diff --git a/features/apimgt-extensions/org.wso2.carbon.apimgt.application.extension.feature/src/main/resources/p2.inf b/features/apimgt-extensions/org.wso2.carbon.apimgt.application.extension.feature/src/main/resources/p2.inf
index 1d8124571f9..61654c2892b 100644
--- a/features/apimgt-extensions/org.wso2.carbon.apimgt.application.extension.feature/src/main/resources/p2.inf
+++ b/features/apimgt-extensions/org.wso2.carbon.apimgt.application.extension.feature/src/main/resources/p2.inf
@@ -1,3 +1,5 @@
 instructions.configure = \
 org.eclipse.equinox.p2.touchpoint.natives.mkdir(path:${installFolder}/../../deployment/server/webapps/);\
-org.eclipse.equinox.p2.touchpoint.natives.copy(source:${installFolder}/../features/org.wso2.carbon.apimgt.application.extension_${feature.version}/webapps/,target:${installFolder}/../../deployment/server/webapps/,overwrite:true);\
\ No newline at end of file
+org.eclipse.equinox.p2.touchpoint.natives.copy(source:${installFolder}/../features/org.wso2.carbon.apimgt.application.extension_${feature.version}/webapps/,target:${installFolder}/../../deployment/server/webapps/,overwrite:true);\
+org.eclipse.equinox.p2.touchpoint.natives.copy(source:${installFolder}/../features/org.wso2.carbon.apimgt.application.extension_${feature.version}/synapse-configs/default/api/_API_Application_Registration_.xml,target:${installFolder}/../../deployment/server/synapse-configs/default/api/_API_Application_Registration_.xml,overwrite:true);\
+org.eclipse.equinox.p2.touchpoint.natives.copy(source:${installFolder}/../features/org.wso2.carbon.apimgt.application.extension_${feature.version}/synapse-configs/default/sequences/_api_registration_fault_.xml,target:${installFolder}/../../deployment/server/synapse-configs/default/sequences/_api_registration_fault_.xml,overwrite:true);\
diff --git a/features/apimgt-extensions/org.wso2.carbon.apimgt.application.extension.feature/src/main/resources/synapse-configs/default/api/_API_Application_Registration_.xml b/features/apimgt-extensions/org.wso2.carbon.apimgt.application.extension.feature/src/main/resources/synapse-configs/default/api/_API_Application_Registration_.xml
new file mode 100644
index 00000000000..7e25c013420
--- /dev/null
+++ b/features/apimgt-extensions/org.wso2.carbon.apimgt.application.extension.feature/src/main/resources/synapse-configs/default/api/_API_Application_Registration_.xml
@@ -0,0 +1,63 @@
+<api xmlns="http://ws.apache.org/ns/synapse" name="_WSO2APIRegistrationApplication_" context="/api-application-registration">
+    <resource methods="POST" url-mapping="/register/tenants" faultSequence="_api_registration_fault_">
+        <inSequence>
+            <property name="uri.var.portnum" expression="get-property('system','iot.core.https.port')"/>
+            <property name="uri.var.hostname" expression="get-property('system','iot.core.host')"/>
+            <send>
+                <endpoint>
+                    <http uri-template="https://{uri.var.hostname}:{uri.var.portnum}/api-application-registration">
+                        <timeout>
+                            <duration>60000</duration>
+                            <responseAction>fault</responseAction>
+                        </timeout>
+                    </http>
+                </endpoint>
+            </send>
+        </inSequence>
+        <outSequence>
+            <send/>
+        </outSequence>
+    </resource>
+    <resource methods="POST" url-mapping="/register" faultSequence="_api_registration_fault_">
+        <inSequence>
+            <property name="uri.var.portnum" expression="get-property('system','iot.core.https.port')"/>
+            <property name="uri.var.hostname" expression="get-property('system','iot.core.host')"/>
+            <send>
+                <endpoint>
+                    <http uri-template="https://{uri.var.hostname}:{uri.var.portnum}/api-application-registration">
+                        <timeout>
+                            <duration>60000</duration>
+                            <responseAction>fault</responseAction>
+                        </timeout>
