diff --git a/che-launcher/launcher.sh b/che-launcher/launcher.sh
index 6f30e3a4..62afa723 100755
--- a/che-launcher/launcher.sh
+++ b/che-launcher/launcher.sh
@@ -59,16 +59,25 @@ init_global_variables() {
   DEFAULT_CHE_RESTART_POLICY="no"
   DEFAULT_CHE_USER="root"
   DEFAULT_CHE_LOG_LEVEL="info"
-  DEFAULT_CHE_DATA_FOLDER="/home/user/che"
   DEFAULT_CHE_DEBUG_SERVER="false"
   DEFAULT_CHE_DEBUG_SERVER_PORT="8000"
   DEFAULT_CHE_DEBUG_SERVER_SUSPEND="false"
   DEFAULT_CHE_DOCKER_MACHINE_HOST_EXTERNAL=$(get_docker_external_hostname)
 
   # Clean eventual user provided paths
-  CHE_CONF_FOLDER=${CHE_CONF_FOLDER:+$(get_converted_and_clean_path "${CHE_CONF_FOLDER}")}
-  CHE_DATA_FOLDER=${CHE_DATA_FOLDER:+$(get_converted_and_clean_path "${CHE_DATA_FOLDER}")}
-  CHE_LOCAL_BINARY=${CHE_LOCAL_BINARY:+$(get_converted_and_clean_path "${CHE_LOCAL_BINARY}")}
+  CHE_CONF=${CHE_CONF:+$(get_converted_and_clean_path "${CHE_CONF}")}
+  CHE_CONF_LOCATION="${CHE_CONF}":"${CHE_CONF}:Z"
+  # "<-- Added comment with quote to fix broken syntax highlighting
+
+  DEFAULT_CHE_DATA_FOLDER="/home/user/che"
+  CHE_DATA=${CHE_DATA:+$(get_converted_and_clean_path "${CHE_DATA}")}
+  CHE_DATA=${CHE_DATA:-${DEFAULT_CHE_DATA_FOLDER}}
+  CHE_DATA_LOCATION="${CHE_DATA}":"/data:Z"
+  # "<-- Added comment with quote to fix broken syntax highlighting
+
+  CHE_ASSEMBLY=${CHE_ASSEMBLY:+$(get_converted_and_clean_path "${CHE_ASSEMBLY}")}
+  CHE_ASSEMBLY_LOCATION="${CHE_ASSEMBLY}":"${CHE_ASSEMBLY}:Z"
+  # "<-- Added comment with quote to fix broken syntax highlighting
 
   CHE_PRODUCT_NAME=${CHE_PRODUCT_NAME:-${DEFAULT_CHE_PRODUCT_NAME}}
   CHE_MINI_PRODUCT_NAME=${CHE_MINI_PRODUCT_NAME:-${DEFAULT_CHE_MINI_PRODUCT_NAME}}
@@ -81,27 +90,11 @@ init_global_variables() {
   CHE_USER=${CHE_USER:-${DEFAULT_CHE_USER}}
   CHE_HOST_IP=${CHE_HOST_IP:-${DEFAULT_DOCKER_HOST_IP}}
   CHE_LOG_LEVEL=${CHE_LOG_LEVEL:-${DEFAULT_CHE_LOG_LEVEL}}
-  CHE_DATA_FOLDER=${CHE_DATA_FOLDER:-${DEFAULT_CHE_DATA_FOLDER}}
   CHE_DEBUG_SERVER=${CHE_DEBUG_SERVER:-${DEFAULT_CHE_DEBUG_SERVER}}
   CHE_DEBUG_SERVER_PORT=${CHE_DEBUG_SERVER_PORT:-${DEFAULT_CHE_DEBUG_SERVER_PORT}}
   CHE_DEBUG_SERVER_SUSPEND=${CHE_DEBUG_SERVER_SUSPEND:-${DEFAULT_CHE_DEBUG_SERVER_SUSPEND}}
   CHE_DOCKER_MACHINE_HOST_EXTERNAL=${CHE_DOCKER_MACHINE_HOST_EXTERNAL:-${DEFAULT_CHE_DOCKER_MACHINE_HOST_EXTERNAL}}
 
-  CHE_CONF_LOCATION="${CHE_CONF_FOLDER}":"/conf:Z"
-  CHE_STORAGE_LOCATION="${CHE_DATA_FOLDER}/storage":"/home/user/che/storage:Z"
-  CHE_WORKSPACE_LOCATION="${CHE_DATA_FOLDER}/workspaces":"/home/user/che/workspaces:Z"
-  CHE_LOCAL_BINARY_LOCATION="${CHE_LOCAL_BINARY}":"/home/user/che:Z"
-
-  if [ "${CHE_LOG_LEVEL}" = "debug" ]; then
-    CHE_DEBUG_OPTION="--log_level:debug"
-  else
-    CHE_DEBUG_OPTION=""
-  fi
-
-  if [ "${CHE_DEBUG_SERVER}" = "true" ]; then
-    CHE_DEBUG_OPTION="${CHE_DEBUG_OPTION} --debug"
-  fi
-
   USAGE="
 Usage:
   docker run --rm -t -v /var/run/docker.sock:/var/run/docker.sock ${LAUNCHER_IMAGE_NAME} [COMMAND]
diff --git a/che-launcher/launcher_cmds.sh b/che-launcher/launcher_cmds.sh
index b7a29b8e..a253570c 100644
--- a/che-launcher/launcher_cmds.sh
+++ b/che-launcher/launcher_cmds.sh
@@ -28,12 +28,7 @@ start_che_server() {
   fi
 
