diff --git a/nova/scheduler/simple.py b/nova/scheduler/simple.py
index 48be4c1a6..6e77debf3 100644
--- a/nova/scheduler/simple.py
+++ b/nova/scheduler/simple.py
@@ -27,10 +27,10 @@ from nova.scheduler import driver
 from nova.scheduler import chance
 
 FLAGS = flags.FLAGS
-flags.DEFINE_integer("max_instances", 16,
-                     "maximum number of instances to allow per host")
-flags.DEFINE_integer("max_volumes", 100,
-                     "maximum number of volumes to allow per host")
+flags.DEFINE_integer("max_cores", 16,
+                     "maximum number of instance cores to allow per host")
+flags.DEFINE_integer("max_gigabytes", 10000,
+                     "maximum number of volume gigabytes to allow per host")
 flags.DEFINE_integer("max_networks", 1000,
                      "maximum number of networks to allow per host")
 
@@ -42,9 +42,9 @@ class SimpleScheduler(chance.ChanceScheduler):
 
         results = db.service_get_all_compute_sorted(context)
         for result in results:
-            (service, instance_count) = result
-            if instance_count >= FLAGS.max_instances:
-                raise driver.NoValidHost("All hosts have too many instances")
+            (service, instance_cores) = result
+            if instance_cores >= FLAGS.max_cores:
+                raise driver.NoValidHost("All hosts have too many cores")
             if self.service_is_up(service):
                 db.instance_update(context,
                                    instance_id,
@@ -57,13 +57,13 @@ class SimpleScheduler(chance.ChanceScheduler):
 
         results = db.service_get_all_volume_sorted(context)
         for result in results:
-            (service, instance_count) = result
-            if instance_count >= FLAGS.max_volumes:
-                raise driver.NoValidHost("All hosts have too many volumes")
+            (service, volume_gigabytes) = result
+            if volume_gigabytes >= FLAGS.max_gigabytes:
+                raise driver.NoValidHost("All hosts have too many gigabytes")
             if self.service_is_up(service):
-                db.instance_update(context,
-                                   volume_id,
-                                   {'host': service['host']})
+                db.volume_update(context,
+                                 volume_id,
+                                 {'host': service['host']})
                 return service['host']
         raise driver.NoValidHost("No hosts found")