diff --git a/bin/nova-manage b/bin/nova-manage
index 02f20347dac8..51e0c32c9627 100755
--- a/bin/nova-manage
+++ b/bin/nova-manage
@@ -617,7 +617,7 @@ class VmCommands(object):
         :param host: show all instance on specified host.
         :param instance: show specificed instance.
         """
-        print "%-10s %-15s %-10s %-10s %-19s %-12s %-12s %-12s" \
+        print "%-10s %-15s %-10s %-10s %-26s %-9s %-9s %-9s" \
               "  %-10s %-10s %-10s %-5s" % (
             _('instance'),
             _('node'),
@@ -639,14 +639,14 @@ class VmCommands(object):
                            context.get_admin_context(), host)
 
         for instance in instances:
-            print "%-10s %-15s %-10s %-10s %-19s %-12s %-12s %-12s" \
+            print "%-10s %-15s %-10s %-10s %-26s %-9s %-9s %-9s" \
                   "  %-10s %-10s %-10s %-5d" % (
                 instance['hostname'],
                 instance['host'],
-                instance['instance_type'],
+                instance['instance_type'].name,
                 instance['state_description'],
                 instance['launched_at'],
-                instance['image_id'],
+                instance['image_ref'],
                 instance['kernel_id'],
                 instance['ramdisk_id'],
                 instance['project_id'],
@@ -878,7 +878,7 @@ class InstanceTypeCommands(object):
         try:
             instance_types.create(name, memory, vcpus, local_gb,
                                   flavorid, swap, rxtx_quota, rxtx_cap)
-        except exception.InvalidInput:
+        except exception.InvalidInput, e:
             print "Must supply valid parameters to create instance_type"
             print e
             sys.exit(1)
diff --git a/nova/api/openstack/images.py b/nova/api/openstack/images.py
index d43340e104de..7ebf58023541 100644
--- a/nova/api/openstack/images.py
+++ b/nova/api/openstack/images.py
@@ -90,31 +90,67 @@ class Controller(object):
         return webob.exc.HTTPNoContent()
 
     def create(self, req, body):
-        """Snapshot a server instance and save the image.
+        """Snapshot or backup a server instance and save the image.
+
+        Images now have an `image_type` associated with them, which can be
+        'snapshot' or the backup type, like 'daily' or 'weekly'.
+
+        If the image_type is backup-like, then the rotation factor can be
+        included and that will cause the oldest backups that exceed the
+        rotation factor to be deleted.
 
         :param req: `wsgi.Request` object
         """
+        def get_param(param):
+            try:
+                return body["image"][param]
+            except KeyError:
+                raise webob.exc.HTTPBadRequest(explanation="Missing required "
+                        "param: %s" % param)
+
         context = req.environ['nova.context']
         content_type = req.get_content_type()
 
         if not body:
             raise webob.exc.HTTPBadRequest()
 
+        image_type = body["image"].get("image_type", "snapshot")
+
         try:
             server_id = self._server_id_from_req(req, body)
-            image_name = body["image"]["name"]
         except KeyError:
             raise webob.exc.HTTPBadRequest()
 
+        image_name = get_param("name")
         props = self._get_extra_properties(req, body)
 
-        image = self._compute_service.snapshot(context, server_id,
-                                               image_name, props)
+        if image_type == "snapshot":
+            image = self._compute_service.snapshot(
+                        context, server_id, image_name,
+                        extra_properties=props)
+        elif image_type == "backup":
+            # NOTE(sirp): Unlike snapshot, backup is not a customer facing
+            # API call; rather, it's used by the internal backup scheduler
+            if not FLAGS.allow_admin_api:
+                raise webob.exc.HTTPBadRequest(
+                        explanation="Admin API Required")
+
+            backup_type = get_param("backup_type")
+            rotation = int(get_param("rotation"))
+
+            image = self._compute_service.backup(
+                        context, server_id, image_name,
+                        backup_type, rotation, extra_properties=props)
+        else:
+            LOG.error(_("Invalid image_type '%s' passed") % image_type)
+            raise webob.exc.HTTPBadRequest(explanation="Invalue image_type: "
+                   "%s" % image_type)
+
         return dict(image=self.get_builder(req).build(image, detail=True))
 
     def get_builder(self, request):
         """Indicates that you must use a Controller subclass."""
-        raise NotImplementedError
+        raise NotImplementedError()
 
     def _server_id_from_req(self, req, data):
         raise NotImplementedError()
diff --git a/nova/api/openstack/wsgi.py b/nova/api/openstack/wsgi.py
index 5b6e3cb1d974..836a13b62326 100644
--- a/nova/api/openstack/wsgi.py
+++ b/nova/api/openstack/wsgi.py
@@ -394,4 +394,5 @@ class Resource(wsgi.Application):
         """Find action-spefic method on controller and call it."""
 
         controller_method = getattr(self.controller, action)
+        print "DISPATCHING", self.controller, action
         return controller_method(req=request, **action_args)
diff --git a/nova/compute/api.py b/nova/compute/api.py
index af18741b60b2..59a392e7a436 100644
--- a/nova/compute/api.py
+++ b/nova/compute/api.py
@@ -711,19 +711,60 @@ class API(base.Base):
         raise exception.Error(_("Unable to find host for Instance %s")
                                 % instance_id)
 
+    def backup(self, context, instance_id, name, backup_type, rotation,
+               extra_properties=None):
+        """Backup the given instance
+
+        :param instance_id: nova.db.sqlalchemy.models.Instance.Id
+        :param name: name of the backup or snapshot
+            name = backup_type  # daily backups are called 'daily'
+        :param rotation: int representing how many backups to keep around;
+            None if rotation shouldn't be used (as in the case of snapshots)
+        :param extra_properties: dict of extra image properties to include
+        """
+        recv_meta = self._create_image(context, instance_id, name, 'backup',
+                            backup_type=backup_type, rotation=rotation,
+                            extra_properties=extra_properties)
+        return recv_meta
+
     def snapshot(self, context, instance_id, name, extra_properties=None):
         """Snapshot the given instance.
 
+        :param instance_id: nova.db.sqlalchemy.models.Instance.Id
+        :param name: name of the backup or snapshot
+        :param extra_properties: dict of extra image properties to include
+
         :returns: A dict containing image metadata
         """
-        properties = {'instance_id': str(instance_id),
+        return self._create_image(context, instance_id, name, 'snapshot',
+                                  extra_properties=extra_properties)
+
+    def _create_image(self, context, instance_id, name, image_type,
+                      backup_type=None, rotation=None, extra_properties=None):
+        """Create snapshot or backup for an instance on this host.
+
+        :param context: security context
+        :param instance_id: nova.db.sqlalchemy.models.Instance.Id
+        :param name: string for name of the snapshot
+        :param image_type: snapshot | backup
+        :param backup_type: daily | weekly
+        :param rotation: int representing how many backups to keep around;
+            None if rotation shouldn't be used (as in the case of snapshots)
+        :param extra_properties: dict of extra image properties to include
+
+        """
+        instance = db.api.instance_get(context, instance_id)
+        properties = {'instance_uuid': instance['uuid'],
                       'user_id': str(context.user_id),
-                      'image_state': 'creating'}
+                      'image_state': 'creating',
+                      'image_type': image_type,
+                      'backup_type': backup_type}
         properties.update(extra_properties or {})
         sent_meta = {'name': name, 'is_public': False,
                      'status': 'creating', 'properties': properties}
         recv_meta = self.image_service.create(context, sent_meta)
-        params = {'image_id': recv_meta['id']}
+        params = {'image_id': recv_meta['id'], 'image_type': image_type,
+                  'backup_type': backup_type, 'rotation': rotation}
         self._cast_compute_message('snapshot_instance', context, instance_id,
                                    params=params)
         return recv_meta
diff --git a/nova/compute/manager.py b/nova/compute/manager.py
index 409e71f5762c..78c98cf420ec 100644
--- a/nova/compute/manager.py
+++ b/nova/compute/manager.py
@@ -46,6 +46,7 @@ from eventlet import greenthread
 
