diff --git a/gns3server/modules/__init__.py b/gns3server/modules/__init__.py
index 4e2f51bb..25c1012f 100644
--- a/gns3server/modules/__init__.py
+++ b/gns3server/modules/__init__.py
@@ -18,5 +18,6 @@
 from .vpcs import VPCS
 from .virtualbox import VirtualBox
 from .dynamips import Dynamips
+from .iou import IOU
 
-MODULES = [VPCS, VirtualBox, Dynamips]
+MODULES = [VPCS, VirtualBox, Dynamips, IOU]
diff --git a/gns3server/modules/adapters/ethernet_adapter.py b/gns3server/modules/adapters/ethernet_adapter.py
index 9d3ee003..f1a06c63 100644
--- a/gns3server/modules/adapters/ethernet_adapter.py
+++ b/gns3server/modules/adapters/ethernet_adapter.py
@@ -29,4 +29,4 @@ class EthernetAdapter(Adapter):
 
     def __str__(self):
 
-        return "VPCS Ethernet adapter"
+        return "Ethernet adapter"
diff --git a/gns3server/modules/adapters/serial_adapter.py b/gns3server/modules/adapters/serial_adapter.py
new file mode 100644
index 00000000..5bb00dc1
--- /dev/null
+++ b/gns3server/modules/adapters/serial_adapter.py
@@ -0,0 +1,32 @@
+# -*- coding: utf-8 -*-
+#
+# Copyright (C) 2014 GNS3 Technologies Inc.
+#
+# This program is free software: you can redistribute it and/or modify
+# it under the terms of the GNU General Public License as published by
+# the Free Software Foundation, either version 3 of the License, or
+# (at your option) any later version.
+#
+# This program is distributed in the hope that it will be useful,
+# but WITHOUT ANY WARRANTY; without even the implied warranty of
+# MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+# GNU General Public License for more details.
+#
+# You should have received a copy of the GNU General Public License
+# along with this program.  If not, see <http://www.gnu.org/licenses/>.
+
+from .adapter import Adapter
+
+
+class SerialAdapter(Adapter):
+
+    """
+    VPCS Ethernet adapter.
+    """
+
+    def __init__(self):
+        Adapter.__init__(self, interfaces=1)
+
+    def __str__(self):
+
+        return "Serial adapter"
diff --git a/gns3server/modules/dynamips/dynamips_error.py b/gns3server/modules/dynamips/dynamips_error.py
index 58c306ee..15e20796 100644
--- a/gns3server/modules/dynamips/dynamips_error.py
+++ b/gns3server/modules/dynamips/dynamips_error.py
@@ -22,18 +22,4 @@ Custom exceptions for Dynamips module.
 
 class DynamipsError(Exception):
 
-    def __init__(self, message, original_exception=None):
-
-        Exception.__init__(self, message)
-        if isinstance(message, Exception):
-            message = str(message)
-        self._message = message
-        self._original_exception = original_exception
-
-    def __repr__(self):
-
-        return self._message
-
-    def __str__(self):
-
-        return self._message
+    pass
diff --git a/gns3server/modules/iou/__init__.py b/gns3server/modules/iou/__init__.py
new file mode 100644
index 00000000..c3ba15b4
--- /dev/null
+++ b/gns3server/modules/iou/__init__.py
@@ -0,0 +1,64 @@
+# -*- coding: utf-8 -*-
+#
+# Copyright (C) 2015 GNS3 Technologies Inc.
+#
+# This program is free software: you can redistribute it and/or modify
+# it under the terms of the GNU General Public License as published by
+# the Free Software Foundation, either version 3 of the License, or
+# (at your option) any later version.
+#
+# This program is distributed in the hope that it will be useful,
+# but WITHOUT ANY WARRANTY; without even the implied warranty of
+# MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+# GNU General Public License for more details.
+#
+# You should have received a copy of the GNU General Public License
+# along with this program.  If not, see <http://www.gnu.org/licenses/>.
+
+"""
+IOU server module.