+                    </http>
+                </endpoint>
+            </send>
+        </inSequence>
+        <outSequence>
+            <send/>
+        </outSequence>
+    </resource>
+    <resource methods="DELETE" url-mapping="/unregister" faultSequence="_api_registration_fault_">
+        <inSequence>
+            <property name="uri.var.portnum" expression="get-property('system','iot.core.https.port')"/>
+            <property name="uri.var.hostname" expression="get-property('system','iot.core.host')"/>
+            <send>
+                <endpoint>
+                    <http uri-template="https://{uri.var.hostname}:{uri.var.portnum}/api-application-registration">
+                        <timeout>
+                            <duration>60000</duration>
+                            <responseAction>fault</responseAction>
+                        </timeout>
+                    </http>
+                </endpoint>
+            </send>
+        </inSequence>
+        <outSequence>
+            <send/>
+        </outSequence>
+    </resource>
+    <handlers>
+        <handler class="org.wso2.carbon.apimgt.gateway.handlers.ext.APIManagerCacheExtensionHandler"/>
+        <handler class="org.wso2.carbon.apimgt.gateway.handlers.common.SynapsePropertiesHandler"/>
+    </handlers>
+</api>
\ No newline at end of file
diff --git a/features/apimgt-extensions/org.wso2.carbon.apimgt.application.extension.feature/src/main/resources/synapse-configs/default/sequences/_api_registration_fault_.xml b/features/apimgt-extensions/org.wso2.carbon.apimgt.application.extension.feature/src/main/resources/synapse-configs/default/sequences/_api_registration_fault_.xml
new file mode 100644
index 00000000000..335a9abaf39
--- /dev/null
+++ b/features/apimgt-extensions/org.wso2.carbon.apimgt.application.extension.feature/src/main/resources/synapse-configs/default/sequences/_api_registration_fault_.xml
@@ -0,0 +1,22 @@
+<?xml version="1.0" encoding="ISO-8859-1"?>
+<!--
+  ~  Copyright (c) 2016, WSO2 Inc. (http://wso2.com) All Rights Reserved.
+  ~
+  ~  WSO2 Inc. licenses this file to you under the Apache License,
+  ~  Version 2.0 (the "License"); you may not use this file except
+  ~  in compliance with the License.
+  ~  You may obtain a copy of the License at
+  ~
+  ~    http://www.apache.org/licenses/LICENSE-2.0
+  ~
+  ~  Unless required by applicable law or agreed to in writing,
+  ~  software distributed under the License is distributed on an
+  ~  "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+  ~  KIND, either express or implied.  See the License for the
+  ~  specific language governing permissions and limitations
+  ~  under the License.
+  -->
+<sequence xmlns="http://ws.apache.org/ns/synapse" name="_api_registration_fault_">
+    <property name="ERROR_MESSAGE" value="Error occurred while invoking api application registration endpoint"/>
+    <sequence key="fault"/>
+</sequence>
diff --git a/features/application-mgt/org.wso2.carbon.device.application.mgt.server.feature/pom.xml b/features/application-mgt/org.wso2.carbon.device.application.mgt.server.feature/pom.xml
index d8a8448faca..dc53590a671 100644
--- a/features/application-mgt/org.wso2.carbon.device.application.mgt.server.feature/pom.xml
+++ b/features/application-mgt/org.wso2.carbon.device.application.mgt.server.feature/pom.xml
@@ -60,6 +60,10 @@
             <artifactId>cxf-rt-frontend-jaxrs</artifactId>
             <version>${cxf.version}</version>
         </dependency>
+        <dependency>
+            <groupId>com.h2database.wso2</groupId>
+            <artifactId>h2-database-engine</artifactId>
+        </dependency>
 
         <!--<dependency>-->
             <!--<groupId>javax.servlet.jsp</groupId>-->
@@ -108,6 +112,39 @@
                     </execution>
                 </executions>
             </plugin>
+            <plugin>
+                <groupId>org.apache.maven.plugins</groupId>
+                <artifactId>maven-antrun-plugin</artifactId>
+                <executions>
+                    <execution>
+                        <id>create-app-mgt-schema</id>
