diff --git a/gns3server/compute/iou/iou_vm.py b/gns3server/compute/iou/iou_vm.py
index 2823e751..4d12122c 100644
--- a/gns3server/compute/iou/iou_vm.py
+++ b/gns3server/compute/iou/iou_vm.py
@@ -86,6 +86,7 @@ class IOUVM(BaseNode):
         self._startup_config = ""
         self._private_config = ""
         self._ram = 256  # Megabytes
+        self._application_id = None
         self._l1_keepalives = False  # used to overcome the always-up Ethernet interfaces (not supported by all IOSes).
 
     def _config(self):
@@ -206,7 +207,8 @@ class IOUVM(BaseNode):
                        "nvram": self._nvram,
                        "l1_keepalives": self._l1_keepalives,
                        "use_default_iou_values": self._use_default_iou_values,
-                       "command_line": self.command_line}
+                       "command_line": self.command_line,
+                       "application_id": self.application_id}
 
         # return the relative path if the IOU image is in the images_path directory
         iou_vm_info["path"] = self.manager.get_relative_image_path(self.path)
@@ -306,11 +308,6 @@ class IOUVM(BaseNode):
 
         super(IOUVM, IOUVM).name.__set__(self, new_name)
 
-    @property
-    def application_id(self):
-
-        return self._manager.get_application_id(self.id)
-
     @property
     def iourc_content(self):
 
@@ -1065,6 +1062,27 @@ class IOUVM(BaseNode):
         else:
             return None
 
+    @property
+    def application_id(self):
+        """
+        Returns application_id which unique identifier for IOU running script. Value is between 1 and 512.
+        When it's not set returns value from the local manager.
+
+        :returns: integer between 1 and 512
+        """
+        if self._application_id is None:
+            return self._manager.get_application_id(self.id)
+        return self._application_id
+
+    @application_id.setter
+    def application_id(self, application_id):
+        """
+        Sets application_id for IOU.
+
+        :param: integer between 1 and 512
+        """
+        self._application_id = application_id
+
     def extract_configs(self):
         """
         Gets the contents of the config files
diff --git a/gns3server/compute/iou/utils/application_id.py b/gns3server/compute/iou/utils/application_id.py
new file mode 100644
index 00000000..d3de5fe4
--- /dev/null
+++ b/gns3server/compute/iou/utils/application_id.py
@@ -0,0 +1,36 @@
+# -*- coding: utf-8 -*-
+#
+# Copyright (C) 2017 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 ..iou_error import IOUError
+
+import logging
+log = logging.getLogger(__name__)
+
+
+def get_next_application_id(nodes):
+    """
+    Calculates free application_id from given nodes
+    :param nodes:
+    :raises IOUError when exceeds number
+    :return: integer first free id
+    """
+    used = set([n.properties.get('application_id') for n in nodes if n.node_type == 'iou'])
+    pool = set(range(1, 512))
+    try:
+        return (pool - used).pop()
+    except KeyError:
+        raise IOUError("Cannot create a new IOU VM (limit of 512 VMs reached)")
diff --git a/gns3server/controller/node.py b/gns3server/controller/node.py
index bfff2624..f6575b7a 100644
--- a/gns3server/controller/node.py
+++ b/gns3server/controller/node.py
@@ -66,7 +66,7 @@ class Node:
         self.name = name
         self._console = None
         self._console_type = None
-        self._properties = {}
+        self._properties = None
         self._command_line = None
         self._node_directory = None
         self._status = "stopped"
@@ -88,6 +88,8 @@ class Node:
         # This properties will be recompute
         ignore_properties = ("width", "height")
 
+        self.properties = kwargs.pop('properties', {})
+
         # Update node properties with additional elements
         for prop in kwargs:
             if prop not in ignore_properties:
diff --git a/gns3server/controller/project.py b/gns3server/controller/project.py
index 16c05a13..d1d8935f 100644
--- a/gns3server/controller/project.py
+++ b/gns3server/controller/project.py
@@ -39,7 +39,7 @@ from ..utils.asyncio.pool import Pool
 from ..utils.asyncio import locked_coroutine
 from .export_project import export_project
 from .import_project import import_project
-
+from ..compute.iou.utils.application_id import get_next_application_id
 
 import logging
 log = logging.getLogger(__name__)
@@ -353,12 +353,9 @@ class Project:
         if node_id in self._nodes:
             return self._nodes[node_id]
 