+"""
+
+import asyncio
+
+from ..base_manager import BaseManager
+from .iou_error import IOUError
+from .iou_vm import IOUVM
+
+
+class IOU(BaseManager):
+    _VM_CLASS = IOUVM
+
+    def __init__(self):
+        super().__init__()
+        self._free_application_ids = list(range(1, 512))
+        self._used_application_ids = {}
+
+    @asyncio.coroutine
+    def create_vm(self, *args, **kwargs):
+
+        vm = yield from super().create_vm(*args, **kwargs)
+        try:
+            self._used_application_ids[vm.id] = self._free_application_ids.pop(0)
+        except IndexError:
+            raise IOUError("No mac address available")
+        return vm
+
+    @asyncio.coroutine
+    def delete_vm(self, vm_id, *args, **kwargs):
+
+        vm = self.get_vm(vm_id)
+        i = self._used_application_ids[vm_id]
+        self._free_application_ids.insert(0, i)
+        del self._used_application_ids[vm_id]
+        yield from super().delete_vm(vm_id, *args, **kwargs)
+
+    def get_application_id(self, vm_id):
+        """
+        Get an unique IOU mac id
+
+        :param vm_id: ID of the IOU VM
+        :returns: IOU MAC id
+        """
+
+        return self._used_application_ids.get(vm_id, 1)
diff --git a/gns3server/modules/iou/iou_error.py b/gns3server/modules/iou/iou_error.py
new file mode 100644
index 00000000..cd43bdb9
--- /dev/null
+++ b/gns3server/modules/iou/iou_error.py
@@ -0,0 +1,26 @@
+# -*- coding: utf-8 -*-
+#
+# Copyright (C) 2013 GNS3 Technologies Inc.
+#
+# This program is free software: you can redistribute it and/or modify
+# it under the terms of the GNU General Public License as published by
+# the Free Software Foundation, either version 3 of the License, or
+# (at your option) any later version.
+#
+# This program is distributed in the hope that it will be useful,
+# but WITHOUT ANY WARRANTY; without even the implied warranty of
+# MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+# GNU General Public License for more details.
+#
+# You should have received a copy of the GNU General Public License
+# along with this program.  If not, see <http://www.gnu.org/licenses/>.
+
+"""
+Custom exceptions for IOU module.
+"""
+
+from ..vm_error import VMError
+
+
+class IOUError(VMError):
+    pass
diff --git a/gns3server/modules/iou/iou_vm.py b/gns3server/modules/iou/iou_vm.py
new file mode 100644
index 00000000..5abf0b44
--- /dev/null
+++ b/gns3server/modules/iou/iou_vm.py
@@ -0,0 +1,460 @@
+# -*- coding: utf-8 -*-
+#
+# Copyright (C) 2015 GNS3 Technologies Inc.
+#
+# This program is free software: you can redistribute it and/or modify
+# it under the terms of the GNU General Public License as published by
+# the Free Software Foundation, either version 3 of the License, or
+# (at your option) any later version.
+#
+# This program is distributed in the hope that it will be useful,
+# but WITHOUT ANY WARRANTY; without even the implied warranty of
+# MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+# GNU General Public License for more details.
+#
+# You should have received a copy of the GNU General Public License
+# along with this program.  If not, see <http://www.gnu.org/licenses/>.
+
+"""
+IOU VM management (creates command line, processes, files etc.) in
+order to run an IOU instance.
+"""
+
+import os
+import sys
+import subprocess
+import signal
+import re
+import asyncio
+import shutil
+
+from pkg_resources import parse_version
+from .iou_error import IOUError
+from ..adapters.ethernet_adapter import EthernetAdapter
+from ..adapters.serial_adapter import SerialAdapter
+from ..base_vm import BaseVM
+
+
+import logging
+log = logging.getLogger(__name__)
+
+
+class IOUVM(BaseVM):
+    module_name = 'iou'
+
+    """
+    IOU vm implementation.
