": "true",
-            "storageUri": "[concat('http://',variables('storageAccountName'),'.blob.core.windows.net')]"
-          }
         }
       }
     }
diff --git a/vagrant-azure.gemspec b/vagrant-azure.gemspec
index 5b8c72d..58d1927 100644
--- a/vagrant-azure.gemspec
+++ b/vagrant-azure.gemspec
@@ -8,6 +8,7 @@ require 'vagrant-azure/version'
 Gem::Specification.new do |s|
   s.name          = 'vagrant-azure'
   s.version       = VagrantPlugins::Azure::VERSION
+  s.platform      = Gem::Platform::RUBY
   s.authors       = %w(Azure)
   s.description   = 'Enable Vagrant to manage machines in Microsoft Azure.'
   s.summary       = 'Enable Vagrant to manage Windows and Linux machines in Microsoft Azure.'
@@ -18,15 +19,16 @@ Gem::Specification.new do |s|
   s.bindir        = 'bin'
   s.executables   = s.files.grep(%r{^bin/}) { |f| File.basename(f) }
 
-  s.add_runtime_dependency 'azure_mgmt_resources',  '~>0.2.1'
-  s.add_runtime_dependency 'azure_mgmt_compute',    '~>0.2.1'
-  s.add_runtime_dependency 'azure_mgmt_network',    '~>0.2.1'
-  s.add_runtime_dependency 'azure_mgmt_storage',    '~>0.2.1'
+  s.add_runtime_dependency 'azure_mgmt_resources',  '~>0.8.0'
+  s.add_runtime_dependency 'azure_mgmt_compute',    '~>0.8.0'
+  s.add_runtime_dependency 'azure_mgmt_network',    '~>0.8.0'
+  s.add_runtime_dependency 'azure_mgmt_storage',    '~>0.8.0'
   s.add_runtime_dependency 'haikunator',            '~>1.1'
+  s.add_runtime_dependency 'highline',              '~>1.7'
 
   s.add_development_dependency 'bundler',           '~>1.9'
   s.add_development_dependency 'rake',              '~>11.1'
   s.add_development_dependency 'rspec',             '~>3.4'
-  s.add_development_dependency 'simplecov',         '~>0.11.2'
+  s.add_development_dependency 'simplecov',         '~>0.11'
   s.add_development_dependency 'coveralls',         '~>0.8'
 end