diff --git a/application/src/main/resources/thingsboard.yml b/application/src/main/resources/thingsboard.yml
index 7e2a7735ff..e57018d14a 100644
--- a/application/src/main/resources/thingsboard.yml
+++ b/application/src/main/resources/thingsboard.yml
@@ -233,7 +233,7 @@ spring:
   jpa:
     hibernate:
       ddl-auto: "validate"
-    database-platform: "org.hibernate.dialect.HSQLDialect"
+    database-platform: "${SPRING_JPA_DATABASE_PLATFORM:org.hibernate.dialect.HSQLDialect}"
   datasource:
     driverClassName: "${SPRING_DRIVER_CLASS_NAME:org.hsqldb.jdbc.JDBCDriver}"
     url: "${SPRING_DATASOURCE_URL:jdbc:hsqldb:file:${SQL_DATA_FOLDER:/tmp}/thingsboardDb;sql.enforce_size=false}"
@@ -250,7 +250,7 @@ spring:
 #  jpa:
 #    hibernate:
 #      ddl-auto: "validate"
-#    database-platform: "org.hibernate.dialect.PostgreSQLDialect"
+#    database-platform: "${SPRING_JPA_DATABASE_PLATFORM:org.hibernate.dialect.PostgreSQLDialect}"
 #  datasource:
 #    driverClassName: "${SPRING_DRIVER_CLASS_NAME:org.postgresql.Driver}"
 #    url: "${SPRING_DATASOURCE_URL:jdbc:postgresql://localhost:5432/thingsboard}"
diff --git a/docker/.env b/docker/.env
index ff77f417be..e3306324d4 100644
--- a/docker/.env
+++ b/docker/.env
@@ -1,15 +1,13 @@
 # cassandra environment variables
 CASSANDRA_DATA_DIR=/home/docker/cassandra_volume
-CASSANDRA_URL=cassandra
 
 # postgres environment variables
 POSTGRES_DATA_DIR=/home/docker/postgres_volume
 POSTGRES_DB=thingsboard
-POSTGRES_USER=postgres
-POSTGRES_PASSWORD=postgres
-POSTGRES_URL=postgres
+
+# hsqldb environment variables
+HSQLDB_DATA_DIR=/home/docker/hsqldb_volume
 
 # environment variables for schema init and insert system and demo data
-CREATE_SCHEMA=true
-ADD_SYSTEM_DATA=false
+ADD_SCHEMA_AND_SYSTEM_DATA=false
 ADD_DEMO_DATA=false
\ No newline at end of file
diff --git a/docker/docker-compose.yml b/docker/docker-compose.yml
index 988a2db6d0..7cbea951e5 100644
--- a/docker/docker-compose.yml
+++ b/docker/docker-compose.yml
@@ -25,15 +25,12 @@ services:
       - "5683:5683/udp"
     env_file:
       - tb.env
-    entrypoint: /run-application.sh
-  tb-cassandra-schema:
-    image: "thingsboard/tb-cassandra-schema:1.2.4"
     environment:
-      - CREATE_SCHEMA=${CREATE_SCHEMA}
-      - ADD_SYSTEM_DATA=${ADD_SYSTEM_DATA}
+      - ADD_SCHEMA_AND_SYSTEM_DATA=${ADD_SCHEMA_AND_SYSTEM_DATA}
       - ADD_DEMO_DATA=${ADD_DEMO_DATA}
-      - CASSANDRA_URL=${CASSANDRA_URL}
-    entrypoint: /install-schema.sh
+    volumes:
+      - "${HSQLDB_DATA_DIR}:/usr/share/thingsboard/data/sql"
+    entrypoint: /run-application.sh
   cassandra:
     image: "cassandra:3.9"
     ports:
@@ -52,18 +49,5 @@ services:
     - "5432"
     environment:
       - POSTGRES_DB=${POSTGRES_DB}
-      - POSTGRES_USER=${POSTGRES_USER}
-      - POSTGRES_PASSWORD=${POSTGRES_PASSWORD}
     volumes:
       - "${POSTGRES_DATA_DIR}:/var/lib/postgresql/data"
-  tb-postgres-schema:
-    image: "thingsboard/tb-postgres-schema:1.2.4"
-    environment:
-      - POSTGRES_URL=${POSTGRES_URL}
-      - POSTGRES_DB=${POSTGRES_DB}
-      - POSTGRES_USER=${POSTGRES_USER}
-      - POSTGRES_PASSWORD=${POSTGRES_PASSWORD}
-      - CREATE_SCHEMA=${CREATE_SCHEMA}
-      - ADD_SYSTEM_DATA=${ADD_SYSTEM_DATA}
-      - ADD_DEMO_DATA=${ADD_DEMO_DATA}
-    entrypoint: /install-schema.sh
\ No newline at end of file