-        # Due to a limitation all iou need to run on the same
-        # compute server otherwise you have mac address conflict
-        if node_type == "iou":
-            for node in self._nodes.values():
-                if node.node_type == node_type and node.compute != compute:
-                    raise aiohttp.web.HTTPConflict(text="All IOU nodes need to run on the same server.")
+        if node_type == "iou" and 'application_id' not in kwargs.keys():
+
+            kwargs['application_id'] = get_next_application_id(self._nodes.values())
 
         node = Node(self, compute, name, node_id=node_id, node_type=node_type, **kwargs)
         if compute not in self._project_created_on_compute:
diff --git a/gns3server/schemas/iou.py b/gns3server/schemas/iou.py
index 389dea6e..b8a68565 100644
--- a/gns3server/schemas/iou.py
+++ b/gns3server/schemas/iou.py
@@ -86,6 +86,10 @@ IOU_CREATE_SCHEMA = {
             "description": "Private-config of IOU",
             "type": ["string", "null"]
         },
+        "application_id": {
+            "description": "Application ID for running IOU image",
+            "type": ["integer", "null"]
+        },
     },
     "additionalProperties": False,
     "required": ["name", "path"]
@@ -182,7 +186,11 @@ IOU_OBJECT_SCHEMA = {
         "command_line": {
             "description": "Last command line used by GNS3 to start QEMU",
             "type": "string"
-        }
+        },
+        "application_id": {
+            "description": "Application ID for running IOU image",
+            "type": "integer"
+        },
     },
     "additionalProperties": False
 }
diff --git a/tests/compute/iou/test_iou_vm.py b/tests/compute/iou/test_iou_vm.py
index 83e65041..8f899f7c 100644
--- a/tests/compute/iou/test_iou_vm.py
+++ b/tests/compute/iou/test_iou_vm.py
@@ -434,3 +434,14 @@ def test_extract_configs(vm):
     startup_config, private_config = vm.extract_configs()
     assert len(startup_config) == 1392
     assert len(private_config) == 0
+
+
+def test_application_id(project, manager):
+    """
+    Checks if uses local manager to get application_id when not set
+    """
+    vm = IOUVM("test", str(uuid.uuid4()), project, manager)
+    assert vm.application_id == 1
+
+    vm.application_id = 3
+    assert vm.application_id == 3
diff --git a/tests/compute/iou/utils/test_application_id.py b/tests/compute/iou/utils/test_application_id.py
new file mode 100644
index 00000000..e7302c5c
--- /dev/null
+++ b/tests/compute/iou/utils/test_application_id.py
@@ -0,0 +1,38 @@
+# -*- coding: utf-8 -*-
+#
+# Copyright (C) 2017 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
+from unittest.mock import MagicMock
+from gns3server.compute.iou.utils.application_id import get_next_application_id, IOUError
+
+
+def test_get_next_application_id():
+    # test first node
+    assert get_next_application_id([]) == 1
+
+    # test second node
+    nodes = [
+        MagicMock(node_type='different'),
+        MagicMock(node_type='iou', properties=dict(application_id=1))
+    ]
+    assert get_next_application_id(nodes) == 2
+
+    # test reach out the limit
+    nodes = [MagicMock(node_type='iou', properties=dict(application_id=i)) for i in range(1, 512)]
+
+    with pytest.raises(IOUError):
+        get_next_application_id(nodes)
diff --git a/tests/controller/test_project.py b/tests/controller/test_project.py
index 0c9a929f..c09a9e55 100644
--- a/tests/controller/test_project.py
+++ b/tests/controller/test_project.py
@@ -217,28 +217,6 @@ def test_add_node_from_appliance(async_run, controller):
     controller.notification.emit.assert_any_call("node.created", node.__json__())
 