 from nova import exception
 from nova import flags
+import nova.image
 from nova import log as logging
 from nova import manager
 from nova import network
@@ -53,7 +54,7 @@ from nova import rpc
 from nova import utils
 from nova import volume
 from nova.compute import power_state
-from nova.notifier import api as notifier_api
+from nova.notifier import api as notifier
 from nova.compute.utils import terminate_volumes
 from nova.virt import driver
 
@@ -84,6 +85,10 @@ flags.DEFINE_integer('host_state_interval', 120,
 LOG = logging.getLogger('nova.compute.manager')
 
 
+def publisher_id(host=None):
+    return notifier.publisher_id("compute", host)
+
+
 def checks_instance_lock(function):
     """Decorator to prevent action against locked instances for non-admins."""
     @functools.wraps(function)
@@ -112,10 +117,6 @@ def checks_instance_lock(function):
     return decorated_function
 
 
-def publisher_id(host=None):
-    return notifier_api.publisher_id("compute", host)
-
-
 class ComputeManager(manager.SchedulerDependentManager):
     """Manages the running instances from creation to destruction."""
 
@@ -200,7 +201,7 @@ class ComputeManager(manager.SchedulerDependentManager):
     def get_console_pool_info(self, context, console_type):
         return self.driver.get_console_pool_info(console_type)
 
-    @exception.wrap_exception(notifier=notifier_api, publisher_id=publisher_id())
+    @exception.wrap_exception(notifier=notifier, publisher_id=publisher_id())
     def refresh_security_group_rules(self, context, security_group_id,
                                      **kwargs):
         """Tell the virtualization driver to refresh security group rules.
@@ -210,7 +211,7 @@ class ComputeManager(manager.SchedulerDependentManager):
         """
         return self.driver.refresh_security_group_rules(security_group_id)
 
-    @exception.wrap_exception(notifier=notifier_api, publisher_id=publisher_id())
+    @exception.wrap_exception(notifier=notifier, publisher_id=publisher_id())
     def refresh_security_group_members(self, context,
                                        security_group_id, **kwargs):
         """Tell the virtualization driver to refresh security group members.
@@ -220,7 +221,7 @@ class ComputeManager(manager.SchedulerDependentManager):
         """
         return self.driver.refresh_security_group_members(security_group_id)
 
-    @exception.wrap_exception(notifier=notifier_api, publisher_id=publisher_id())
+    @exception.wrap_exception(notifier=notifier, publisher_id=publisher_id())
     def refresh_provider_fw_rules(self, context, **_kwargs):
         """This call passes straight through to the virtualization driver."""
         return self.driver.refresh_provider_fw_rules()
@@ -349,9 +350,9 @@ class ComputeManager(manager.SchedulerDependentManager):
             self._update_launched_at(context, instance_id)
             self._update_state(context, instance_id)
             usage_info = utils.usage_from_instance(instance_ref)
-            notifier_api.notify('compute.%s' % self.host,
+            notifier.notify('compute.%s' % self.host,
                                 'compute.instance.create',
-                                notifier_api.INFO,
+                                notifier.INFO,
                                 usage_info)
         except exception.InstanceNotFound:
             # FIXME(wwolf): We are just ignoring InstanceNotFound
@@ -360,11 +361,11 @@ class ComputeManager(manager.SchedulerDependentManager):
             # be fixed once we have no-db-messaging
             pass
 
-    @exception.wrap_exception(notifier=notifier_api, publisher_id=publisher_id())
+    @exception.wrap_exception(notifier=notifier, publisher_id=publisher_id())
     def run_instance(self, context, instance_id, **kwargs):
         self._run_instance(context, instance_id, **kwargs)
 
-    @exception.wrap_exception(notifier=notifier_api, publisher_id=publisher_id())
+    @exception.wrap_exception(notifier=notifier, publisher_id=publisher_id())
     @checks_instance_lock
     def start_instance(self, context, instance_id):
         """Starting an instance on this host."""
@@ -426,7 +427,7 @@ class ComputeManager(manager.SchedulerDependentManager):
         if action_str == 'Terminating':
             terminate_volumes(self.db, context, instance_id)
 
-    @exception.wrap_exception(notifier=notifier_api, publisher_id=publisher_id())
+    @exception.wrap_exception(notifier=notifier, publisher_id=publisher_id())
     @checks_instance_lock
     def terminate_instance(self, context, instance_id):
         """Terminate an instance on this host."""
@@ -436,19 +437,19 @@ class ComputeManager(manager.SchedulerDependentManager):
         # TODO(ja): should we keep it in a terminated state for a bit?
         self.db.instance_destroy(context, instance_id)
         usage_info = utils.usage_from_instance(instance_ref)
-        notifier_api.notify('compute.%s' % self.host,
+        notifier.notify('compute.%s' % self.host,
                             'compute.instance.delete',
-                            notifier_api.INFO,
+                            notifier.INFO,
                             usage_info)
 
-    @exception.wrap_exception(notifier=notifier_api, publisher_id=publisher_id())
+    @exception.wrap_exception(notifier=notifier, publisher_id=publisher_id())
     @checks_instance_lock
     def stop_instance(self, context, instance_id):
         """Stopping an instance on this host."""
         self._shutdown_instance(context, instance_id, 'Stopping')
         # instance state will be updated to stopped by _poll_instance_states()
 
-    @exception.wrap_exception(notifier=notifier_api, publisher_id=publisher_id())
+    @exception.wrap_exception(notifier=notifier, publisher_id=publisher_id())
     @checks_instance_lock
     def rebuild_instance(self, context, instance_id, **kwargs):
         """Destroy and re-make this instance.
@@ -478,12 +479,12 @@ class ComputeManager(manager.SchedulerDependentManager):
         self._update_state(context, instance_id)
         usage_info = utils.usage_from_instance(instance_ref,
                                                image_ref=image_ref)
-        notifier_api.notify('compute.%s' % self.host,
+        notifier.notify('compute.%s' % self.host,
                             'compute.instance.rebuild',
-                            notifier_api.INFO,
+                            notifier.INFO,
                             usage_info)
 
-    @exception.wrap_exception(notifier=notifier_api, publisher_id=publisher_id())
+    @exception.wrap_exception(notifier=notifier, publisher_id=publisher_id())
     @checks_instance_lock
     def reboot_instance(self, context, instance_id):
         """Reboot an instance on this host."""
@@ -508,9 +509,20 @@ class ComputeManager(manager.SchedulerDependentManager):
         self.driver.reboot(instance_ref)
         self._update_state(context, instance_id)
 
