diff --git a/src/app/reducers/service-offerings/redux/service-offerings.reducers.spec.ts b/src/app/reducers/service-offerings/redux/service-offerings.reducers.spec.ts
index e17c13164a..920110cf87 100644
--- a/src/app/reducers/service-offerings/redux/service-offerings.reducers.spec.ts
+++ b/src/app/reducers/service-offerings/redux/service-offerings.reducers.spec.ts
@@ -57,7 +57,7 @@ describe('Test service offering reducer', () => {
       payload: [{ id: '1', name: 'off1' }, { id: '2', name: 'off2' }]
     });
     expect(state)
-      .toEqual({
+      .toEqual(<any>{
         ids: ['1', '2'],
         entities: { 1: { id: '1', name: 'off1' }, 2: { id: '2', name: 'off2' } },
         loading: false,
@@ -76,7 +76,7 @@ describe('Test service offering reducer', () => {
       payload: { 'filterOfferings': false }
     });
     expect(state)
-      .toEqual({
+      .toEqual(<any>{
         ids: [],
         entities: {},
         loading: false,
@@ -94,7 +94,7 @@ describe('Test service offering reducer', () => {
     });
 
     expect(state)
-      .toEqual({
+      .toEqual(<any>{
         ids: [],
         entities: {},
         loading: false,
@@ -112,7 +112,7 @@ describe('Test service offering reducer', () => {
     });
 
     expect(state)
-      .toEqual({
+      .toEqual(<any>{
         ids: [],
         entities: {},
         loading: false,
@@ -133,7 +133,7 @@ describe('Test service offering reducer', () => {
     });
 
     expect(state)
-      .toEqual({
+      .toEqual(<any>{
         ids: [],
         entities: {},
         loading: false,
@@ -153,7 +153,7 @@ describe('Test service offering reducer', () => {
       payload: [{ id: '1', name: 'off1' }, { id: '2', name: 'off2' }]
     });
     expect(state)
-      .toEqual({
+      .toEqual(<any>{
         ids: ['1', '2'],
         entities: { 1: { id: '1', name: 'off1' }, 2: { id: '2', name: 'off2' } },
         loading: false,
@@ -323,7 +323,7 @@ describe('Test service offering reducer', () => {
       },
       resourceUsage
     );
-    expect(result3).toEqual({
+    expect(result3).toEqual(<any>{
       cpunumber: { max: 2, min: 1 },
       memory: { max: 2, min: 1 },
       cpuspeed: { min: 1, max: 2 }
diff --git a/src/app/reducers/vm/redux/vm-creation.effects.ts b/src/app/reducers/vm/redux/vm-creation.effects.ts
index 663aa537bb..8d2947b899 100644
--- a/src/app/reducers/vm/redux/vm-creation.effects.ts
+++ b/src/app/reducers/vm/redux/vm-creation.effects.ts
@@ -559,7 +559,7 @@ export class VirtualMachineCreationEffects {
     if (this.createSecurityGroup(state)) {
       this.handleDeploymentMessages({ stage: VmDeploymentStage.SG_GROUP_CREATION });
 