diff --git a/docker/cassandra/cassandra.yaml b/docker/k8s/cassandra.yaml
similarity index 100%
rename from docker/cassandra/cassandra.yaml
rename to docker/k8s/cassandra.yaml
diff --git a/docker/common/common.yaml b/docker/k8s/common.yaml
similarity index 100%
rename from docker/common/common.yaml
rename to docker/k8s/common.yaml
diff --git a/docker/tb/tb.yaml b/docker/k8s/tb.yaml
similarity index 100%
rename from docker/tb/tb.yaml
rename to docker/k8s/tb.yaml
diff --git a/docker/zookeeper/zookeeper.yaml b/docker/k8s/zookeeper.yaml
similarity index 100%
rename from docker/zookeeper/zookeeper.yaml
rename to docker/k8s/zookeeper.yaml
diff --git a/docker/tb-cassandra-schema/Dockerfile b/docker/tb-cassandra-schema/Dockerfile
deleted file mode 100644
index e78042da75..0000000000
--- a/docker/tb-cassandra-schema/Dockerfile
+++ /dev/null
@@ -1,28 +0,0 @@
-#
-# Copyright © 2016-2017 The Thingsboard Authors
-#
-# Licensed 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.
-#
-
-FROM cassandra:3.9
-
-ADD install-schema.sh /install-schema.sh
-
-RUN apt-get update \
-        && apt-get install -y nmap \
-        && chmod +x /install-schema.sh
-
-ADD schema.cql /schema.cql
-ADD demo-data.cql /demo-data.cql
-ADD system-data.cql /system-data.cql
-
diff --git a/docker/tb-cassandra-schema/Makefile b/docker/tb-cassandra-schema/Makefile
deleted file mode 100644
index 72af77b756..0000000000
--- a/docker/tb-cassandra-schema/Makefile
+++ /dev/null
@@ -1,14 +0,0 @@
-VERSION=1.2.4
-PROJECT=thingsboard
-APP=tb-cassandra-schema
-
-build:
-	cp ../../dao/src/main/resources/cassandra/schema.cql .
-	cp ../../dao/src/main/resources/cassandra/demo-data.cql .
-	cp ../../dao/src/main/resources/cassandra/system-data.cql .
-	docker build --pull -t ${PROJECT}/${APP}:${VERSION} -t ${PROJECT}/${APP}:latest .
-	rm schema.cql demo-data.cql system-data.cql
-
-push: build
-	docker push ${PROJECT}/${APP}:${VERSION}
-	docker push ${PROJECT}/${APP}:latest
diff --git a/docker/tb-cassandra-schema/install-schema.sh b/docker/tb-cassandra-schema/install-schema.sh
deleted file mode 100644
index 0845a73a47..0000000000
--- a/docker/tb-cassandra-schema/install-schema.sh
+++ /dev/null
@@ -1,53 +0,0 @@
-#!/bin/bash
-#
-# Copyright © 2016-2017 The Thingsboard Authors
-#
-# Licensed 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.
-#
-
-
-until nmap $CASSANDRA_URL -p 9042 | grep "9042/tcp open"
-do
-  echo "Wait for $CASSANDRA_URL..."
-  sleep 10
-done
-
-if [ "$CREATE_SCHEMA" == "true" ]; then
-    echo "Creating 'Thingsboard' keyspace..."
-    cqlsh $CASSANDRA_URL -f /schema.cql
-    if [ "$?" -eq 0 ]; then
-        echo "'Thingsboard' keyspace was successfully created!"
-    else
-        echo "There were issues while creating 'Thingsboard' keyspace!"
-    fi
-fi
-
-if [ "$ADD_SYSTEM_DATA" == "true" ]; then
-    echo "Adding system data..."
-    cqlsh $CASSANDRA_URL -f /system-data.cql
-    if [ "$?" -eq 0 ]; then
-        echo "System data was successfully added!"
-    else
-        echo "There were issues while adding System data!"
-    fi
-fi
-
-if [ "$ADD_DEMO_DATA" == "true" ]; then
-    echo "Adding demo data..."
-    cqlsh $CASSANDRA_URL -f /demo-data.cql
-    if [ "$?" -eq 0 ]; then
-        echo "Demo data was successfully added!"
-    else
-        echo "There were issues while adding Demo data!"
