diff --git a/.github/workflows/packMachines.yml b/.github/workflows/packMachines.yml
index 2e76499..b55ab5a 100644
--- a/.github/workflows/packMachines.yml
+++ b/.github/workflows/packMachines.yml
@@ -77,7 +77,6 @@ jobs:
               echo "ARM_TENANT_ID=${{ secrets.AZURE_TENANT_ID }}" >> $GITHUB_ENV
         shell: bash 
 
-
       - name: Set up Packer
         uses: hashicorp/setup-packer@1aa358be5cf73883762b302a3a03abd66e75b232
         with:
@@ -180,24 +179,37 @@ jobs:
             echo "ARM_TENANT_ID=${{ secrets.AZURE_TENANT_ID }}" >> $GITHUB_ENV
         shell: bash
         
+      - name: Install QEMU
+        run: sudo apt-get update && sudo apt-get install -y qemu-system-x86 openssl whois
+
+      - name: Generate user-data with hashed password
+        working-directory: ./packer/ubuntu-server
+        run: |
+          plain_pass=$(openssl rand -base64 12)
+          echo "Random password: $plain_pass"
+          echo "PLAIN_PASSWORD=$plain_pass" >> $GITHUB_ENV
+          hashed_pass=$(mkpasswd --method=SHA-512 "$plain_pass")
+          sed -i "s|{{password_hash}}|$hashed_pass|g"  http/user-data
+          echo "user-data file is ready with hashed password."
+
       - name: Set up Packer
         uses: hashicorp/setup-packer@1aa358be5cf73883762b302a3a03abd66e75b232
         with:
           version: 1.11.2
 
-      - name: Install QEMU
-        run: sudo apt-get update && sudo apt-get install -y qemu-system-x86
-
+      
       - name: Run `packer init ${{ inputs.service }}`
         working-directory: ./packer/ubuntu-server
         run: packer init .
     
       - name: Run `packer validate ${{ inputs.service }}`
         working-directory: ./packer/ubuntu-server
-        run: packer validate --var dibbs_service=${{ inputs.service }} --var dibbs_version=${{ inputs.version }} .
+        run: packer validate --var dibbs_service=${{ inputs.service }} --var dibbs_version=${{ inputs.version }}  --var ssh_password='${{ env.PLAIN_PASSWORD }}' .
+
 
       - name: Run `packer build ${{ inputs.service }}`
         working-directory: ./packer/ubuntu-server
-        run: packer build --var dibbs_service=${{ inputs.service }} --var dibbs_version=${{ inputs.version }} .
+        run: packer build --var dibbs_service=${{ inputs.service }} --var dibbs_version=${{ inputs.version }}  --var ssh_password='${{ env.PLAIN_PASSWORD }}' .
+
 
   ## TODO: Decide how to export artifact.
\ No newline at end of file
diff --git a/packer/ubuntu-server/jails/jail.local b/packer/ubuntu-server/jails/jail.local
index e9c4d77..1263b8e 100644
--- a/packer/ubuntu-server/jails/jail.local
+++ b/packer/ubuntu-server/jails/jail.local
@@ -22,7 +22,7 @@ mta = sendmail
 # configured above.
 action_mw = %(action_)s
             %(mta)s-whois[sender="%(sender)s", dest="%(destemail)s", protocol="%(protocol)s", chain="%(chain)s"]
-action = $(action_)s
+action = iptables
 
 
 [ssh]
diff --git a/packer/ubuntu-server/ubuntu.pkr.hcl b/packer/ubuntu-server/ubuntu.pkr.hcl
index a0c4f06..d89252b 100644
--- a/packer/ubuntu-server/ubuntu.pkr.hcl
+++ b/packer/ubuntu-server/ubuntu.pkr.hcl
@@ -86,7 +86,7 @@ source "amazon-ebs" "aws-ami" {
     most_recent = true
   }
   