-    @exception.wrap_exception(notifier=notifier_api, publisher_id=publisher_id())
-    def snapshot_instance(self, context, instance_id, image_id):
-        """Snapshot an instance on this host."""
+    @exception.wrap_exception(notifier=notifier, publisher_id=publisher_id())
+    def snapshot_instance(self, context, instance_id, image_id,
+                          image_type='snapshot', backup_type=None,
+                          rotation=None):
+        """Snapshot an instance on this host.
+
+        :param context: security context
+        :param instance_id: nova.db.sqlalchemy.models.Instance.Id
+        :param image_id: glance.db.sqlalchemy.models.Image.Id
+        :param image_type: snapshot | backup
+        :param backup_type: daily | weekly
+        :param rotation: int representing how many backups to keep around;
+            None if rotation shouldn't be used (as in the case of snapshots)
+        """
         context = context.elevated()
         instance_ref = self.db.instance_get(context, instance_id)
 
@@ -530,7 +542,66 @@ class ComputeManager(manager.SchedulerDependentManager):
 
         self.driver.snapshot(instance_ref, image_id)
 
-    @exception.wrap_exception(notifier=notifier_api, publisher_id=publisher_id())
+        if image_type == 'snapshot':
+            if rotation:
+                raise exception.ImageRotationNotAllowed()
+        elif image_type == 'backup':
+            if rotation:
+                instance_uuid = instance_ref['uuid']
+                self.rotate_backups(context, instance_uuid, backup_type,
+                                    rotation)
+            else:
+                raise exception.RotationRequiredForBackup()
+        else:
+            raise Exception(_('Image type not recognized %s') % image_type)
+
+    def rotate_backups(self, context, instance_uuid, backup_type, rotation):
+        """Delete excess backups associated to an instance.
+
+        Instances are allowed a fixed number of backups (the rotation number);
+        this method deletes the oldest backups that exceed the rotation
+        threshold.
+
+        :param context: security context
+        :param instance_uuid: string representing uuid of instance
+        :param backup_type: daily | weekly
+        :param rotation: int representing how many backups to keep around;
+            None if rotation shouldn't be used (as in the case of snapshots)
+        """
+        # NOTE(jk0): Eventually extract this out to the ImageService?
+        def fetch_images():
+            images = []
+            marker = None
+            while True:
+                batch = image_service.detail(context, filters=filters,
+                        marker=marker, sort_key='created_at', sort_dir='desc')
+                if not batch:
+                    break
+                images += batch
+                marker = batch[-1]['id']
+            return images
+
+        image_service = nova.image.get_default_image_service()
+        filters = {'property-image_type': 'backup',
+                   'property-backup_type': backup_type,
+                   'property-instance_uuid': instance_uuid}
+
+        images = fetch_images()
+        num_images = len(images)
+        LOG.debug(_("Found %(num_images)d images (rotation: %(rotation)d)"
+                    % locals()))
+        if num_images > rotation:
+            # NOTE(sirp): this deletes all backups that exceed the rotation
+            # limit
+            excess = len(images) - rotation
+            LOG.debug(_("Rotating out %d backups" % excess))
+            for i in xrange(excess):
+                image = images.pop()
+                image_id = image['id']
+                LOG.debug(_("Deleting image %d" % image_id))
+                image_service.delete(context, image_id)
+
+    @exception.wrap_exception(notifier=notifier, publisher_id=publisher_id())
     @checks_instance_lock
     def set_admin_password(self, context, instance_id, new_pass=None):
         """Set the root/admin password for an instance on this host.
@@ -578,7 +649,7 @@ class ComputeManager(manager.SchedulerDependentManager):
                     time.sleep(1)
                     continue
 
-    @exception.wrap_exception(notifier=notifier_api, publisher_id=publisher_id())
+    @exception.wrap_exception(notifier=notifier, publisher_id=publisher_id())
     @checks_instance_lock
     def inject_file(self, context, instance_id, path, file_contents):
         """Write a file to the specified path in an instance on this host."""
@@ -596,7 +667,7 @@ class ComputeManager(manager.SchedulerDependentManager):
         LOG.audit(msg)
         self.driver.inject_file(instance_ref, path, file_contents)
 
-    @exception.wrap_exception(notifier=notifier_api, publisher_id=publisher_id())
+    @exception.wrap_exception(notifier=notifier, publisher_id=publisher_id())
     @checks_instance_lock
     def agent_update(self, context, instance_id, url, md5hash):
         """Update agent running on an instance on this host."""
@@ -614,7 +685,7 @@ class ComputeManager(manager.SchedulerDependentManager):
         LOG.audit(msg)
         self.driver.agent_update(instance_ref, url, md5hash)
 
-    @exception.wrap_exception(notifier=notifier_api, publisher_id=publisher_id())
+    @exception.wrap_exception(notifier=notifier, publisher_id=publisher_id())
     @checks_instance_lock
     def rescue_instance(self, context, instance_id):
         """Rescue an instance on this host."""
@@ -631,7 +702,7 @@ class ComputeManager(manager.SchedulerDependentManager):
         self.driver.rescue(instance_ref, _update_state)
         self._update_state(context, instance_id)
 
-    @exception.wrap_exception(notifier=notifier_api, publisher_id=publisher_id())
+    @exception.wrap_exception(notifier=notifier, publisher_id=publisher_id())
     @checks_instance_lock
     def unrescue_instance(self, context, instance_id):
         """Rescue an instance on this host."""
@@ -652,7 +723,7 @@ class ComputeManager(manager.SchedulerDependentManager):
         """Update instance state when async task completes."""
         self._update_state(context, instance_id)
 
-    @exception.wrap_exception(notifier=notifier_api, publisher_id=publisher_id())
+    @exception.wrap_exception(notifier=notifier, publisher_id=publisher_id())
     @checks_instance_lock
     def confirm_resize(self, context, instance_id, migration_id):
         """Destroys the source instance."""
@@ -660,12 +731,12 @@ class ComputeManager(manager.SchedulerDependentManager):
         instance_ref = self.db.instance_get(context, instance_id)
         self.driver.destroy(instance_ref)
         usage_info = utils.usage_from_instance(instance_ref)
-        notifier_api.notify('compute.%s' % self.host,
+        notifier.notify('compute.%s' % self.host,
                             'compute.instance.resize.confirm',
-                            notifier_api.INFO,
+                            notifier.INFO,
                             usage_info)
 
-    @exception.wrap_exception(notifier=notifier_api, publisher_id=publisher_id())
+    @exception.wrap_exception(notifier=notifier, publisher_id=publisher_id())
     @checks_instance_lock
     def revert_resize(self, context, instance_id, migration_id):
         """Destroys the new instance on the destination machine.
@@ -687,7 +758,7 @@ class ComputeManager(manager.SchedulerDependentManager):
                        'instance_id': instance_id, },
                 })
 
-    @exception.wrap_exception(notifier=notifier_api, publisher_id=publisher_id())
+    @exception.wrap_exception(notifier=notifier, publisher_id=publisher_id())
     @checks_instance_lock
     def finish_revert_resize(self, context, instance_id, migration_id):
         """Finishes the second half of reverting a resize.
@@ -712,12 +783,12 @@ class ComputeManager(manager.SchedulerDependentManager):
         self.db.migration_update(context, migration_id,
                 {'status': 'reverted'})
         usage_info = utils.usage_from_instance(instance_ref)
-        notifier_api.notify('compute.%s' % self.host,
+        notifier.notify('compute.%s' % self.host,
                             'compute.instance.resize.revert',
-                            notifier_api.INFO,
+                            notifier.INFO,
                             usage_info)
 