+
+    :param name: name of this IOU vm
+    :param vm_id: IOU instance identifier
+    :param project: Project instance
+    :param manager: parent VM Manager
+    :param console: TCP console port
+    """
+
+    def __init__(self, name, vm_id, project, manager, console=None):
+
+        super().__init__(name, vm_id, project, manager)
+
+        self._console = console
+        self._command = []
+        self._iouyap_process = None
+        self._iou_process = None
+        self._iou_stdout_file = ""
+        self._started = False
+        self._iou_path = None
+        self._iourc = None
+        self._ioucon_thread = None
+
+        # IOU settings
+        self._ethernet_adapters = [EthernetAdapter(), EthernetAdapter()]  # one adapter = 4 interfaces
+        self._serial_adapters = [SerialAdapter(), SerialAdapter()]  # one adapter = 4 interfaces
+        self._slots = self._ethernet_adapters + self._serial_adapters
+        self._use_default_iou_values = True  # for RAM & NVRAM values
+        self._nvram = 128  # Kilobytes
+        self._initial_config = ""
+        self._ram = 256  # Megabytes
+        self._l1_keepalives = False  # used to overcome the always-up Ethernet interfaces (not supported by all IOSes).
+
+        if self._console is not None:
+            self._console = self._manager.port_manager.reserve_console_port(self._console)
+        else:
+            self._console = self._manager.port_manager.get_free_console_port()
+
+    def close(self):
+
+        if self._console:
+            self._manager.port_manager.release_console_port(self._console)
+            self._console = None
+
+    @property
+    def iou_path(self):
+        """Path of the iou binary"""
+
+        return self._iou_path
+
+    @iou_path.setter
+    def iou_path(self, path):
+        """
+        Path of the iou binary
+
+        :params path: Path to the binary
+        """
+
+        self._iou_path = path
+        if not os.path.isfile(self._iou_path) or not os.path.exists(self._iou_path):
+            if os.path.islink(self._iou_path):
+                raise IOUError("IOU image '{}' linked to '{}' is not accessible".format(self._iou_path, os.path.realpath(self._iou_path)))
+            else:
+                raise IOUError("IOU image '{}' is not accessible".format(self._iou_path))
+
+        try:
+            with open(self._iou_path, "rb") as f:
+                # read the first 7 bytes of the file.
+                elf_header_start = f.read(7)
+        except OSError as e:
+            raise IOUError("Cannot read ELF header for IOU image '{}': {}".format(self._iou_path, e))
+
+        # IOU images must start with the ELF magic number, be 32-bit, little endian
+        # and have an ELF version of 1 normal IOS image are big endian!
+        if elf_header_start != b'\x7fELF\x01\x01\x01':
+            raise IOUError("'{}' is not a valid IOU image".format(self._iou_path))
+
+        if not os.access(self._iou_path, os.X_OK):
+            raise IOUError("IOU image '{}' is not executable".format(self._iou_path))
+
+    @property
+    def iourc(self):
+        """
+        Returns the path to the iourc file.
+        :returns: path to the iourc file
+        """
+
+        return self._iourc
+
+    @property
+    def use_default_iou_values(self):
+        """
+        Returns if this device uses the default IOU image values.
+        :returns: boolean
+        """
+
+        return self._use_default_iou_values
+
+    @use_default_iou_values.setter
+    def use_default_iou_values(self, state):
+        """
+        Sets if this device uses the default IOU image values.
+        :param state: boolean
+        """
+
+        self._use_default_iou_values = state
+        if state:
+            log.info("IOU {name} [id={id}]: uses the default IOU image values".format(name=self._name, id=self._id))
+        else:
+            log.info("IOU {name} [id={id}]: does not use the default IOU image values".format(name=self._name, id=self._id))
+
+    @iourc.setter
+    def iourc(self, iourc):
+        """
+        Sets the path to the iourc file.
+        :param iourc: path to the iourc file.
+        """
+
+        self._iourc = iourc
+        log.info("IOU {name} [id={id}]: iourc file path set to {path}".format(name=self._name,
+                                                                              id=self._id,
+                                                                              path=self._iourc))
+
+    def _check_requirements(self):
+        """
+        Check if IOUYAP is available
+        """
+        path = self.iouyap_path
+        if not path:
+            raise IOUError("No path to a IOU executable has been set")
+
+        if not os.path.isfile(path):
+            raise IOUError("IOU program '{}' is not accessible".format(path))
+
+        if not os.access(path, os.X_OK):
+            raise IOUError("IOU program '{}' is not executable".format(path))
+
+    def __json__(self):
+
+        return {"name": self.name,
+                "vm_id": self.id,
+                "console": self._console,
+                "project_id": self.project.id,
+                }
+
+    @property
+    def iouyap_path(self):
+        """
+        Returns the IOUYAP executable path.
