diff --git a/xCAT-server/lib/xcat/plugins/rollupdate.pm b/xCAT-server/lib/xcat/plugins/rollupdate.pm
index d59496e84..58662431b 100644
--- a/xCAT-server/lib/xcat/plugins/rollupdate.pm
+++ b/xCAT-server/lib/xcat/plugins/rollupdate.pm
@@ -136,9 +136,6 @@ sub process_request {
     $::SUBREQ   = shift;
     my $ret;
 
-    # ENV variable required by all LL commands
-    $ENV{'EXTSHM'} = 'ON';
-
     # globals used by all subroutines.
     $::command   = $::request->{command}->[0];
     $::args      = $::request->{arg};
diff --git a/xCAT-server/sbin/xcatd b/xCAT-server/sbin/xcatd
index cf0b58b0d..f3e9493b7 100755
--- a/xCAT-server/sbin/xcatd
+++ b/xCAT-server/sbin/xcatd
@@ -6,6 +6,9 @@ use Carp qw(cluck confess);
 BEGIN
 {
     $::XCATROOT = $ENV{'XCATROOT'} ? $ENV{'XCATROOT'} : '/opt/xcat';
+     # Required when using DB2 as the xCAT database:
+     $ENV{'DB2INSTANCE'} = 'xcatdb';
+     $ENV{'EXTSHM'} = 'ON';
 }
 
 # if AIX - make sure we include perl 5.8.2 in INC path.