-    @exception.wrap_exception(notifier=notifier_api, publisher_id=publisher_id())
+    @exception.wrap_exception(notifier=notifier, publisher_id=publisher_id())
     @checks_instance_lock
     def prep_resize(self, context, instance_id, flavor_id):
         """Initiates the process of moving a running instance to another host.
@@ -755,12 +826,12 @@ class ComputeManager(manager.SchedulerDependentManager):
         usage_info = utils.usage_from_instance(instance_ref,
                               new_instance_type=instance_type['name'],
                               new_instance_type_id=instance_type['id'])
-        notifier_api.notify('compute.%s' % self.host,
+        notifier.notify('compute.%s' % self.host,
                             'compute.instance.resize.prep',
-                            notifier_api.INFO,
+                            notifier.INFO,
                             usage_info)
 
-    @exception.wrap_exception(notifier=notifier_api, publisher_id=publisher_id())
+    @exception.wrap_exception(notifier=notifier, publisher_id=publisher_id())
     @checks_instance_lock
     def resize_instance(self, context, instance_id, migration_id):
         """Starts the migration of a running instance to another host."""
@@ -786,7 +857,7 @@ class ComputeManager(manager.SchedulerDependentManager):
                                            'instance_id': instance_id,
                                            'disk_info': disk_info}})
 
-    @exception.wrap_exception(notifier=notifier_api, publisher_id=publisher_id())
+    @exception.wrap_exception(notifier=notifier, publisher_id=publisher_id())
     @checks_instance_lock
     def finish_resize(self, context, instance_id, migration_id, disk_info):
         """Completes the migration process.
@@ -816,7 +887,7 @@ class ComputeManager(manager.SchedulerDependentManager):
         self.db.migration_update(context, migration_id,
                 {'status': 'finished', })
 
-    @exception.wrap_exception(notifier=notifier_api, publisher_id=publisher_id())
+    @exception.wrap_exception(notifier=notifier, publisher_id=publisher_id())
     @checks_instance_lock
     def pause_instance(self, context, instance_id):
         """Pause an instance on this host."""
@@ -833,7 +904,7 @@ class ComputeManager(manager.SchedulerDependentManager):
                                                        instance_id,
                                                        result))
 
-    @exception.wrap_exception(notifier=notifier_api, publisher_id=publisher_id())
+    @exception.wrap_exception(notifier=notifier, publisher_id=publisher_id())
     @checks_instance_lock
     def unpause_instance(self, context, instance_id):
         """Unpause a paused instance on this host."""
@@ -850,7 +921,7 @@ class ComputeManager(manager.SchedulerDependentManager):
                                                        instance_id,
                                                        result))
 
-    @exception.wrap_exception(notifier=notifier_api, publisher_id=publisher_id())
+    @exception.wrap_exception(notifier=notifier, publisher_id=publisher_id())
     def get_diagnostics(self, context, instance_id):
         """Retrieve diagnostics for an instance on this host."""
         instance_ref = self.db.instance_get(context, instance_id)
@@ -859,7 +930,7 @@ class ComputeManager(manager.SchedulerDependentManager):
                       context=context)
             return self.driver.get_diagnostics(instance_ref)
 
-    @exception.wrap_exception(notifier=notifier_api, publisher_id=publisher_id())
+    @exception.wrap_exception(notifier=notifier, publisher_id=publisher_id())
     @checks_instance_lock
     def suspend_instance(self, context, instance_id):
         """Suspend the given instance."""
@@ -875,7 +946,7 @@ class ComputeManager(manager.SchedulerDependentManager):
                                                        instance_id,
                                                        result))
 
-    @exception.wrap_exception(notifier=notifier_api, publisher_id=publisher_id())
+    @exception.wrap_exception(notifier=notifier, publisher_id=publisher_id())
     @checks_instance_lock
     def resume_instance(self, context, instance_id):
         """Resume the given suspended instance."""
@@ -891,7 +962,7 @@ class ComputeManager(manager.SchedulerDependentManager):
                                                        instance_id,
                                                        result))
 
-    @exception.wrap_exception(notifier=notifier_api, publisher_id=publisher_id())
+    @exception.wrap_exception(notifier=notifier, publisher_id=publisher_id())
     def lock_instance(self, context, instance_id):
         """Lock the given instance."""
         context = context.elevated()
@@ -899,7 +970,7 @@ class ComputeManager(manager.SchedulerDependentManager):
         LOG.debug(_('instance %s: locking'), instance_id, context=context)
         self.db.instance_update(context, instance_id, {'locked': True})
 
-    @exception.wrap_exception(notifier=notifier_api, publisher_id=publisher_id())
+    @exception.wrap_exception(notifier=notifier, publisher_id=publisher_id())
     def unlock_instance(self, context, instance_id):
         """Unlock the given instance."""
         context = context.elevated()
@@ -907,7 +978,7 @@ class ComputeManager(manager.SchedulerDependentManager):
         LOG.debug(_('instance %s: unlocking'), instance_id, context=context)
         self.db.instance_update(context, instance_id, {'locked': False})
 
-    @exception.wrap_exception(notifier=notifier_api, publisher_id=publisher_id())
+    @exception.wrap_exception(notifier=notifier, publisher_id=publisher_id())
     def get_lock(self, context, instance_id):
         """Return the boolean state of the given instance's lock."""
         context = context.elevated()
@@ -934,7 +1005,7 @@ class ComputeManager(manager.SchedulerDependentManager):
                                                          context=context)
         self.driver.inject_network_info(instance_ref)
 
-    @exception.wrap_exception(notifier=notifier_api, publisher_id=publisher_id())
+    @exception.wrap_exception(notifier=notifier, publisher_id=publisher_id())
     def get_console_output(self, context, instance_id):
         """Send the console output for the given instance."""
         context = context.elevated()
@@ -944,7 +1015,7 @@ class ComputeManager(manager.SchedulerDependentManager):
         output = self.driver.get_console_output(instance_ref)
         return output.decode('utf-8', 'replace').encode('ascii', 'replace')
 
-    @exception.wrap_exception
+    @exception.wrap_exception(notifier=notifier, publisher_id=publisher_id())
     def get_ajax_console(self, context, instance_id):
         """Return connection information for an ajax console."""
         context = context.elevated()
@@ -952,7 +1023,7 @@ class ComputeManager(manager.SchedulerDependentManager):
         instance_ref = self.db.instance_get(context, instance_id)
         return self.driver.get_ajax_console(instance_ref)
 
-    @exception.wrap_exception
+    @exception.wrap_exception(notifier=notifier, publisher_id=publisher_id())
     def get_vnc_console(self, context, instance_id):
         """Return connection information for a vnc console."""
         context = context.elevated()
@@ -1015,7 +1086,7 @@ class ComputeManager(manager.SchedulerDependentManager):
 
         return True
 
-    @exception.wrap_exception
+    @exception.wrap_exception(notifier=notifier, publisher_id=publisher_id())
     @checks_instance_lock
     def _detach_volume(self, context, instance_id, volume_id, destroy_bdm):
         """Detach a volume from an instance."""
@@ -1050,7 +1121,7 @@ class ComputeManager(manager.SchedulerDependentManager):
         """
         self.volume_manager.remove_compute_volume(context, volume_id)
 
-    @exception.wrap_exception
+    @exception.wrap_exception(notifier=notifier, publisher_id=publisher_id())
     def compare_cpu(self, context, cpu_info):
         """Checks that the host cpu is compatible with a cpu given by xml.
 
