diff --git a/.github/workflows/terraform.yml b/.github/workflows/terraform.yml
index 87bcb8c7c..91a8b7f35 100644
--- a/.github/workflows/terraform.yml
+++ b/.github/workflows/terraform.yml
@@ -26,6 +26,7 @@ jobs:
           sudo apt-get install -y cloud-init
           sudo cloud-init schema --config-file terraform/modules/relay-app/templates/cloud-init.yaml
           sudo cloud-init schema --config-file terraform/modules/elixir-app/templates/cloud-init.yaml
+          sudo cloud-init schema --config-file terraform/modules/gateway-app/templates/cloud-init.yaml
       - name: Check Formatting
         working-directory: terraform
         run: |
diff --git a/terraform/environments/production/gateways.tf b/terraform/environments/production/gateways.tf
index 6d634077d..4918a8760 100644
--- a/terraform/environments/production/gateways.tf
+++ b/terraform/environments/production/gateways.tf
@@ -34,7 +34,7 @@ resource "google_compute_subnetwork" "gateways" {
 module "gateways" {
   count = var.gateway_portal_token != null ? 1 : 0
 
-  source     = "../../modules/gateway-app"
+  source     = "../../modules/gateway-google-cloud-compute"
   project_id = module.google-cloud-project.project.project_id
 
   compute_network    = google_compute_network.gateways.self_link
diff --git a/terraform/modules/elixir-app/templates/cloud-init.yaml b/terraform/modules/elixir-app/templates/cloud-init.yaml
index 22384bae8..3d58c6a7b 100644
--- a/terraform/modules/elixir-app/templates/cloud-init.yaml
+++ b/terraform/modules/elixir-app/templates/cloud-init.yaml
@@ -53,8 +53,8 @@ write_files:
       [Service]
       TimeoutStartSec=0
       Restart=always
-      ExecStartPre=/usr/bin/docker pull otel/opentelemetry-collector-contrib:0.85.0
-      ExecStart=/usr/bin/docker run --rm -u 2000 --name=otel-collector --network host --volume /etc/otelcol-contrib/:/etc/otelcol-contrib/ otel/opentelemetry-collector-contrib:0.85.0
+      ExecStartPre=/usr/bin/docker pull otel/opentelemetry-collector-contrib:0.87.0
+      ExecStart=/usr/bin/docker run --rm -u 2000 --name=otel-collector --network host --volume /etc/otelcol-contrib/:/etc/otelcol-contrib/ otel/opentelemetry-collector-contrib:0.87.0
       ExecStop=/usr/bin/docker stop otel-collector
       ExecStopPost=/usr/bin/docker rm otel-collector
 
diff --git a/terraform/modules/gateway-app/outputs.tf b/terraform/modules/gateway-app/outputs.tf
deleted file mode 100644
index ab8a7839b..000000000
--- a/terraform/modules/gateway-app/outputs.tf
+++ /dev/null
@@ -1,7 +0,0 @@
-output "service_account" {
-  value = google_service_account.application
-}
-
-output "target_tags" {
-  value = ["app-${local.application_name}"]
-}
diff --git a/terraform/modules/gateway-google-cloud-compute/iam.tf b/terraform/modules/gateway-google-cloud-compute/iam.tf
new file mode 100644
index 000000000..e7f523d99
--- /dev/null
+++ b/terraform/modules/gateway-google-cloud-compute/iam.tf
@@ -0,0 +1,63 @@
+
+# Create IAM role for the application instances
+resource "google_service_account" "application" {
+  project = var.project_id
+
+  account_id   = "app-${local.application_name}"
+  display_name = "${local.application_name} app"
+  description  = "Service account for ${local.application_name} application instances."
+}
+
+## Allow application service account to pull images from the container registry
+resource "google_project_iam_member" "artifacts" {
+  project = var.project_id
+
+  role = "roles/artifactregistry.reader"
+
+  member = "serviceAccount:${google_service_account.application.email}"
+}
+
+## Allow fluentbit to injest logs
+resource "google_project_iam_member" "logs" {
+  project = var.project_id
+
+  role = "roles/logging.logWriter"
+
+  member = "serviceAccount:${google_service_account.application.email}"
+}
+
+## Allow reporting application errors
+resource "google_project_iam_member" "errors" {
+  project = var.project_id
+
+  role = "roles/errorreporting.writer"
+
+  member = "serviceAccount:${google_service_account.application.email}"
+}
+
+## Allow reporting metrics
+resource "google_project_iam_member" "metrics" {
+  project = var.project_id
+
+  role = "roles/monitoring.metricWriter"
+
+  member = "serviceAccount:${google_service_account.application.email}"
+}
+
+## Allow reporting metrics
+resource "google_project_iam_member" "service_management" {
+  project = var.project_id
+
+  role = "roles/servicemanagement.reporter"
+
+  member = "serviceAccount:${google_service_account.application.email}"
+}
+
+## Allow appending traces
+resource "google_project_iam_member" "cloudtrace" {
+  project = var.project_id
+
+  role = "roles/cloudtrace.agent"
+
+  member = "serviceAccount:${google_service_account.application.email}"
+}
diff --git a/terraform/modules/gateway-app/main.tf b/terraform/modules/gateway-google-cloud-compute/main.tf
similarity index 78%
rename from terraform/modules/gateway-app/main.tf
rename to terraform/modules/gateway-google-cloud-compute/main.tf
index c852babbf..2c3a63ef2 100644
--- a/terraform/modules/gateway-app/main.tf
+++ b/terraform/modules/gateway-google-cloud-compute/main.tf
@@ -7,6 +7,8 @@ locals {
     application = local.application_name
   }, var.application_labels)
 