+
+        :returns: path to IOUYAP
+        """
+
+        path = self._manager.config.get_section_config("IOU").get("iouyap_path", "iouyap")
+        if path == "iouyap":
+            path = shutil.which("iouyap")
+        return path
+
+    @property
+    def console(self):
+        """
+        Returns the console port of this IOU vm.
+
+        :returns: console port
+        """
+
+        return self._console
+
+    @console.setter
+    def console(self, console):
+        """
+        Change console port
+
+        :params console: Console port (integer)
+        """
+
+        if console == self._console:
+            return
+        if self._console:
+            self._manager.port_manager.release_console_port(self._console)
+        self._console = self._manager.port_manager.reserve_console_port(console)
+
+    @property
+    def application_id(self):
+        return self._manager.get_application_id(self.id)
+
+    #TODO: ASYNCIO
+    def _library_check(self):
+        """
+        Checks for missing shared library dependencies in the IOU image.
+        """
+
+        try:
+            output = subprocess.check_output(["ldd", self._iou_path])
+        except (FileNotFoundError, subprocess.SubprocessError) as e:
+            log.warn("could not determine the shared library dependencies for {}: {}".format(self._path, e))
+            return
+
+        p = re.compile("([\.\w]+)\s=>\s+not found")
+        missing_libs = p.findall(output.decode("utf-8"))
+        if missing_libs:
+            raise IOUError("The following shared library dependencies cannot be found for IOU image {}: {}".format(self._path,
+                                                                                                                   ", ".join(missing_libs)))
+
+    @asyncio.coroutine
+    def start(self):
+        """
+        Starts the IOU process.
+        """
+
+        self._check_requirements()
+        if not self.is_running():
+
+            # TODO: ASYNC
+            #self._library_check()
+
+            if not self._iourc or not os.path.isfile(self._iourc):
+                raise IOUError("A valid iourc file is necessary to start IOU")
+
+            iouyap_path = self.iouyap_path
+            if not iouyap_path or not os.path.isfile(iouyap_path):
+                raise IOUError("iouyap is necessary to start IOU")
+
+            self._create_netmap_config()
+            # created a environment variable pointing to the iourc file.
+            env = os.environ.copy()
+            env["IOURC"] = self._iourc
+            self._command = self._build_command()
+            try:
+                log.info("Starting IOU: {}".format(self._command))
+                self._iou_stdout_file = os.path.join(self.working_dir, "iou.log")
+                log.info("Logging to {}".format(self._iou_stdout_file))
+                with open(self._iou_stdout_file, "w") as fd:
+                    self._iou_process = yield from asyncio.create_subprocess_exec(self._command,
+                                                                              stdout=fd,
+                                                                              stderr=subprocess.STDOUT,
+                                                                              cwd=self.working_dir,
+                                                                             env=env)
+                log.info("IOU instance {} started PID={}".format(self._id, self._iou_process.pid))
+                self._started = True
+            except FileNotFoundError as e:
+                raise IOUError("could not start IOU: {}: 32-bit binary support is probably not installed".format(e))
+            except (OSError, subprocess.SubprocessError) as e:
+                iou_stdout = self.read_iou_stdout()
+                log.error("could not start IOU {}: {}\n{}".format(self._iou_path, e, iou_stdout))
+                raise IOUError("could not start IOU {}: {}\n{}".format(self._iou_path, e, iou_stdout))
+
+            # start console support
+            #self._start_ioucon()
+            # connections support
+            #self._start_iouyap()
+
+
+    @asyncio.coroutine
+    def stop(self):
+        """
+        Stops the IOU process.