@@ -1061,7 +1132,7 @@ class ComputeManager(manager.SchedulerDependentManager):
         """
         return self.driver.compare_cpu(cpu_info)
 
-    @exception.wrap_exception
+    @exception.wrap_exception(notifier=notifier, publisher_id=publisher_id())
     def create_shared_storage_test_file(self, context):
         """Makes tmpfile under FLAGS.instance_path.
 
@@ -1081,7 +1152,7 @@ class ComputeManager(manager.SchedulerDependentManager):
         os.close(fd)
         return os.path.basename(tmp_file)
 
-    @exception.wrap_exception
+    @exception.wrap_exception(notifier=notifier, publisher_id=publisher_id())
     def check_shared_storage_test_file(self, context, filename):
         """Confirms existence of the tmpfile under FLAGS.instances_path.
 
@@ -1093,7 +1164,7 @@ class ComputeManager(manager.SchedulerDependentManager):
         if not os.path.exists(tmp_file):
             raise exception.FileNotFound(file_path=tmp_file)
 
-    @exception.wrap_exception
+    @exception.wrap_exception(notifier=notifier, publisher_id=publisher_id())
     def cleanup_shared_storage_test_file(self, context, filename):
         """Removes existence of the tmpfile under FLAGS.instances_path.
 
@@ -1104,7 +1175,7 @@ class ComputeManager(manager.SchedulerDependentManager):
         tmp_file = os.path.join(FLAGS.instances_path, filename)
         os.remove(tmp_file)
 
-    @exception.wrap_exception
+    @exception.wrap_exception(notifier=notifier, publisher_id=publisher_id())
     def update_available_resource(self, context):
         """See comments update_resource_info.
 
@@ -1112,6 +1183,7 @@ class ComputeManager(manager.SchedulerDependentManager):
         :returns: See driver.update_available_resource()
 
         """
+        print "UPDATE AVAILABLE"
         return self.driver.update_available_resource(context, self.host)
 
     def pre_live_migration(self, context, instance_id, time=None):
@@ -1197,7 +1269,7 @@ class ComputeManager(manager.SchedulerDependentManager):
                      {"method": "pre_live_migration",
                       "args": {'instance_id': instance_id}})
 
-        except Exception, e:
+        except Exception:
             msg = _("Pre live migration for %(i_name)s failed at %(dest)s")
             LOG.error(msg % locals())
             self.recover_live_migration(context, instance_ref)
diff --git a/nova/console/manager.py b/nova/console/manager.py
index e0db21666474..2c823b7636c6 100644
--- a/nova/console/manager.py
+++ b/nova/console/manager.py
@@ -56,7 +56,7 @@ class ConsoleProxyManager(manager.Manager):
     def init_host(self):
         self.driver.init_host()
 
-    @exception.wrap_exception
+    @exception.wrap_exception()
     def add_console(self, context, instance_id, password=None,
                     port=None, **kwargs):
         instance = self.db.instance_get(context, instance_id)
@@ -83,7 +83,7 @@ class ConsoleProxyManager(manager.Manager):
             self.driver.setup_console(context, console)
         return console['id']
 
-    @exception.wrap_exception
+    @exception.wrap_exception()
     def remove_console(self, context, console_id, **_kwargs):
         try:
             console = self.db.console_get(context, console_id)
diff --git a/nova/console/vmrc_manager.py b/nova/console/vmrc_manager.py
index acecc1075c5b..0b5ce4a4923d 100644
--- a/nova/console/vmrc_manager.py
+++ b/nova/console/vmrc_manager.py
@@ -77,7 +77,7 @@ class ConsoleVMRCManager(manager.Manager):
         self.driver.setup_console(context, console)
         return console
 
-    @exception.wrap_exception
+    @exception.wrap_exception()
     def add_console(self, context, instance_id, password=None,
                     port=None, **kwargs):
         """Adds a console for the instance.
@@ -107,7 +107,7 @@ class ConsoleVMRCManager(manager.Manager):
                                              instance)
         return console['id']
 
-    @exception.wrap_exception
+    @exception.wrap_exception()
     def remove_console(self, context, console_id, **_kwargs):
         """Removes a console entry."""
         try:
diff --git a/nova/db/sqlalchemy/migrate_repo/versions/027_add_provider_firewall_rules.py b/nova/db/sqlalchemy/migrate_repo/versions/027_add_provider_firewall_rules.py
index cb3c73170a8b..7e51d93b7a51 100644
--- a/nova/db/sqlalchemy/migrate_repo/versions/027_add_provider_firewall_rules.py
+++ b/nova/db/sqlalchemy/migrate_repo/versions/027_add_provider_firewall_rules.py
@@ -58,7 +58,7 @@ provider_fw_rules = Table('provider_fw_rules', meta,
         Column('to_port', Integer()),
         Column('cidr',
                String(length=255, convert_unicode=False, assert_unicode=None,
-                      unicode_error=None, _warn_on_bytestring=False)))
+                    unicode_error=None, _warn_on_bytestring=False)))
 
 
 def upgrade(migrate_engine):
diff --git a/nova/exception.py b/nova/exception.py
index 3bc8def6adfb..c6d2bbc3ddf0 100644
--- a/nova/exception.py
+++ b/nova/exception.py
@@ -24,8 +24,9 @@ SHOULD include dedicated exception logging.
 
 """
 
-from nova import log as logging
+from functools import wraps
 
+from nova import log as logging
 
 LOG = logging.getLogger('nova.exception')
 
@@ -81,28 +82,48 @@ def wrap_db_error(f):
     _wrap.func_name = f.func_name
 
 
-def wrap_exception(f, notifier=None, publisher_id=None, event_type=None, level=None):
-    def _wrap(*args, **kw):
-        try:
-            return f(*args, **kw)
-        except Exception, e:
-            if notifier:
-                payload = dict(args=args, exception=e)
-                payload.update(kw)
+def wrap_exception(notifier=None, publisher_id=None, event_type=None, level=None):
+    """This decorator wraps a method to catch any exceptions that may
+    get thrown. It logs the exception as well as optionally sending
+    it to the notification system.
+    """
+    # TODO(sandy): Find a way to import nova.notifier.api so we don't have
+    # to pass it in as a parameter. Otherwise we get a cyclic import of
+    # nova.notifier.api -> nova.utils -> nova.exception :(
+    def inner(f):
+        def wrapped(*args, **kw):
+            try:
+                return f(*args, **kw)
+            except Exception, e:
+                if notifier:
+                    payload = dict(args=args, exception=e)
+                    payload.update(kw)
 
-                if not level:
-                    level = notifier.ERROR
+                    # Use a temp vars so we don't shadow
+                    # our outer definitions.
+                    temp_level = level
+                    if not temp_level:
+                        temp_level = notifier.ERROR
 
-                notifier.safe_notify(publisher_id, event_type, level, payload)
+                    temp_type = event_type
+                    if not temp_type:
+                        # If f has multiple decorators, they must use
+                        # functools.wraps to ensure the name is
+                        # propagated.
+                        temp_type = f.__name__
 
