diff --git a/setup/so-functions b/setup/so-functions
index 8a751a4ad..214896572 100755
--- a/setup/so-functions
+++ b/setup/so-functions
@@ -1012,7 +1012,7 @@ create_repo() {
 
 detect_cloud() {
   echo "Testing if setup is running on a cloud instance..." | tee -a "$setup_log"
-  if ( curl --fail -s -m 5 http://169.254.169.254/latest/meta-data/instance-id > /dev/null ) || ( dmidecode -s bios-vendor | grep -q Google > /dev/null); then export is_cloud="true"; fi
+  if ( curl --fail -s -m 5 http://169.254.169.254/latest/meta-data/instance-id > /dev/null ) || ( dmidecode -s bios-vendor | grep -q Google > /dev/null) || [ -f /var/log/waagent.log ]; then export is_cloud="true"; fi
 }
 
 detect_os() {