+  application_tags = ["app-${local.application_name}"]
+
   google_health_check_ip_ranges = [
     "130.211.0.0/22",
     "35.191.0.0/16"
@@ -50,71 +52,8 @@ locals {
 
 # Fetch most recent COS image
 data "google_compute_image" "coreos" {
-  family  = "ubuntu-2004-lts"
-  project = "ubuntu-os-cloud"
-}
-
-# Create IAM role for the application instances
-resource "google_service_account" "application" {
-  project = var.project_id
-
-  account_id   = "app-${local.application_name}"
-  display_name = "${local.application_name} app"
-  description  = "Service account for ${local.application_name} application instances."
-}
-
-## Allow application service account to pull images from the container registry
-resource "google_project_iam_member" "artifacts" {
-  project = var.project_id
-
-  role = "roles/artifactregistry.reader"
-
-  member = "serviceAccount:${google_service_account.application.email}"
-}
-
-## Allow fluentbit to injest logs
-resource "google_project_iam_member" "logs" {
-  project = var.project_id
-
-  role = "roles/logging.logWriter"
-
-  member = "serviceAccount:${google_service_account.application.email}"
-}
-
-## Allow reporting application errors
-resource "google_project_iam_member" "errors" {
-  project = var.project_id
-
-  role = "roles/errorreporting.writer"
-
-  member = "serviceAccount:${google_service_account.application.email}"
-}
-
-## Allow reporting metrics
-resource "google_project_iam_member" "metrics" {
-  project = var.project_id
-
-  role = "roles/monitoring.metricWriter"
-
-  member = "serviceAccount:${google_service_account.application.email}"
-}
-
-## Allow reporting metrics
-resource "google_project_iam_member" "service_management" {
-  project = var.project_id
-
-  role = "roles/servicemanagement.reporter"
-
-  member = "serviceAccount:${google_service_account.application.email}"
-}
-
-## Allow appending traces
-resource "google_project_iam_member" "cloudtrace" {
-  project = var.project_id
-
-  role = "roles/cloudtrace.agent"
-
-  member = "serviceAccount:${google_service_account.application.email}"
+  family  = "cos-109-lts"
+  project = "cos-cloud"
 }
 