 
-def test_create_iou_on_multiple_node(async_run, controller):
-    """
-    Due to mac address collision you can't create an IOU node
-    on two different server
-    """
-    compute = MagicMock()
-    compute.id = "remote"
-
-    compute2 = MagicMock()
-    compute2.id = "remote2"
-
-    project = Project(controller=controller, name="Test")
-
-    response = MagicMock()
-    response.json = {"console": 2048}
-    compute.post = AsyncioMagicMock(return_value=response)
-
-    node1 = async_run(project.add_node(compute, "test", None, node_type="iou"))
-    with pytest.raises(aiohttp.web_exceptions.HTTPConflict):
-        async_run(project.add_node(compute2, "test2", None, node_type="iou"))
-
-
 def test_delete_node(async_run, controller):
     """
     For a local server we send the project path
@@ -306,7 +284,7 @@ def test_get_node(async_run, controller):
         project.get_node(vm.id)
 
 
-def test_addLink(async_run, project, controller):
+def test_add_link(async_run, project, controller):
     compute = MagicMock()
 
     response = MagicMock()
@@ -327,7 +305,7 @@ def test_addLink(async_run, project, controller):
     controller.notification.emit.assert_any_call("link.created", link.__json__())
 
 
-def test_getLink(async_run, project):
+def test_get_link(async_run, project):
     compute = MagicMock()
 
     response = MagicMock()
@@ -341,7 +319,7 @@ def test_getLink(async_run, project):
         project.get_link("test")
 
 
-def test_deleteLink(async_run, project, controller):
+def test_delete_link(async_run, project, controller):
     compute = MagicMock()
 
     response = MagicMock()
@@ -357,7 +335,7 @@ def test_deleteLink(async_run, project, controller):
     assert len(project._links) == 0
 
 
-def test_addDrawing(async_run, project, controller):
+def test_add_drawing(async_run, project, controller):
     controller.notification.emit = MagicMock()
 
     drawing = async_run(project.add_drawing(None, svg="<svg></svg>"))
@@ -365,7 +343,7 @@ def test_addDrawing(async_run, project, controller):
     controller.notification.emit.assert_any_call("drawing.created", drawing.__json__())
 
 
-def test_getDrawing(async_run, project):
+def test_get_drawing(async_run, project):
     drawing = async_run(project.add_drawing(None))
     assert project.get_drawing(drawing.id) == drawing
 
@@ -373,7 +351,7 @@ def test_getDrawing(async_run, project):
         project.get_drawing("test")
 
 
-def test_deleteDrawing(async_run, project, controller):
+def test_delete_drawing(async_run, project, controller):
     assert len(project._drawings) == 0
     drawing = async_run(project.add_drawing())
     assert len(project._drawings) == 1
@@ -383,7 +361,7 @@ def test_deleteDrawing(async_run, project, controller):
     assert len(project._drawings) == 0
 
 
-def test_cleanPictures(async_run, project, controller):
+def test_clean_pictures(async_run, project, controller):
     """
     When a project is close old pictures should be removed
     """
@@ -600,3 +578,24 @@ def test_node_name(project, async_run):
     assert node.name == "helloworld-1"
     node = async_run(project.add_node(compute, "hello world-{0}", None, node_type="vpcs", properties={"startup_config": "test.cfg"}))
     assert node.name == "helloworld-2"
+
+
+def test_add_iou_node_and_check_if_gets_application_id(project, async_run):
+    compute = MagicMock()
+    compute.id = "local"
+    response = MagicMock()
+    response.json = {"console": 2048}
+    compute.post = AsyncioMagicMock(return_value=response)
+
+    # tests if get_next_application_id is called
+    with patch('gns3server.controller.project.get_next_application_id', return_value=222) as mocked_get_app_id:
+        node = async_run(project.add_node(
+            compute, "test", None, node_type="iou", properties={"startup_config": "test.cfg"}))
+        assert mocked_get_app_id.called
+        assert node.properties['application_id'] == 222
+
+    # tests if we can send property and it will be used
+    node = async_run(project.add_node(
+        compute, "test", None, node_type="iou", application_id=333, properties={"startup_config": "test.cfg"}))
+    assert mocked_get_app_id.called
+    assert node.properties['application_id'] == 333
\ No newline at end of file