-    fi
-fi
diff --git a/docker/tb-cassandra-schema/tb-cassandra-schema.yaml b/docker/tb-cassandra-schema/tb-cassandra-schema.yaml
deleted file mode 100644
index b86cb90dde..0000000000
--- a/docker/tb-cassandra-schema/tb-cassandra-schema.yaml
+++ /dev/null
@@ -1,39 +0,0 @@
-#
-# Copyright © 2016-2017 The Thingsboard Authors
-#
-# Licensed 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.
-#
-
-apiVersion: v1
-kind: Pod
-metadata:
-  name: tb-cassandra-schema
-spec:
-  containers:
-  - name: tb-cassandra-schema
-    imagePullPolicy: Always
-    image: thingsboard/tb-cassandra-schema:1.2.4
-    env:
-    - name: CREATE_SCHEMA
-      value: "true"
-    - name: ADD_SYSTEM_DATA
-      value: "true"
-    - name : ADD_DEMO_DATA
-      value: "true"
-    - name : CASSANDRA_URL
-      value: "cassandra-headless"
-    command:
-    - sh
-    - -c
-    - /install-schema.sh
-  restartPolicy: Never
\ No newline at end of file
diff --git a/docker/tb-postgres-schema/Dockerfile b/docker/tb-postgres-schema/Dockerfile
deleted file mode 100644
index b14356f0f8..0000000000
--- a/docker/tb-postgres-schema/Dockerfile
+++ /dev/null
@@ -1,27 +0,0 @@
-#
-# Copyright © 2016-2017 The Thingsboard Authors
-#
-# Licensed 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.
-#
-
-FROM postgres:9.6
-
-ADD install-schema.sh /install-schema.sh
-
-RUN apt-get update \
-        && apt-get install -y nmap \
-        && chmod +x /install-schema.sh
-
-ADD schema.sql /schema.sql
-ADD system-data.sql /system-data.sql
-ADD demo-data.sql /demo-data.sql
\ No newline at end of file
diff --git a/docker/tb-postgres-schema/Makefile b/docker/tb-postgres-schema/Makefile
deleted file mode 100644
index dc7909b863..0000000000
--- a/docker/tb-postgres-schema/Makefile
+++ /dev/null
@@ -1,14 +0,0 @@
-VERSION=1.2.4
-PROJECT=thingsboard
-APP=tb-postgres-schema
-
-build:
-	cp ../../dao/src/main/resources/postgres/schema.sql .
-	cp ../../dao/src/main/resources/postgres/demo-data.sql .
-	cp ../../dao/src/main/resources/postgres/system-data.sql .
-	docker build --pull -t ${PROJECT}/${APP}:${VERSION} -t ${PROJECT}/${APP}:latest .
-	rm schema.sql demo-data.sql system-data.sql
-
-push: build
-	docker push ${PROJECT}/${APP}:${VERSION}
-	docker push ${PROJECT}/${APP}:latest
diff --git a/docker/tb-postgres-schema/install-schema.sh b/docker/tb-postgres-schema/install-schema.sh
deleted file mode 100644
index 40af3700f3..0000000000
--- a/docker/tb-postgres-schema/install-schema.sh
+++ /dev/null
@@ -1,52 +0,0 @@
-#!/bin/bash
-#
-# Copyright © 2016-2017 The Thingsboard Authors
-#
-# Licensed 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.
-#
-
-until nmap $POSTGRES_URL -p 5432 | grep "5432/tcp open"
-do
-  echo "Waiting for $POSTGRES_URL..."
-  sleep 10
-done
-
-if [ "$CREATE_SCHEMA" == "true" ]; then
-    echo "Creating 'Thingsboard' database schema..."
-    PGPASSWORD="$POSTGRES_PASSWORD" psql -h "$POSTGRES_URL" -v ON_ERROR_STOP=1 --username "$POSTGRES_USER" --dbname "$POSTGRES_DB" -f /schema.sql
-    if [ "$?" -eq 0 ]; then
-        echo "'Thingsboard' database schema was successfully created!"
-    else
-        echo "There were issues while creating 'Thingsboard' database schema!"
-    fi
-fi
-
-if [ "$ADD_SYSTEM_DATA" == "true" ]; then
-    echo "Adding system data..."
-    PGPASSWORD="$POSTGRES_PASSWORD" psql -h "$POSTGRES_URL" -v ON_ERROR_STOP=1 --username "$POSTGRES_USER" --dbname "$POSTGRES_DB" -f /system-data.sql
-    if [ "$?" -eq 0 ]; then
-        echo "System data was successfully added!"
-    else
-        echo "There were issues while adding System data!"