-            if not isinstance(e, Error):
-                #exc_type, exc_value, exc_traceback = sys.exc_info()
-                LOG.exception(_('Uncaught exception'))
-                #logging.error(traceback.extract_stack(exc_traceback))
-                raise Error(str(e))
-            raise
-    _wrap.func_name = f.func_name
-    return _wrap
+                    notifier.safe_notify(publisher_id, temp_type, temp_level,
+                                         payload)
+
+                if not isinstance(e, Error):
+                    #exc_type, exc_value, exc_traceback = sys.exc_info()
+                    LOG.exception(_('Uncaught exception'))
+                    #logging.error(traceback.extract_stack(exc_traceback))
+                    raise Error(str(e))
+                raise
+
+        return wraps(f)(wrapped)
+    return inner
 
 
 class NovaException(Exception):
@@ -567,6 +588,14 @@ class GlobalRoleNotAllowed(NotAllowed):
     message = _("Unable to use global role %(role_id)s")
 
 
+class ImageRotationNotAllowed(NovaException):
+    message = _("Rotation is not allowed for snapshots")
+
+
+class RotationRequiredForBackup(NovaException):
+    message = _("Rotation param is required for backup image_type")
+
+
 #TODO(bcwaldon): EOL this exception!
 class Duplicate(NovaException):
     pass
diff --git a/nova/notifier/api.py b/nova/notifier/api.py
index c13b1d06657b..d388eda96391 100644
--- a/nova/notifier/api.py
+++ b/nova/notifier/api.py
@@ -17,7 +17,9 @@ import uuid
 
 from nova import flags
 from nova import utils
+from nova import log as logging
 
+LOG = logging.getLogger('nova.exception')
 
 FLAGS = flags.FLAGS
 
@@ -47,9 +49,10 @@ def safe_notify(publisher_id, event_type, priority, payload):
     try:
         notify(publisher_id, event_type, notification_level, payload)
     except Exception, e:
-        LOG.exception(_("Problem '%(e)' attempting to "
+        LOG.exception(_("Problem '%(e)s' attempting to "
                         "send to notification system." % locals()))
 
+
 def notify(publisher_id, event_type, priority, payload):
     """
     Sends a notification using the specified driver
diff --git a/nova/rpc.py b/nova/rpc.py
index 2e78a31e79f1..4649ac15736b 100644
--- a/nova/rpc.py
+++ b/nova/rpc.py
@@ -219,7 +219,7 @@ class AdapterConsumer(Consumer):
             return
         self.pool.spawn_n(self._process_data, msg_id, ctxt, method, args)
 
-    @exception.wrap_exception
+    @exception.wrap_exception()
     def _process_data(self, msg_id, ctxt, method, args):
         """Thread that maigcally looks for a method on the proxy
         object and calls it.
diff --git a/nova/tests/api/openstack/fakes.py b/nova/tests/api/openstack/fakes.py
index eeb96cb1278b..26b1de8186eb 100644
--- a/nova/tests/api/openstack/fakes.py
+++ b/nova/tests/api/openstack/fakes.py
@@ -147,6 +147,16 @@ def stub_out_compute_api_snapshot(stubs):
     stubs.Set(nova.compute.API, 'snapshot', snapshot)
 
 
+def stub_out_compute_api_backup(stubs):
+    def backup(self, context, instance_id, name, backup_type, rotation,
+               extra_properties=None):
+        props = dict(instance_id=instance_id, instance_ref=instance_id,
+                     backup_type=backup_type, rotation=rotation)
+        props.update(extra_properties or {})
+        return dict(id='123', status='ACTIVE', name=name, properties=props)
+    stubs.Set(nova.compute.API, 'backup', backup)
+
+
 def stub_out_glance_add_image(stubs, sent_to_glance):
     """
     We return the metadata sent to glance by modifying the sent_to_glance dict
diff --git a/nova/tests/api/openstack/test_images.py b/nova/tests/api/openstack/test_images.py
index 446d68e9edbd..f6115c01e0fb 100644
--- a/nova/tests/api/openstack/test_images.py
+++ b/nova/tests/api/openstack/test_images.py
@@ -340,6 +340,7 @@ class ImageControllerWithGlanceServiceTest(test.TestCase):
         self.fixtures = self._make_image_fixtures()
         fakes.stub_out_glance(self.stubs, initial_fixtures=self.fixtures)
         fakes.stub_out_compute_api_snapshot(self.stubs)
+        fakes.stub_out_compute_api_backup(self.stubs)
 
     def tearDown(self):
         """Run after each test."""
@@ -364,10 +365,10 @@ class ImageControllerWithGlanceServiceTest(test.TestCase):
         response_list = response_dict["images"]
 
         expected = [{'id': 123, 'name': 'public image'},
-                    {'id': 124, 'name': 'queued backup'},
-                    {'id': 125, 'name': 'saving backup'},
-                    {'id': 126, 'name': 'active backup'},
-                    {'id': 127, 'name': 'killed backup'},
+                    {'id': 124, 'name': 'queued snapshot'},
+                    {'id': 125, 'name': 'saving snapshot'},
+                    {'id': 126, 'name': 'active snapshot'},
+                    {'id': 127, 'name': 'killed snapshot'},
                     {'id': 129, 'name': None}]
 
         self.assertDictListMatch(response_list, expected)
@@ -617,14 +618,14 @@ class ImageControllerWithGlanceServiceTest(test.TestCase):
         },
         {
             'id': 124,
-            'name': 'queued backup',
+            'name': 'queued snapshot',
             'updated': self.NOW_API_FORMAT,
             'created': self.NOW_API_FORMAT,
             'status': 'QUEUED',
         },
         {
             'id': 125,
-            'name': 'saving backup',
+            'name': 'saving snapshot',
             'updated': self.NOW_API_FORMAT,
             'created': self.NOW_API_FORMAT,
             'status': 'SAVING',
@@ -632,14 +633,14 @@ class ImageControllerWithGlanceServiceTest(test.TestCase):
         },
         {
             'id': 126,
-            'name': 'active backup',
+            'name': 'active snapshot',
             'updated': self.NOW_API_FORMAT,
             'created': self.NOW_API_FORMAT,
             'status': 'ACTIVE'
         },
         {
             'id': 127,
-            'name': 'killed backup',
+            'name': 'killed snapshot',
             'updated': self.NOW_API_FORMAT,
             'created': self.NOW_API_FORMAT,
             'status': 'FAILED',
@@ -684,7 +685,7 @@ class ImageControllerWithGlanceServiceTest(test.TestCase):
         },
         {
             'id': 124,
-            'name': 'queued backup',
+            'name': 'queued snapshot',
             'serverRef': "http://localhost:8774/v1.1/servers/42",
             'updated': self.NOW_API_FORMAT,
             'created': self.NOW_API_FORMAT,
@@ -706,7 +707,7 @@ class ImageControllerWithGlanceServiceTest(test.TestCase):
         },
         {
             'id': 125,
-            'name': 'saving backup',
+            'name': 'saving snapshot',
             'serverRef': "http://localhost:8774/v1.1/servers/42",
             'updated': self.NOW_API_FORMAT,
             'created': self.NOW_API_FORMAT,
@@ -729,7 +730,7 @@ class ImageControllerWithGlanceServiceTest(test.TestCase):
         },
         {
             'id': 126,
-            'name': 'active backup',
+            'name': 'active snapshot',
             'serverRef': "http://localhost:8774/v1.1/servers/42",
             'updated': self.NOW_API_FORMAT,
             'created': self.NOW_API_FORMAT,
@@ -751,7 +752,7 @@ class ImageControllerWithGlanceServiceTest(test.TestCase):
         },
         {
             'id': 127,
-            'name': 'killed backup',
+            'name': 'killed snapshot',
             'serverRef': "http://localhost:8774/v1.1/servers/42",
             'updated': self.NOW_API_FORMAT,
             'created': self.NOW_API_FORMAT,
@@ -969,8 +970,7 @@ class ImageControllerWithGlanceServiceTest(test.TestCase):
         self.assertEqual(res.status_int, 404)
 