 # Deploy app
@@ -129,7 +68,7 @@ resource "google_compute_instance_template" "application" {
 
   can_ip_forward = true
 
-  tags = ["app-${local.application_name}"]
+  tags = local.application_tags
 
   labels = merge({
     container-vm = data.google_compute_image.coreos.name
diff --git a/terraform/modules/gateway-google-cloud-compute/outputs.tf b/terraform/modules/gateway-google-cloud-compute/outputs.tf
new file mode 100644
index 000000000..7af44658a
--- /dev/null
+++ b/terraform/modules/gateway-google-cloud-compute/outputs.tf
@@ -0,0 +1,15 @@
+output "service_account" {
+  value = google_service_account.application
+}
+
+output "target_tags" {
+  value = local.application_tags
+}
+
+output "instance_template" {
+  value = google_compute_instance_template.application
+}
+
+output "instance_group" {
+  value = google_compute_region_instance_group_manager.application
+}
diff --git a/terraform/modules/gateway-app/services.tf b/terraform/modules/gateway-google-cloud-compute/services.tf
similarity index 99%
rename from terraform/modules/gateway-app/services.tf
rename to terraform/modules/gateway-google-cloud-compute/services.tf
index 76e80a208..f8ac4715e 100644
--- a/terraform/modules/gateway-app/services.tf
+++ b/terraform/modules/gateway-google-cloud-compute/services.tf
@@ -1,4 +1,3 @@
-
 resource "google_project_service" "compute" {
   project = var.project_id
   service = "compute.googleapis.com"
diff --git a/terraform/modules/gateway-app/templates/cloud-init.yaml b/terraform/modules/gateway-google-cloud-compute/templates/cloud-init.yaml
similarity index 90%
rename from terraform/modules/gateway-app/templates/cloud-init.yaml
rename to terraform/modules/gateway-google-cloud-compute/templates/cloud-init.yaml
index db41bec7e..fd4732bdf 100644
--- a/terraform/modules/gateway-app/templates/cloud-init.yaml
+++ b/terraform/modules/gateway-google-cloud-compute/templates/cloud-init.yaml
@@ -1,29 +1,10 @@
 #cloud-config
 
-packages:
-  - apt-transport-https
-  - ca-certificates
-  - curl
-  - gnupg-agent
-  - software-properties-common
-  - docker.io
-
 users:
   - name: cloudservice
     uid: 2000
 
-groups:
-  - docker
-
-system_info:
-  default_user:
-    groups: [docker]
-
 write_files:
-  - path: /etc/sysctl.d/enabled_ipv4_forwarding.conf
-    content: |
-      net.ipv4.conf.all.forwarding=1
-
   - path: /etc/otelcol-contrib/config.yaml
     permissions: "0644"
     owner: root
@@ -102,8 +83,8 @@ write_files:
       [Service]
       TimeoutStartSec=0
       Restart=always
-      ExecStartPre=/usr/bin/docker pull otel/opentelemetry-collector-contrib:0.85.0
-      ExecStart=/usr/bin/docker run --rm -u 2000 --name=otel-collector --network host --volume /etc/otelcol-contrib/:/etc/otelcol-contrib/ otel/opentelemetry-collector-contrib:0.85.0
+      ExecStartPre=/usr/bin/docker pull otel/opentelemetry-collector-contrib:0.87.0
+      ExecStart=/usr/bin/docker run --rm -u 2000 --name=otel-collector --network host --volume /etc/otelcol-contrib/:/etc/otelcol-contrib/ otel/opentelemetry-collector-contrib:0.87.0
       ExecStop=/usr/bin/docker stop otel-collector
       ExecStopPost=/usr/bin/docker rm otel-collector
 
@@ -131,8 +112,6 @@ write_files:
       ExecStopPost=/usr/bin/docker rm gateway
 
 runcmd:
-  - sudo systemctl enable docker.service
-  - sudo systemctl enable containerd.service
   - sudo systemctl daemon-reload
   - sudo systemctl start otel-collector.service
   - sudo systemctl start gateway.service
diff --git a/terraform/modules/gateway-app/variables.tf b/terraform/modules/gateway-google-cloud-compute/variables.tf
similarity index 100%
rename from terraform/modules/gateway-app/variables.tf
rename to terraform/modules/gateway-google-cloud-compute/variables.tf
diff --git a/terraform/modules/relay-app/templates/cloud-init.yaml b/terraform/modules/relay-app/templates/cloud-init.yaml
index b27dd018e..9e512ed7f 100644
--- a/terraform/modules/relay-app/templates/cloud-init.yaml
+++ b/terraform/modules/relay-app/templates/cloud-init.yaml
@@ -83,8 +83,8 @@ write_files:
       [Service]
       TimeoutStartSec=0
       Restart=always
-      ExecStartPre=/usr/bin/docker pull otel/opentelemetry-collector-contrib:0.85.0
-      ExecStart=/usr/bin/docker run --rm -u 2000 --name=otel-collector --network host --volume /etc/otelcol-contrib/:/etc/otelcol-contrib/ otel/opentelemetry-collector-contrib:0.85.0
+      ExecStartPre=/usr/bin/docker pull otel/opentelemetry-collector-contrib:0.87.0
+      ExecStart=/usr/bin/docker run --rm -u 2000 --name=otel-collector --network host --volume /etc/otelcol-contrib/:/etc/otelcol-contrib/ otel/opentelemetry-collector-contrib:0.87.0
       ExecStop=/usr/bin/docker stop otel-collector
       ExecStopPost=/usr/bin/docker rm otel-collector