-      return this.vmCreationSecurityGroupService.getSecurityGroupCreationRequest(state.securityGroupData);
+      return this.vmCreationSecurityGroupService.getSecurityGroupCreationRequest(state);
     } else {
       return Observable.of(null);
     }
diff --git a/src/app/shared/services/service-offering.service.spec.ts b/src/app/shared/services/service-offering.service.spec.ts
index 9afed8bc4e..778efea0a1 100644
--- a/src/app/shared/services/service-offering.service.spec.ts
+++ b/src/app/shared/services/service-offering.service.spec.ts
@@ -152,7 +152,7 @@ describe('Service-offering service', () => {
       deploymentplanner: '',
       domain: 'domainId'
     };
-    const availableOfferings = [
+    const availableOfferings = <any>[
       {
         id: '1',
         name: 'Service Offering',
diff --git a/src/app/vm/vm-creation/services/vm-creation-security-group.service.spec.ts b/src/app/vm/vm-creation/services/vm-creation-security-group.service.spec.ts
new file mode 100644
index 0000000000..61cef7ccdb
--- /dev/null
+++ b/src/app/vm/vm-creation/services/vm-creation-security-group.service.spec.ts
@@ -0,0 +1,48 @@
+import { HttpClientTestingModule } from '@angular/common/http/testing';
+import { Injectable } from '@angular/core';
+import { TestBed } from '@angular/core/testing';
+// tslint:disable-next-line
+import { PrivateSecurityGroupCreationService } from '../../../security-group/services/creation-services/private-security-group-creation.service';
+// tslint:disable-next-line
+import { SharedSecurityGroupCreationService } from '../../../security-group/services/creation-services/shared-security-group-creation.service';
+// tslint:disable-next-line
+import { TemplateSecurityGroupCreationService } from '../../../security-group/services/creation-services/template-security-group-creation.service';
+import { NetworkRuleService } from '../../../security-group/services/network-rule.service';
+import { SecurityGroupService } from '../../../security-group/services/security-group.service';
+import { AsyncJobService } from '../../../shared/services/async-job.service';
+import { ConfigService } from '../../../shared/services/config.service';
+import { MarkForRemovalService } from '../../../shared/services/tags/mark-for-removal.service';
+import { SecurityGroupTagService } from '../../../shared/services/tags/security-group-tag.service';
+import { TagService } from '../../../shared/services/tags/tag.service';
+import { VmCreationSecurityGroupService } from './vm-creation-security-group.service';
+
+describe('VM creation security group service', () => {
+  let vmCreationSecurityGroupService: VmCreationSecurityGroupService;
+
+  beforeEach(() => {
+    TestBed.configureTestingModule({
+      providers: [
+        ConfigService,
+        SecurityGroupService,
+        VmCreationSecurityGroupService,
+        TemplateSecurityGroupCreationService,
+        PrivateSecurityGroupCreationService,
+        SharedSecurityGroupCreationService,
+        SecurityGroupTagService,
+        MarkForRemovalService,
+        TagService,
+        AsyncJobService,
+        NetworkRuleService
+      ],
+      imports: [
+        HttpClientTestingModule
+      ]
+    });
+    vmCreationSecurityGroupService = TestBed.get(VmCreationSecurityGroupService);
+  });
+
+  it('should assign VM name to the private security group', () => {
+    const result = vmCreationSecurityGroupService['securityGroupCreationData']('new-vm');
+    expect(result.name).toBe('sg-new-vm');
+  });
+});
diff --git a/src/app/vm/vm-creation/services/vm-creation-security-group.service.ts b/src/app/vm/vm-creation/services/vm-creation-security-group.service.ts
index a5e7630537..4fe01f2e7e 100644
--- a/src/app/vm/vm-creation/services/vm-creation-security-group.service.ts
+++ b/src/app/vm/vm-creation/services/vm-creation-security-group.service.ts
@@ -1,8 +1,12 @@
 import { Injectable } from '@angular/core';
+import { VmCreationState } from '../data/vm-creation-state';
 import { VmCreationSecurityGroupData } from '../security-group/vm-creation-security-group-data';
 import { Observable } from 'rxjs/Observable';
 import { VmCreationSecurityGroupMode } from '../security-group/vm-creation-security-group-mode';
-import { GROUP_POSTFIX, SecurityGroupService } from '../../../security-group/services/security-group.service';
+import {
+  GROUP_POSTFIX,
+  SecurityGroupService
+} from '../../../security-group/services/security-group.service';
 import { NetworkRule } from '../../../security-group/network-rule.model';
 import { Rules } from '../../../shared/components/security-group-builder/rules';
 import { Utils } from '../../../shared/services/utils/utils.service';
@@ -14,21 +18,17 @@ export class VmCreationSecurityGroupService {
   constructor(private securityGroupService: SecurityGroupService) {
   }
 
-  public getSecurityGroupCreationRequest(securityGroupData: VmCreationSecurityGroupData): Observable<SecurityGroup[]> {
-    if (securityGroupData.mode === VmCreationSecurityGroupMode.Builder) {
-      const data = this.securityGroupCreationData;
-      const rules = this.getSecurityGroupCreationRules(securityGroupData.rules);
-      return this.securityGroupService.createPrivate(data, rules).map(securityGroup => [securityGroup]);
+  public getSecurityGroupCreationRequest(state: VmCreationState): Observable<SecurityGroup[]> {
+    if (state.securityGroupData.mode === VmCreationSecurityGroupMode.Builder) {
+      const data = this.securityGroupCreationData(state.displayName);
+      const rules = this.getSecurityGroupCreationRules(state.securityGroupData.rules);
+      return this.securityGroupService.createPrivate(data, rules)
+        .map(securityGroup => [securityGroup]);
     } else {
-      return Observable.of(securityGroupData.securityGroups);
+      return Observable.of(state.securityGroupData.securityGroups);
     }
   }
 
-  private get securityGroupCreationData(): any {
-    return {
-      name: this.name
-    };
-  }
 
   private get name(): string {
     return Utils.getUniqueId() + GROUP_POSTFIX;
@@ -40,4 +40,10 @@ export class VmCreationSecurityGroupService {
       egress: rules.egress
     };
   }
+
+  private securityGroupCreationData(vmDisplayName?: string): any {
+    return {
+      name: vmDisplayName ? `sg-${ vmDisplayName }` : this.name
+    };
+  }
 }