-    fi
-fi
-
-if [ "$ADD_DEMO_DATA" == "true" ]; then
-    echo "Adding demo data..."
-    PGPASSWORD="$POSTGRES_PASSWORD" psql -h "$POSTGRES_URL" -v ON_ERROR_STOP=1 --username "$POSTGRES_USER" --dbname "$POSTGRES_DB" -f /demo-data.sql
-    if [ "$?" -eq 0 ]; then
-        echo "Demo data was successfully added!"
-    else
-        echo "There were issues while adding Demo data!"
-    fi
-fi
diff --git a/docker/tb.env b/docker/tb.env
index 7947c23d43..c5d77c0ad1 100644
--- a/docker/tb.env
+++ b/docker/tb.env
@@ -1,9 +1,21 @@
 #Thingsboard server configuration
-
-TB_CASSANDRA_SCHEMA_URL=tb-cassandra-schema
-CASSANDRA_URL=cassandra:9042
-ZOOKEEPER_URL=zk:2181
 MQTT_BIND_ADDRESS=0.0.0.0
 MQTT_BIND_PORT=1883
 COAP_BIND_ADDRESS=0.0.0.0
-COAP_BIND_PORT=5683
\ No newline at end of file
+COAP_BIND_PORT=5683
+
+# zk config
+ZOOKEEPER_URL=zk:2181
+
+# type of database to use: sql[DEFAULT] or cassandra
+DATABASE_TYPE=sql
+
+# cassandra db config
+CASSANDRA_URL=cassandra:9042
+
+# postgres db config
+# SPRING_JPA_DATABASE_PLATFORM=org.hibernate.dialect.PostgreSQLDialect
+# SPRING_DRIVER_CLASS_NAME=org.postgresql.Driver
+# SPRING_DATASOURCE_URL=jdbc:postgresql://postgres:5432/thingsboard
+# SPRING_DATASOURCE_USERNAME=postgres
+# SPRING_DATASOURCE_PASSWORD=postgres
diff --git a/docker/tb/Dockerfile b/docker/tb/Dockerfile
index b2a3da6e06..993e7f3231 100644
--- a/docker/tb/Dockerfile
+++ b/docker/tb/Dockerfile
@@ -19,4 +19,6 @@ FROM openjdk:8-jre
 ADD run-application.sh /run-application.sh
 ADD thingsboard.deb /thingsboard.deb
 
-RUN chmod +x /run-application.sh
+RUN apt-get update \
+        && apt-get install -y nmap \
+        && chmod +x /run-application.sh
diff --git a/docker/tb/run-application.sh b/docker/tb/run-application.sh
index 4824133a28..274e255bdb 100755
--- a/docker/tb/run-application.sh
+++ b/docker/tb/run-application.sh
@@ -18,18 +18,34 @@
 
 dpkg -i /thingsboard.deb
 
-reachable=0
-while [ $reachable -eq 0 ];
-do
-  echo "$TB_CASSANDRA_SCHEMA_URL container is still in progress. waiting until it completed..."
-  sleep 3
-  ping -q -c 1 $TB_CASSANDRA_SCHEMA_URL > /dev/null 2>&1
-  if [ "$?" -ne 0 ];
-  then
-    echo "$TB_CASSANDRA_SCHEMA_URL container completed!"
-    reachable=1
-  fi
-done
+if [ "$DATABASE_TYPE" == "cassandra" ]; then
+    until nmap cassandra -p 9042 | grep "9042/tcp open"
+    do
+      echo "Wait for cassandra db to start..."
+      sleep 10
+    done
+fi
+
+if [ "$DATABASE_TYPE" == "sql" ]; then
+    if [ "$SPRING_DRIVER_CLASS_NAME" == "org.postgresql.Driver" ]; then
+        until nmap postgres -p 5432 | grep "5432/tcp open"
+        do
+          echo "Waiting for postgres db to start..."
+          sleep 10
+        done
+    fi
+fi
+
+if [ "$ADD_SCHEMA_AND_SYSTEM_DATA" == "true" ]; then
+    echo "Creating 'Thingsboard' schema and system data..."
+    if [ "$ADD_DEMO_DATA" == "true" ]; then
+        echo "Adding demo data..."
+        /usr/share/thingsboard/bin/install/install.sh --loadDemo
+    elif [ "$ADD_DEMO_DATA" == "false" ]; then
+        /usr/share/thingsboard/bin/install/install.sh
+    fi
+fi
+
 
 # Copying env variables into conf files
 printenv | awk -F "=" '{print "export " $1 "='\''" $2 "'\''"}' >> /usr/share/thingsboard/conf/thingsboard.conf