+                        <phase>package</phase>
+                        <goals>
+                            <goal>run</goal>
+                        </goals>
+                        <configuration>
+                            <tasks>
+                                <echo message="########### Create Application Management H2 Schema ###########" />
+                                <property name="db.dir" value="target/maven-shared-archive-resources/database" />
+                                <property name="userid" value="wso2carbon" />
+                                <property name="password" value="wso2carbon" />
+                                <property name="dbURL" value="jdbc:h2:file:${basedir}/${db.dir}/WSO2DM_APPM_DB;DB_CLOSE_ON_EXIT=FALSE" />
+
+                                <mkdir dir="${basedir}/${db.dir}" />
+
+                                <sql driver="org.h2.Driver" url="${dbURL}" userid="${userid}" password="${password}" autocommit="true" onerror="continue">
+                                    <classpath refid="maven.dependency.classpath" />
+                                    <classpath refid="maven.compile.classpath" />
+                                    <classpath refid="maven.runtime.classpath" />
+
+                                    <fileset file="${basedir}/src/main/resources/dbscripts/cdm/application-mgt/h2.sql" />
+                                </sql>
+                                <echo message="##################### END ####################" />
+                            </tasks>
+                        </configuration>
+                    </execution>
+                </executions>
+            </plugin>
             <plugin>
                 <groupId>org.wso2.maven</groupId>
                 <artifactId>carbon-p2-plugin</artifactId>
diff --git a/features/application-mgt/org.wso2.carbon.device.application.mgt.server.feature/src/main/resources/p2.inf b/features/application-mgt/org.wso2.carbon.device.application.mgt.server.feature/src/main/resources/p2.inf
index a12c244131a..1a8247162f8 100644
--- a/features/application-mgt/org.wso2.carbon.device.application.mgt.server.feature/src/main/resources/p2.inf
+++ b/features/application-mgt/org.wso2.carbon.device.application.mgt.server.feature/src/main/resources/p2.inf
@@ -1,4 +1,5 @@
 instructions.configure = \
+org.eclipse.equinox.p2.touchpoint.natives.copy(source:${installFolder}/../features/org.wso2.carbon.device.application.mgt.server_${feature.version}/database/,target:${installFolder}/../../../repository/database/,overwrite:true);\
 org.eclipse.equinox.p2.touchpoint.natives.copy(source:${installFolder}/../features/org.wso2.carbon.device.application.mgt.server_${feature.version}/conf/application-mgt.xml,target:${installFolder}/../../conf/application-mgt.xml,overwrite:true);\
 org.eclipse.equinox.p2.touchpoint.natives.copy(source:${installFolder}/../features/org.wso2.carbon.device.application.mgt.server_${feature.version}/conf/datasources/application-mgt-datasources.xml,target:${installFolder}/../../conf/datasources/application-mgt-datasources.xml,overwrite:true);\
 org.eclipse.equinox.p2.touchpoint.natives.copy(source:${installFolder}/../features/org.wso2.carbon.device.application.mgt.server_${feature.version}/dbscripts/cdm/application-mgt,target:${installFolder}/../../../dbscripts/cdm/application-mgt,overwrite:true);\
diff --git a/features/device-mgt/org.wso2.carbon.device.mgt.basics.feature/src/main/resources/conf/datasources/cdm-datasources.xml b/features/device-mgt/org.wso2.carbon.device.mgt.basics.feature/src/main/resources/conf/datasources/cdm-datasources.xml
new file mode 100755
index 00000000000..78db49688e9
--- /dev/null
+++ b/features/device-mgt/org.wso2.carbon.device.mgt.basics.feature/src/main/resources/conf/datasources/cdm-datasources.xml
@@ -0,0 +1,65 @@
+<!--
+  ~ Copyright (c) 2017, WSO2 Inc. (http://www.wso2.org) All Rights Reserved.
+  ~
+  ~ WSO2 Inc. licenses this file to you under the Apache License,
+  ~ Version 2.0 (the "License"); you may not use this file except
+  ~ in compliance with the License.