     def test_create_image(self):
-
-        body = dict(image=dict(serverId='123', name='Backup 1'))
+        body = dict(image=dict(serverId='123', name='Snapshot 1'))
         req = webob.Request.blank('/v1.0/images')
         req.method = 'POST'
         req.body = json.dumps(body)
@@ -978,9 +978,95 @@ class ImageControllerWithGlanceServiceTest(test.TestCase):
         response = req.get_response(fakes.wsgi_app())
         self.assertEqual(200, response.status_int)
 
+    def test_create_snapshot_no_name(self):
+        """Name is required for snapshots"""
+        body = dict(image=dict(serverId='123'))
+        req = webob.Request.blank('/v1.0/images')
+        req.method = 'POST'
+        req.body = json.dumps(body)
+        req.headers["content-type"] = "application/json"
+        response = req.get_response(fakes.wsgi_app())
+        self.assertEqual(400, response.status_int)
+
+    def test_create_backup_no_name(self):
+        """Name is also required for backups"""
+        body = dict(image=dict(serverId='123', image_type='backup',
+                               backup_type='daily', rotation=1))
+        req = webob.Request.blank('/v1.0/images')
+        req.method = 'POST'
+        req.body = json.dumps(body)
+        req.headers["content-type"] = "application/json"
+        response = req.get_response(fakes.wsgi_app())
+        self.assertEqual(400, response.status_int)
+
+    def test_create_backup_with_rotation_and_backup_type(self):
+        """The happy path for creating backups
+
+        Creating a backup is an admin-only operation, as opposed to snapshots
+        which are available to anybody.
+        """
+        # FIXME(sirp): teardown needed?
+        FLAGS.allow_admin_api = True
+
+        # FIXME(sirp): should the fact that backups are admin_only be a FLAG
+        body = dict(image=dict(serverId='123', image_type='backup',
+                               name='Backup 1',
+                               backup_type='daily', rotation=1))
+        req = webob.Request.blank('/v1.0/images')
+        req.method = 'POST'
+        req.body = json.dumps(body)
+        req.headers["content-type"] = "application/json"
+        response = req.get_response(fakes.wsgi_app())
+        self.assertEqual(200, response.status_int)
+
+    def test_create_backup_no_rotation(self):
+        """Rotation is required for backup requests"""
+        # FIXME(sirp): teardown needed?
+        FLAGS.allow_admin_api = True
+
+        # FIXME(sirp): should the fact that backups are admin_only be a FLAG
+        body = dict(image=dict(serverId='123', name='daily',
+                               image_type='backup', backup_type='daily'))
+        req = webob.Request.blank('/v1.0/images')
+        req.method = 'POST'
+        req.body = json.dumps(body)
+        req.headers["content-type"] = "application/json"
+        response = req.get_response(fakes.wsgi_app())
+        self.assertEqual(400, response.status_int)
+
+    def test_create_backup_no_backup_type(self):
+        """Backup Type (daily or weekly) is required for backup requests"""
+        # FIXME(sirp): teardown needed?
+        FLAGS.allow_admin_api = True
+
+        # FIXME(sirp): should the fact that backups are admin_only be a FLAG
+        body = dict(image=dict(serverId='123', name='daily',
+                               image_type='backup', rotation=1))
+        req = webob.Request.blank('/v1.0/images')
+        req.method = 'POST'
+        req.body = json.dumps(body)
+        req.headers["content-type"] = "application/json"
+        response = req.get_response(fakes.wsgi_app())
+        self.assertEqual(400, response.status_int)
+
+    def test_create_image_with_invalid_image_type(self):
+        """Valid image_types are snapshot | daily | weekly"""
+        # FIXME(sirp): teardown needed?
+        FLAGS.allow_admin_api = True
+
+        # FIXME(sirp): should the fact that backups are admin_only be a FLAG
+        body = dict(image=dict(serverId='123', image_type='monthly',
+                               rotation=1))
+        req = webob.Request.blank('/v1.0/images')
+        req.method = 'POST'
+        req.body = json.dumps(body)
+        req.headers["content-type"] = "application/json"
+        response = req.get_response(fakes.wsgi_app())
+        self.assertEqual(400, response.status_int)
+
     def test_create_image_no_server_id(self):
 
-        body = dict(image=dict(name='Backup 1'))
+        body = dict(image=dict(name='Snapshot 1'))
         req = webob.Request.blank('/v1.0/images')
         req.method = 'POST'
         req.body = json.dumps(body)
@@ -990,7 +1076,7 @@ class ImageControllerWithGlanceServiceTest(test.TestCase):
 
     def test_create_image_v1_1(self):
 
-        body = dict(image=dict(serverRef='123', name='Backup 1'))
+        body = dict(image=dict(serverRef='123', name='Snapshot 1'))
         req = webob.Request.blank('/v1.1/images')
         req.method = 'POST'
         req.body = json.dumps(body)
@@ -1024,7 +1110,7 @@ class ImageControllerWithGlanceServiceTest(test.TestCase):
 
     def test_create_image_v1_1_xml_serialization(self):
 
-        body = dict(image=dict(serverRef='123', name='Backup 1'))
+        body = dict(image=dict(serverRef='123', name='Snapshot 1'))
         req = webob.Request.blank('/v1.1/images')
         req.method = 'POST'
         req.body = json.dumps(body)
@@ -1038,7 +1124,7 @@ class ImageControllerWithGlanceServiceTest(test.TestCase):
             <image
                    created="None"
                    id="123"
-                   name="Backup 1"
+                   name="Snapshot 1"
                    serverRef="http://localhost/v1.1/servers/123"
                    status="ACTIVE"
                    updated="None"
@@ -1057,7 +1143,7 @@ class ImageControllerWithGlanceServiceTest(test.TestCase):
 
     def test_create_image_v1_1_no_server_ref(self):
 
-        body = dict(image=dict(name='Backup 1'))
+        body = dict(image=dict(name='Snapshot 1'))
         req = webob.Request.blank('/v1.1/images')
         req.method = 'POST'
         req.body = json.dumps(body)
@@ -1084,19 +1170,21 @@ class ImageControllerWithGlanceServiceTest(test.TestCase):
                     status='active', properties={})
         image_id += 1
 
-        # Backup for User 1
+        # Snapshot for User 1
         server_ref = 'http://localhost:8774/v1.1/servers/42'
-        backup_properties = {'instance_ref': server_ref, 'user_id': '1'}
+        snapshot_properties = {'instance_ref': server_ref, 'user_id': '1'}
         for status in ('queued', 'saving', 'active', 'killed'):
-            add_fixture(id=image_id, name='%s backup' % status,
+            add_fixture(id=image_id, name='%s snapshot' % status,
                         is_public=False, status=status,
-                        properties=backup_properties)
+                        properties=snapshot_properties)
             image_id += 1
 