+        """
+
+        # stop console support
+        if self._ioucon_thread:
+            self._ioucon_thread_stop_event.set()
+            if self._ioucon_thread.is_alive():
+                self._ioucon_thread.join(timeout=3.0)  # wait for the thread to free the console port
+            self._ioucon_thread = None
+
+        if self.is_running():
+            self._terminate_process()
+            try:
+                yield from asyncio.wait_for(self._iou_process.wait(), timeout=3)
+            except asyncio.TimeoutError:
+                self._iou_process.kill()
+                if self._iou_process.returncode is None:
+                    log.warn("IOU process {} is still running".format(self._iou_process.pid))
+
+            self._iou_process = None
+            self._started = False
+
+    def _terminate_process(self):
+        """Terminate the process if running"""
+
+        if self._iou_process:
+            log.info("Stopping IOU instance {} PID={}".format(self.name, self._iou_process.pid))
+            try:
+                self._iou_process.terminate()
+            # Sometime the process can already be dead when we garbage collect
+            except ProcessLookupError:
+                pass
+
+    @asyncio.coroutine
+    def reload(self):
+        """
+        Reload the IOU process. (Stop / Start)
+        """
+
+        yield from self.stop()
+        yield from self.start()
+
+    def is_running(self):
+        """
+        Checks if the IOU process is running
+
+        :returns: True or False
+        """
+
+        if self._iou_process:
+            return True
+        return False
+
+    def _create_netmap_config(self):
+        """
+        Creates the NETMAP file.
+        """
+
+        netmap_path = os.path.join(self.working_dir, "NETMAP")
+        try:
+            with open(netmap_path, "w") as f:
+                for bay in range(0, 16):
+                    for unit in range(0, 4):
+                        f.write("{iouyap_id}:{bay}/{unit}{iou_id:>5d}:{bay}/{unit}\n".format(iouyap_id=str(self.application_id + 512),
+                                                                                             bay=bay,
+                                                                                             unit=unit,
+                                                                                             iou_id=self.application_id))
+            log.info("IOU {name} [id={id}]: NETMAP file created".format(name=self._name,
+                                                                        id=self._id))
+        except OSError as e:
+            raise IOUError("Could not create {}: {}".format(netmap_path, e))
+
+    def _build_command(self):
+        """
+        Command to start the IOU process.
+        (to be passed to subprocess.Popen())
+        IOU command line:
+        Usage: <image> [options] <application id>
+        <image>: unix-js-m | unix-is-m | unix-i-m | ...
+        <application id>: instance identifier (0 < id <= 1024)
+        Options:
+        -e <n>        Number of Ethernet interfaces (default 2)
+        -s <n>        Number of Serial interfaces (default 2)
+        -n <n>        Size of nvram in Kb (default 64KB)
+        -b <string>   IOS debug string
+        -c <name>     Configuration file name
+        -d            Generate debug information
+        -t            Netio message trace
+        -q            Suppress informational messages
+        -h            Display this help
+        -C            Turn off use of host clock
+        -m <n>        Megabytes of router memory (default 256MB)
+        -L            Disable local console, use remote console
+        -l            Enable Layer 1 keepalive messages
+        -u <n>        UDP port base for distributed networks
+        -R            Ignore options from the IOURC file
+        -U            Disable unix: file system location
+        -W            Disable watchdog timer
+        -N            Ignore the NETMAP file
+        """
+
+        command = [self._iou_path]
+        if len(self._ethernet_adapters) != 2:
+            command.extend(["-e", str(len(self._ethernet_adapters))])
+        if len(self._serial_adapters) != 2:
+            command.extend(["-s", str(len(self._serial_adapters))])
+        if not self.use_default_iou_values:
+            command.extend(["-n", str(self._nvram)])
+            command.extend(["-m", str(self._ram)])
+        command.extend(["-L"])  # disable local console, use remote console
+        if self._initial_config:
+            command.extend(["-c", self._initial_config])
+        if self._l1_keepalives:
+            self._enable_l1_keepalives(command)
+        command.extend([str(self.application_id)])
+        return command
+
+    def read_iou_stdout(self):
+        """
+        Reads the standard output of the IOU process.
+        Only use when the process has been stopped or has crashed.
+        """
+
+        output = ""
+        if self._iou_stdout_file:
+            try:
+                with open(self._iou_stdout_file, errors="replace") as file:
+                    output = file.read()
+            except OSError as e:
+                log.warn("could not read {}: {}".format(self._iou_stdout_file, e))
+        return output
+
+    def read_iouyap_stdout(self):
+        """
+        Reads the standard output of the iouyap process.
+        Only use when the process has been stopped or has crashed.