+  ~ You may obtain a copy of the License at
+  ~
+  ~ http://www.apache.org/licenses/LICENSE-2.0
+  ~
+  ~ Unless required by applicable law or agreed to in writing,
+  ~ software distributed under the License is distributed on an
+  ~ "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+  ~ KIND, either express or implied. See the License for the
+  ~ specific language governing permissions and limitations
+  ~ under the License.
+  -->
+
+<datasources-configuration xmlns:svns="http://org.wso2.securevault/configuration">
+    <providers>
+        <provider>org.wso2.carbon.ndatasource.rdbms.RDBMSDataSourceReader</provider>
+    </providers>
+    <datasources>
+        <datasource>
+            <name>DM_DS</name>
+            <description>The datasource used for CDM</description>
+            <jndiConfig>
+                <name>jdbc/DM_DS</name>
+            </jndiConfig>
+            <definition type="RDBMS">
+                <configuration>
+                    <url>jdbc:h2:./repository/database/WSO2DM_DB;DB_CLOSE_ON_EXIT=FALSE;AUTO_SERVER=TRUE;LOCK_TIMEOUT=60000</url>
+                    <username>wso2carbon</username>
+                    <password>wso2carbon</password>
+                    <driverClassName>org.h2.Driver</driverClassName>
+                    <maxActive>50</maxActive>
+                    <maxWait>60000</maxWait>
+                    <testOnBorrow>true</testOnBorrow>
+                    <validationQuery>SELECT 1</validationQuery>
+                    <validationInterval>30000</validationInterval>
+                </configuration>
+            </definition>
+        </datasource>
+        <datasource>
+            <name>DM_ARCHIVAL_DS</name>
+            <description>The archival datasource used for CDM</description>
+            <jndiConfig>
+                <name>jdbc/DM_ARCHIVAL_DS</name>
+            </jndiConfig>
+            <definition type="RDBMS">
+                <configuration>
+                    <url>jdbc:h2:./repository/database/WSO2DM_ARCHIVAL_DS;DB_CLOSE_ON_EXIT=FALSE</url>
+                    <username>wso2carbon</username>
+                    <password>wso2carbon</password>
+                    <driverClassName>org.h2.Driver</driverClassName>
+                    <maxActive>50</maxActive>
+                    <maxWait>60000</maxWait>
+                    <testOnBorrow>true</testOnBorrow>
+                    <validationQuery>SELECT 1</validationQuery>
+                    <validationInterval>30000</validationInterval>
+                </configuration>
+            </definition>
+        </datasource>
+    </datasources>
+</datasources-configuration>
diff --git a/features/device-mgt/org.wso2.carbon.device.mgt.basics.feature/src/main/resources/p2.inf b/features/device-mgt/org.wso2.carbon.device.mgt.basics.feature/src/main/resources/p2.inf
index 09ec420214c..d373520aa0a 100644
--- a/features/device-mgt/org.wso2.carbon.device.mgt.basics.feature/src/main/resources/p2.inf
+++ b/features/device-mgt/org.wso2.carbon.device.mgt.basics.feature/src/main/resources/p2.inf
@@ -1,4 +1,5 @@
 instructions.configure = \
+org.eclipse.equinox.p2.touchpoint.natives.copy(source:${installFolder}/../features/org.wso2.carbon.device.mgt.basics_${feature.version}/conf/datasources/cdm-datasources.xml,target:${installFolder}/../../conf/datasources/cdm-datasources.xml,overwrite:true);\
 org.eclipse.equinox.p2.touchpoint.natives.copy(source:${installFolder}/../features/org.wso2.carbon.device.mgt.basics_${feature.version}/conf/cdm-config.xml,target:${installFolder}/../../conf/cdm-config.xml,overwrite:true);\
 org.eclipse.equinox.p2.touchpoint.natives.copy(source:${installFolder}/../features/org.wso2.carbon.device.mgt.basics_${feature.version}/conf/mdm-ui-config.xml,target:${installFolder}/../../conf/mdm-ui-config.xml,overwrite:true);\
 org.eclipse.equinox.p2.touchpoint.natives.copy(source:${installFolder}/../features/org.wso2.carbon.device.mgt.basics_${feature.version}/conf/license-config.xml,target:${installFolder}/../../conf/etc/license-config.xml,overwrite:true);\