-        # Backup for User 2
-        other_backup_properties = {'instance_id': '43', 'user_id': '2'}
-        add_fixture(id=image_id, name='someone elses backup', is_public=False,
-                    status='active', properties=other_backup_properties)
+        # Snapshot for User 2
+        other_snapshot_properties = {'instance_id': '43', 'user_id': '2'}
+        add_fixture(id=image_id, name='someone elses snapshot',
+                    is_public=False, status='active',
+                    properties=other_snapshot_properties)
+
         image_id += 1
 
         # Image without a name
diff --git a/nova/virt/libvirt/connection.py b/nova/virt/libvirt/connection.py
index fadf77629b63..44a11b4e3a23 100644
--- a/nova/virt/libvirt/connection.py
+++ b/nova/virt/libvirt/connection.py
@@ -331,7 +331,7 @@ class LibvirtConnection(driver.ComputeDriver):
         if os.path.exists(target):
             shutil.rmtree(target)
 
-    @exception.wrap_exception
+    @exception.wrap_exception()
     def attach_volume(self, instance_name, device_path, mountpoint):
         virt_dom = self._lookup_by_name(instance_name)
         mount_device = mountpoint.rpartition("/")[2]
@@ -375,7 +375,7 @@ class LibvirtConnection(driver.ComputeDriver):
             if doc is not None:
                 doc.freeDoc()
 
-    @exception.wrap_exception
+    @exception.wrap_exception()
     def detach_volume(self, instance_name, mountpoint):
         virt_dom = self._lookup_by_name(instance_name)
         mount_device = mountpoint.rpartition("/")[2]
@@ -384,7 +384,7 @@ class LibvirtConnection(driver.ComputeDriver):
             raise exception.DiskNotFound(location=mount_device)
         virt_dom.detachDevice(xml)
 
-    @exception.wrap_exception
+    @exception.wrap_exception()
     def snapshot(self, instance, image_href):
         """Create snapshot from a running VM instance.
 
@@ -460,7 +460,7 @@ class LibvirtConnection(driver.ComputeDriver):
         # Clean up
         shutil.rmtree(temp_dir)
 
-    @exception.wrap_exception
+    @exception.wrap_exception()
     def reboot(self, instance):
         """Reboot a virtual machine, given an instance reference.
 
@@ -501,31 +501,31 @@ class LibvirtConnection(driver.ComputeDriver):
         timer = utils.LoopingCall(_wait_for_reboot)
         return timer.start(interval=0.5, now=True)
 
-    @exception.wrap_exception
+    @exception.wrap_exception()
     def pause(self, instance, callback):
         """Pause VM instance"""
         dom = self._lookup_by_name(instance.name)
         dom.suspend()
 
-    @exception.wrap_exception
+    @exception.wrap_exception()
     def unpause(self, instance, callback):
         """Unpause paused VM instance"""
         dom = self._lookup_by_name(instance.name)
         dom.resume()
 
-    @exception.wrap_exception
+    @exception.wrap_exception()
     def suspend(self, instance, callback):
         """Suspend the specified instance"""
         dom = self._lookup_by_name(instance.name)
         dom.managedSave(0)
 
-    @exception.wrap_exception
+    @exception.wrap_exception()
     def resume(self, instance, callback):
         """resume the specified instance"""
         dom = self._lookup_by_name(instance.name)
         dom.create()
 
-    @exception.wrap_exception
+    @exception.wrap_exception()
     def rescue(self, instance):
         """Loads a VM using rescue images.
 
@@ -563,7 +563,7 @@ class LibvirtConnection(driver.ComputeDriver):
         timer = utils.LoopingCall(_wait_for_rescue)
         return timer.start(interval=0.5, now=True)
 
-    @exception.wrap_exception
+    @exception.wrap_exception()
     def unrescue(self, instance):
         """Reboot the VM which is being rescued back into primary images.
 
@@ -573,13 +573,13 @@ class LibvirtConnection(driver.ComputeDriver):
         """
         self.reboot(instance)
 
-    @exception.wrap_exception
+    @exception.wrap_exception()
     def poll_rescued_instances(self, timeout):
         pass
 
     # NOTE(ilyaalekseyev): Implementation like in multinics
     # for xenapi(tr3buchet)
-    @exception.wrap_exception
+    @exception.wrap_exception()
     def spawn(self, instance, network_info=None, block_device_mapping=None):
         xml = self.to_xml(instance, False, network_info=network_info,
                           block_device_mapping=block_device_mapping)
@@ -642,7 +642,7 @@ class LibvirtConnection(driver.ComputeDriver):
         LOG.info(_('Contents of file %(fpath)s: %(contents)r') % locals())
         return contents
 
-    @exception.wrap_exception
+    @exception.wrap_exception()
     def get_console_output(self, instance):
         console_log = os.path.join(FLAGS.instances_path, instance['name'],
                                    'console.log')
@@ -663,7 +663,7 @@ class LibvirtConnection(driver.ComputeDriver):
 
         return self._dump_file(fpath)
 
-    @exception.wrap_exception
+    @exception.wrap_exception()
     def get_ajax_console(self, instance):
         def get_open_port():
             start_port, end_port = FLAGS.ajaxterm_portrange.split("-")
@@ -704,7 +704,7 @@ class LibvirtConnection(driver.ComputeDriver):
     def get_host_ip_addr(self):
         return FLAGS.my_ip
 
-    @exception.wrap_exception
+    @exception.wrap_exception()
     def get_vnc_console(self, instance):
         def get_vnc_port_for_instance(instance_name):
             virt_dom = self._lookup_by_name(instance_name)
diff --git a/run_tests.sh b/run_tests.sh
index 2ea221ae31b6..ddeb1dc4a0b5 100755
--- a/run_tests.sh
+++ b/run_tests.sh
@@ -6,7 +6,8 @@ function usage {
   echo ""
   echo "  -V, --virtual-env        Always use virtualenv.  Install automatically if not present"
   echo "  -N, --no-virtual-env     Don't use virtualenv.  Run tests in local environment"
-  echo "  -r, --recreate-db        Recreate the test database."
+  echo "  -r, --recreate-db        Recreate the test database (deprecated, as this is now the default)."
+  echo "  -n, --no-recreate-db     Don't recreate the test database."
   echo "  -x, --stop               Stop running tests after the first error or failure."
   echo "  -f, --force              Force a clean re-build of the virtual environment. Useful when dependencies have been added."
   echo "  -p, --pep8               Just run pep8"
@@ -25,6 +26,7 @@ function process_option {
     -V|--virtual-env) let always_venv=1; let never_venv=0;;
     -N|--no-virtual-env) let always_venv=0; let never_venv=1;;
     -r|--recreate-db) let recreate_db=1;;
+    -n|--no-recreate-db) let recreate_db=0;;
     -f|--force) let force=1;;
     -p|--pep8) let just_pep8=1;;
     -*) noseopts="$noseopts $1";;
@@ -41,7 +43,7 @@ noseargs=
 noseopts=
 wrapper=""
 just_pep8=0
-recreate_db=0
+recreate_db=1
 
 for arg in "$@"; do
   process_option $arg