+        """
+
+        output = ""
+        if self._iouyap_stdout_file:
+            try:
+                with open(self._iouyap_stdout_file, errors="replace") as file:
+                    output = file.read()
+            except OSError as e:
+                log.warn("could not read {}: {}".format(self._iouyap_stdout_file, e))
+        return output
+
+    def _start_ioucon(self):
+        """
+        Starts ioucon thread (for console connections).
+        """
+
+        if not self._ioucon_thread:
+            telnet_server = "{}:{}".format(self._console_host, self.console)
+            log.info("Starting ioucon for IOU instance {} to accept Telnet connections on {}".format(self._name, telnet_server))
+            args = argparse.Namespace(appl_id=str(self.application_id), debug=False, escape='^^', telnet_limit=0, telnet_server=telnet_server)
+            self._ioucon_thread_stop_event = threading.Event()
+            self._ioucon_thread = threading.Thread(target=start_ioucon, args=(args, self._ioucon_thread_stop_event))
+            self._ioucon_thread.start()
diff --git a/gns3server/modules/virtualbox/virtualbox_error.py b/gns3server/modules/virtualbox/virtualbox_error.py
index ec05bfb6..df481c21 100644
--- a/gns3server/modules/virtualbox/virtualbox_error.py
+++ b/gns3server/modules/virtualbox/virtualbox_error.py
@@ -24,18 +24,4 @@ from ..vm_error import VMError
 
 class VirtualBoxError(VMError):
 
-    def __init__(self, message, original_exception=None):
-
-        Exception.__init__(self, message)
-        if isinstance(message, Exception):
-            message = str(message)
-        self._message = message
-        self._original_exception = original_exception
-
-    def __repr__(self):
-
-        return self._message
-
-    def __str__(self):
-
-        return self._message
+    pass
diff --git a/gns3server/modules/vm_error.py b/gns3server/modules/vm_error.py
index d7b71e14..55cfc4cf 100644
--- a/gns3server/modules/vm_error.py
+++ b/gns3server/modules/vm_error.py
@@ -17,4 +17,19 @@
 
 
 class VMError(Exception):
-    pass
+
+    def __init__(self, message, original_exception=None):
+
+        Exception.__init__(self, message)
+        if isinstance(message, Exception):
+            message = str(message)
+        self._message = message
+        self._original_exception = original_exception
+
+    def __repr__(self):
+
+        return self._message
+
+    def __str__(self):
+
+        return self._message
diff --git a/gns3server/modules/vpcs/vpcs_error.py b/gns3server/modules/vpcs/vpcs_error.py
index f32afdaa..b8e99d4b 100644
--- a/gns3server/modules/vpcs/vpcs_error.py
+++ b/gns3server/modules/vpcs/vpcs_error.py
@@ -24,18 +24,4 @@ from ..vm_error import VMError
 
 class VPCSError(VMError):
 
-    def __init__(self, message, original_exception=None):
-
-        Exception.__init__(self, message)
-        if isinstance(message, Exception):
-            message = str(message)
-        self._message = message
-        self._original_exception = original_exception
-
-    def __repr__(self):
-
-        return self._message
-
-    def __str__(self):
-
-        return self._message
+    pass
diff --git a/tests/modules/iou/test_iou_manager.py b/tests/modules/iou/test_iou_manager.py
new file mode 100644
index 00000000..7817a297
--- /dev/null
+++ b/tests/modules/iou/test_iou_manager.py
@@ -0,0 +1,73 @@
+# -*- coding: utf-8 -*-
+#
+# Copyright (C) 2015 GNS3 Technologies Inc.
+#
+# This program is free software: you can redistribute it and/or modify
+# it under the terms of the GNU General Public License as published by
+# the Free Software Foundation, either version 3 of the License, or
+# (at your option) any later version.
+#
+# This program is distributed in the hope that it will be useful,
+# but WITHOUT ANY WARRANTY; without even the implied warranty of
+# MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+# GNU General Public License for more details.
+#
+# You should have received a copy of the GNU General Public License
+# along with this program.  If not, see <http://www.gnu.org/licenses/>.