-  //TODO: CHANGE ME! Change the password to use the random one, too!
+  # Packer connects as ubuntu user during build, then we create dibbs-user via provisioning
   ssh_username = "ubuntu"
 
   launch_block_device_mappings {
@@ -121,25 +121,48 @@ source "azure-arm" "azure-image" {
   managed_image_resource_group_name = "skylight-dibbs-vm1"
   os_type                           = "Linux"
 
-  //TODO: CHANGE ME! Change the password to use the random one, too!
-  ssh_username                      = "ubuntu"
-
+  # Packer connects as ubuntu user during build, then we create dibbs-user via provisioning
+  ssh_username = "ubuntu"
 }
 
 
 build {
   name = "multi-cloud-build"
   sources = [
-    "source.qemu.raw"
-    //"source.amazon-ebs.aws-ami",
-    //"source.azure-arm.azure-image"
+    "source.qemu.raw",
+    "source.amazon-ebs.aws-ami",
+    "source.azure-arm.azure-image"
   ]
 
+  # Create dibbs-user account on cloud instances during build
+  provisioner "shell" {
+    only = ["amazon-ebs.aws-ami", "azure-arm.azure-image"]
+    inline = [
+      "sudo useradd -m -s /bin/bash -G sudo dibbs-user",
+      "echo 'dibbs-user:${var.ssh_password}' | sudo chpasswd",
+      "echo 'dibbs-user ALL=(ALL) ALL' | sudo tee /etc/sudoers.d/dibbs-user",
+      "sudo chmod 0440 /etc/sudoers.d/dibbs-user" ,
+      "sudo gpasswd -d ubuntu docker || true" ,
+      "echo 'ubuntu ALL=(ALL) NOPASSWD: ALL, !/usr/bin/docker' | sudo tee /etc/sudoers.d/ubuntu-docker-block",
+      "sudo chmod 0440 /etc/sudoers.d/ubuntu-docker-block"
+    ]
+  }
+
   provisioner "file" {
     source      = "./jails/jail.local"
     destination = "~/jail.local"
   }
 
+  # Wait for dibbs-user to be created on cloud instances
+  provisioner "shell" {
+    only = ["amazon-ebs.aws-ami", "azure-arm.azure-image"]
+    inline = [
+      "while ! id dibbs-user >/dev/null 2>&1; do echo 'Waiting for dibbs-user...'; sleep 5; done",
+      "echo 'dibbs-user is ready'"
+    ]
+  }
+
+  # Switch to dibbs-user for subsequent provisioning on cloud instances
   provisioner "shell" {
     only   = ["azure-arm.azure-image"]
     scripts = [
@@ -153,9 +176,7 @@ build {
       "USE_SUDO=sudo",
       "BUILD_TYPE=azure"
     ]
-
-    //TODO: Add new password here!
-    execute_command = "echo 'ubuntu' | {{.Vars}} sudo -S -E bash '{{.Path}}'"
+    execute_command = "echo '${var.ssh_password}' | {{.Vars}} sudo -S -E bash '{{.Path}}'"
   }
 
   provisioner "shell" {
@@ -168,12 +189,10 @@ build {
     environment_vars = [
       "DIBBS_SERVICE=${var.dibbs_service}",
       "DIBBS_VERSION=${var.dibbs_version}",
-      "USE_SUDO=",
+      "USE_SUDO=sudo",
       "BUILD_TYPE=aws"
     ]
-
-    //TODO: Add new password here!
-    execute_command = "echo 'ubuntu' | {{.Vars}} sudo -S -E bash '{{.Path}}'"
+    execute_command = "echo '${var.ssh_password}' | {{.Vars}} sudo -S -E bash '{{.Path}}'"
   }
 
   provisioner "shell" {
@@ -203,4 +222,4 @@ build {
     source      = "./scripts/apt-updates.sh.home"
     destination = "~/apt-updates.sh"
   }
-}
+}
\ No newline at end of file