   info "${CHE_PRODUCT_NAME}: Starting container..."
-  docker_run_with_debug "${CHE_SERVER_IMAGE_NAME}":"${CHE_VERSION}" \
-                          --remote:"${CHE_HOST_IP}" \
-                          -s:uid \
-                          -s:client \
-                          ${CHE_DEBUG_OPTION} \
-                          run > /dev/null
+  docker_run_with_debug "${CHE_SERVER_IMAGE_NAME}":"${CHE_VERSION}" > /dev/null
 
   CURRENT_CHE_SERVER_CONTAINER_ID=$(get_che_server_container_id ${CHE_SERVER_CONTAINER_NAME})
   wait_until_container_is_running 10 ${CURRENT_CHE_SERVER_CONTAINER_ID}
@@ -70,7 +65,7 @@ stop_che_server() {
     info "${CHE_PRODUCT_NAME}: Container $CURRENT_CHE_SERVER_CONTAINER_ID is not running. Nothing to do."
   else
     info "${CHE_PRODUCT_NAME}: Stopping server..."
-    docker exec ${CURRENT_CHE_SERVER_CONTAINER_ID} /home/user/che/bin/che.sh -c -s:uid stop > /dev/null
+    docker stop ${CURRENT_CHE_SERVER_CONTAINER_ID} > /dev/null
     wait_until_container_is_stopped 60 ${CURRENT_CHE_SERVER_CONTAINER_ID}
     if che_container_is_running ${CURRENT_CHE_SERVER_CONTAINER_ID}; then
       error_exit "${CHE_PRODUCT_NAME}: Timeout waiting for the ${CHE_PRODUCT_NAME} container to stop."
@@ -123,8 +118,7 @@ print_debug_info() {
   IFS=$'\n'
   for CHE_SERVER_CONTAINER_ID in $CURRENT_CHE_INSTANCES; do
     info ""
-    info "--------- CHE INSTANCE INFO  ----------" 
-    info "CHE SERVER CONTAINER ID   = $CHE_SERVER_CONTAINER_ID"
+    info "--------- CHE INSTANCE: $CHE_SERVER_CONTAINER_ID" 
     CURRENT_CHE_SERVER_CONTAINER_NAME=$(docker inspect --format='{{.Name}}' ${CHE_SERVER_CONTAINER_ID} | cut -f2 -d"/") 
     info "CHE SERVER CONTAINER NANE = $CURRENT_CHE_SERVER_CONTAINER_NAME"
     info "CHE CONTAINER EXISTS      = $(che_container_exist $CHE_SERVER_CONTAINER_ID && echo "YES" || echo "NO")"
@@ -149,18 +143,18 @@ print_debug_info() {
   info ""
   info ""
   info "----  CURRENT COMMAND LINE OPTIONS  ---" 
-  info "CHE_PORT                  = ${CHE_PORT}"
   info "CHE_VERSION               = ${CHE_VERSION}"
+  info "CHE_DATA                  = ${CHE_DATA}"
+  info "CHE_CONF                  = ${CHE_CONF:-not set}"
+  info "CHE_ASSEMBLY              = ${CHE_ASSEMBLY:-not set}"
+  info "CHE_PORT                  = ${CHE_PORT}"
+  info "CHE_HOST_IP               = ${CHE_HOST_IP}"
   info "CHE_RESTART_POLICY        = ${CHE_RESTART_POLICY}"
   info "CHE_USER                  = ${CHE_USER}"
-  info "CHE_HOST_IP               = ${CHE_HOST_IP}"
   info "CHE_LOG_LEVEL             = ${CHE_LOG_LEVEL}"
   info "CHE_DEBUG_SERVER          = ${CHE_DEBUG_SERVER}"
   info "CHE_DEBUG_SERVER_PORT     = ${CHE_DEBUG_SERVER_PORT}"
   info "CHE_HOSTNAME              = ${CHE_HOSTNAME}"
-  info "CHE_DATA_FOLDER           = ${CHE_DATA_FOLDER}"
-  info "CHE_CONF_FOLDER           = ${CHE_CONF_FOLDER:-not set}"
-  info "CHE_LOCAL_BINARY          = ${CHE_LOCAL_BINARY:-not set}"
   info "CHE_SERVER_CONTAINER_NAME = ${CHE_SERVER_CONTAINER_NAME}"
   info "CHE_SERVER_IMAGE_NAME     = ${CHE_SERVER_IMAGE_NAME}"
 }
\ No newline at end of file
diff --git a/che-launcher/launcher_funcs.sh b/che-launcher/launcher_funcs.sh
index 6013af4b..eaae3933 100644
--- a/che-launcher/launcher_funcs.sh
+++ b/che-launcher/launcher_funcs.sh
@@ -107,40 +107,40 @@ docker_run() {
    ENV_FILE=$(get_list_of_che_system_environment_variables)
    docker run -d --name "${CHE_SERVER_CONTAINER_NAME}" \
     -v /var/run/docker.sock:/var/run/docker.sock:Z \
-    -v /home/user/che/lib:/home/user/che/lib-copy:Z \
+    -v "$CHE_DATA_LOCATION" \
     -p "${CHE_PORT}":8080 \
     --restart="${CHE_RESTART_POLICY}" \
     --user="${CHE_USER}" \
-    --env-file=$ENV_FILE \
-    -v "$CHE_STORAGE_LOCATION" "$@"
+    -e "CHE_LOG_LEVEL=${CHE_LOG_LEVEL}" \
+    -e "CHE_IP=$CHE_HOST_IP" \
+    --env-file=$ENV_FILE "$@"
  