+
+
+import pytest
+import uuid
+
+
+from gns3server.modules.iou import IOU
+from gns3server.modules.iou.iou_error import IOUError
+from gns3server.modules.project_manager import ProjectManager
+
+
+def test_get_application_id(loop, project, port_manager):
+    # Cleanup the IOU object
+    IOU._instance = None
+    iou = IOU.instance()
+    iou.port_manager = port_manager
+    vm1_id = str(uuid.uuid4())
+    vm2_id = str(uuid.uuid4())
+    vm3_id = str(uuid.uuid4())
+    loop.run_until_complete(iou.create_vm("PC 1", project.id, vm1_id))
+    loop.run_until_complete(iou.create_vm("PC 2", project.id, vm2_id))
+    assert iou.get_application_id(vm1_id) == 1
+    assert iou.get_application_id(vm1_id) == 1
+    assert iou.get_application_id(vm2_id) == 2
+    loop.run_until_complete(iou.delete_vm(vm1_id))
+    loop.run_until_complete(iou.create_vm("PC 3", project.id, vm3_id))
+    assert iou.get_application_id(vm3_id) == 1
+
+
+def test_get_application_id_multiple_project(loop, port_manager):
+    # Cleanup the IOU object
+    IOU._instance = None
+    iou = IOU.instance()
+    iou.port_manager = port_manager
+    vm1_id = str(uuid.uuid4())
+    vm2_id = str(uuid.uuid4())
+    vm3_id = str(uuid.uuid4())
+    project1 = ProjectManager.instance().create_project()
+    project2 = ProjectManager.instance().create_project()
+    loop.run_until_complete(iou.create_vm("PC 1", project1.id, vm1_id))
+    loop.run_until_complete(iou.create_vm("PC 2", project1.id, vm2_id))
+    loop.run_until_complete(iou.create_vm("PC 2", project2.id, vm3_id))
+    assert iou.get_application_id(vm1_id) == 1
+    assert iou.get_application_id(vm2_id) == 2
+    assert iou.get_application_id(vm3_id) == 3
+
+
+def test_get_application_id_no_id_available(loop, project, port_manager):
+    # Cleanup the IOU object
+    IOU._instance = None
+    iou = IOU.instance()
+    iou.port_manager = port_manager
+    with pytest.raises(IOUError):
+        for i in range(1, 513):
+            vm_id = str(uuid.uuid4())
+            loop.run_until_complete(iou.create_vm("PC {}".format(i), project.id, vm_id))
+            assert iou.get_application_id(vm_id) == i
diff --git a/tests/modules/iou/test_iou_vm.py b/tests/modules/iou/test_iou_vm.py
new file mode 100644
index 00000000..5f5d4093
--- /dev/null
+++ b/tests/modules/iou/test_iou_vm.py
@@ -0,0 +1,164 @@
+# -*- coding: utf-8 -*-
+#
+# Copyright (C) 2015 GNS3 Technologies Inc.
+#
+# This program is free software: you can redistribute it and/or modify
+# it under the terms of the GNU General Public License as published by
+# the Free Software Foundation, either version 3 of the License, or
+# (at your option) any later version.
+#
+# This program is distributed in the hope that it will be useful,
+# but WITHOUT ANY WARRANTY; without even the implied warranty of
+# MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+# GNU General Public License for more details.
+#
+# You should have received a copy of the GNU General Public License
+# along with this program.  If not, see <http://www.gnu.org/licenses/>.
+
+import pytest
+import aiohttp
+import asyncio
+import os
+import stat
+from tests.utils import asyncio_patch
+
+
+from unittest.mock import patch, MagicMock
+from gns3server.modules.iou.iou_vm import IOUVM
+from gns3server.modules.iou.iou_error import IOUError
+from gns3server.modules.iou import IOU
+
+
+@pytest.fixture(scope="module")
+def manager(port_manager):
+    m = IOU.instance()
+    m.port_manager = port_manager
+    return m
+
+
+@pytest.fixture(scope="function")
+def vm(project, manager, tmpdir, fake_iou_bin):
+    fake_file = str(tmpdir / "iourc")
+    with open(fake_file, "w+") as f:
+        f.write("1")
+
+    vm = IOUVM("test", "00010203-0405-0607-0809-0a0b0c0d0e0f", project, manager)
+    config = manager.config.get_section_config("IOU")
+    config["iouyap_path"] = fake_file
+    manager.config.set_section_config("IOU", config)
+
+    vm.iou_path = fake_iou_bin
+    vm.iourc = fake_file
+    return vm
+
+
+@pytest.fixture
+def fake_iou_bin(tmpdir):
+    """Create a fake IOU image on disk"""
+
+    path = str(tmpdir / "iou.bin")
+    with open(path, "w+") as f:
+        f.write('\x7fELF\x01\x01\x01')
+    os.chmod(path, stat.S_IREAD | stat.S_IEXEC)
+    return path
+
+
+def test_vm(project, manager):
+    vm = IOUVM("test", "00010203-0405-0607-0809-0a0b0c0d0e0f", project, manager)
+    assert vm.name == "test"
+    assert vm.id == "00010203-0405-0607-0809-0a0b0c0d0e0f"
+
+
+@patch("gns3server.config.Config.get_section_config", return_value={"iouyap_path": "/bin/test_fake"})
+def test_vm_invalid_iouyap_path(project, manager, loop):
+    with pytest.raises(IOUError):
+        vm = IOUVM("test", "00010203-0405-0607-0809-0a0b0c0d0e0e", project, manager)
+        loop.run_until_complete(asyncio.async(vm.start()))
+
+
+def test_start(loop, vm):
+    with asyncio_patch("gns3server.modules.iou.iou_vm.IOUVM._check_requirements", return_value=True):
+        with asyncio_patch("asyncio.create_subprocess_exec", return_value=MagicMock()):
+            loop.run_until_complete(asyncio.async(vm.start()))
+            assert vm.is_running()
+
+
+def test_stop(loop, vm):
+    process = MagicMock()
+
+    # Wait process kill success
+    future = asyncio.Future()
+    future.set_result(True)
+    process.wait.return_value = future
+
+    with asyncio_patch("gns3server.modules.iou.iou_vm.IOUVM._check_requirements", return_value=True):
+        with asyncio_patch("asyncio.create_subprocess_exec", return_value=process):
+            loop.run_until_complete(asyncio.async(vm.start()))
+            assert vm.is_running()
+            loop.run_until_complete(asyncio.async(vm.stop()))
+            assert vm.is_running() is False
+            process.terminate.assert_called_with()
+
+
+def test_reload(loop, vm, fake_iou_bin):
+    process = MagicMock()
+
+    # Wait process kill success
+    future = asyncio.Future()
+    future.set_result(True)
+    process.wait.return_value = future
+
+    with asyncio_patch("gns3server.modules.iou.iou_vm.IOUVM._check_requirements", return_value=True):
+        with asyncio_patch("asyncio.create_subprocess_exec", return_value=process):
+            loop.run_until_complete(asyncio.async(vm.start()))
+            assert vm.is_running()
+            loop.run_until_complete(asyncio.async(vm.reload()))
+            assert vm.is_running() is True
+            process.terminate.assert_called_with()
+
+
+def test_close(vm, port_manager):
+    with asyncio_patch("gns3server.modules.iou.iou_vm.IOUVM._check_requirements", return_value=True):
+        with asyncio_patch("asyncio.create_subprocess_exec", return_value=MagicMock()):
+            vm.start()
+            port = vm.console
+            vm.close()
+            # Raise an exception if the port is not free
+            port_manager.reserve_console_port(port)
+            assert vm.is_running() is False
+
+
+def test_iou_path(vm, fake_iou_bin):
+
+    vm.iou_path = fake_iou_bin
+    assert vm.iou_path == fake_iou_bin
+
+
+def test_path_invalid_bin(vm, tmpdir):
+
+    iou_path = str(tmpdir / "test.bin")
+    with pytest.raises(IOUError):
+        vm.iou_path = iou_path
+
+    with open(iou_path, "w+") as f:
+        f.write("BUG")
+
+    with pytest.raises(IOUError):
+        vm.iou_path = iou_path
+
+
+def test_create_netmap_config(vm):
+
+    vm._create_netmap_config()
+    netmap_path = os.path.join(vm.working_dir, "NETMAP")
+
+    with open(netmap_path) as f:
+        content = f.read()
+
+    assert "513:0/0    1:0/0" in content
+    assert "513:15/3    1:15/3" in content
+
+
+def test_build_command(vm):
+
+    assert vm._build_command() == [vm.iou_path, '-L', str(vm.application_id)]