    rm -rf $ENV_FILE > /dev/null
 }
 
-docker_run_with_storage() {
+docker_run_if_in_vm() {
+  # If the container will run inside of a VM, additional parameters must be set.
+  # Setting CHE_IN_VM=true will have the che-server container set the values.
   if is_docker_for_mac || is_docker_for_windows || is_boot2docker; then
-    # If on docker for mac or windows, then we have to use these special parameters
-    docker_run -e "CHE_WORKSPACE_STORAGE=$CHE_DATA_FOLDER/workspaces" \
-               -e "CHE_WORKSPACE_STORAGE_CREATE_FOLDERS=false" "$@"
+    docker_run -e "CHE_IN_VM=true" "$@"
   else
-    # Otherwise, mount the full directory
-    docker_run -v "$CHE_WORKSPACE_LOCATION" "$@"
+    docker_run "$@"
   fi
 }
 
-docker_run_with_local_binary() {
-  if has_local_binary_path; then
-    docker_run_with_storage -v "$CHE_LOCAL_BINARY_LOCATION" "$@"
+docker_run_with_assembly() {
+  if has_assembly; then
+    docker_run_if_in_vm -v "$CHE_ASSEMBLY_LOCATION" -e "CHE_ASSEMBLY=${CHE_ASSEMBLY}" "$@"
   else
-    docker_run_with_storage "$@"
+    docker_run_if_in_vm "$@"
   fi
 }
 
 docker_run_with_conf() {
   if has_che_conf_path; then
-    docker_run_with_local_binary -v "$CHE_CONF_LOCATION" -e "CHE_LOCAL_CONF_DIR=/conf" "$@"
+    docker_run_with_assembly -v "$CHE_CONF_LOCATION" -e "CHE_LOCAL_CONF_DIR=${CHE_CONF}" "$@"
   else
-    docker_run_with_local_binary "$@"
+    docker_run_with_assembly "$@"
   fi
 }
 
@@ -154,9 +154,12 @@ docker_run_with_external_hostname() {
 
 docker_run_with_debug() {
   if has_debug && has_debug_suspend; then
-    docker_run_with_external_hostname -p "${CHE_DEBUG_SERVER_PORT}":8000 -e "JPDA_SUSPEND=y" "$@"
+    docker_run_with_external_hostname -p "${CHE_DEBUG_SERVER_PORT}":8000 \
+                                      -e "CHE_DEBUG_SERVER=true" \
+                                      -e "JPDA_SUSPEND=y" "$@"
   elif has_debug; then
-    docker_run_with_external_hostname -p "${CHE_DEBUG_SERVER_PORT}":8000 "$@"
+    docker_run_with_external_hostname -p "${CHE_DEBUG_SERVER_PORT}":8000 \
+                                      -e "CHE_DEBUG_SERVER=true" "$@"
   else
     docker_run_with_external_hostname "$@"
   fi
@@ -179,15 +182,15 @@ has_debug() {
 }
 
 has_che_conf_path() {
-  if [ "${CHE_CONF_FOLDER}" = "" ]; then
+  if [ "${CHE_CONF}" = "" ]; then
     return 1
   else
     return 0
   fi
 }
 
-has_local_binary_path() {
-  if [ "${CHE_LOCAL_BINARY}" = "" ]; then
+has_assembly() {
+  if [ "${CHE_ASSEMBLY}" = "" ]; then
     return 1
   else
     return 0
@@ -354,13 +357,13 @@ get_container_debug() {
 }
 
 get_che_container_host_ip_from_container() {
-  BINDS=$(docker inspect --format="{{.Config.Cmd}}" "${1}" | cut -d '[' -f 2 | cut -d ']' -f 1)
+  BINDS=$(docker inspect --format="{{.Config.Env}}" "${1}" | cut -d '[' -f 2 | cut -d ']' -f 1)
 
   IFS=$' '
   for SINGLE_BIND in $BINDS; do
     case $SINGLE_BIND in
-      *--remote*)
-        echo $SINGLE_BIND | cut -f2 -d":"
+      *CHE_IP*)
+        echo $SINGLE_BIND | cut -f2 -d=
       ;;
       *)
       ;;