diff --git a/lib/embedded_ansible.rb b/lib/embedded_ansible.rb
index 53a047e065f..1df27e1deb4 100644
--- a/lib/embedded_ansible.rb
+++ b/lib/embedded_ansible.rb
@@ -4,9 +4,8 @@
 require "ansible_tower_client"
 
 class EmbeddedAnsible
-  APPLIANCE_ANSIBLE_DIRECTORY = "/opt/ansible-installer".freeze
   ANSIBLE_ROLE                = "embedded_ansible".freeze
-  SETUP_SCRIPT                = "#{APPLIANCE_ANSIBLE_DIRECTORY}/setup.sh".freeze
+  SETUP_SCRIPT                = "ansible-tower-setup".freeze
   SECRET_KEY_FILE             = "/etc/tower/SECRET_KEY".freeze
   CONFIGURE_EXCLUDE_TAGS      = "packages,migrations,firewall,supervisor".freeze
   START_EXCLUDE_TAGS          = "packages,migrations,firewall".freeze
@@ -15,8 +14,10 @@ class EmbeddedAnsible
   WAIT_FOR_ANSIBLE_SLEEP      = 1.second
 
   def self.available?
-    path = ENV["APPLIANCE_ANSIBLE_DIRECTORY"] || APPLIANCE_ANSIBLE_DIRECTORY
-    Dir.exist?(File.expand_path(path.to_s))
+    return false unless MiqEnvironment::Command.is_appliance?
+
+    required_rpms = Set["ansible-tower-server", "ansible-tower-setup"]
+    required_rpms.subset?(LinuxAdmin::Rpm.list_installed.keys.to_set)
   end
 
   def self.enabled?
@@ -85,9 +86,10 @@ def self.api_connection
 
   def self.run_setup_script(exclude_tags)
     json_extra_vars = {
-      :minimum_var_space => 0,
-      :http_port         => HTTP_PORT,
-      :https_port        => HTTPS_PORT
+      :minimum_var_space  => 0,
+      :http_port          => HTTP_PORT,
+      :https_port         => HTTPS_PORT,
+      :tower_package_name => "ansible-tower-server"
     }.to_json
 
     with_inventory_file do |inventory_file_path|
diff --git a/spec/lib/embedded_ansible_spec.rb b/spec/lib/embedded_ansible_spec.rb
index d811907403c..743d9000de3 100644
--- a/spec/lib/embedded_ansible_spec.rb
+++ b/spec/lib/embedded_ansible_spec.rb
@@ -2,28 +2,32 @@
 require "awesome_spawn"
 
 describe EmbeddedAnsible do
-  before do
-    ENV["APPLIANCE_ANSIBLE_DIRECTORY"] = nil
-  end
-
   context ".available?" do
-    it "returns true when installed in the default location" do
-      allow(Dir).to receive(:exist?).with("/opt/ansible-installer").and_return(true)
+    context "in an appliance" do
+      before do
+        allow(MiqEnvironment::Command).to receive(:is_appliance?).and_return(true)
+      end
 
-      expect(described_class.available?).to be_truthy
-    end
+      it "returns true when installed in the default location" do
+        installed_rpms = {
+          "ansible-tower-server" => "1.0.1",
+          "ansible-tower-setup"  => "1.2.3",
+          "vim"                  => "13.5.1"
+        }
+        expect(LinuxAdmin::Rpm).to receive(:list_installed).and_return(installed_rpms)
 
-    it "returns true when installed in the custom location in env var" do
-      ENV["APPLIANCE_ANSIBLE_DIRECTORY"] = "/tmp"
-      allow(Dir).to receive(:exist?).with("/tmp").and_return(true)
-      allow(Dir).to receive(:exist?).with("/opt/ansible-installer").and_return(false)
+        expect(described_class.available?).to be_truthy
+      end
 
-      expect(described_class.available?).to be_truthy
-    end
+      it "returns false when not installed" do
+        expect(LinuxAdmin::Rpm).to receive(:list_installed).and_return("vim" => "13.5.1")
 
-    it "returns false when not installed" do
-      allow(Dir).to receive(:exist?).with("/opt/ansible-installer").and_return(false)
+        expect(described_class.available?).to be_falsey
+      end
+    end
 
+    it "returns false outside of an appliance" do
+      allow(MiqEnvironment::Command).to receive(:is_appliance?).and_return(false)
       expect(described_class.available?).to be_falsey
     end
   end
@@ -88,9 +92,10 @@
     let(:miq_database) { MiqDatabase.first }
     let(:extra_vars) do
       {
-        :minimum_var_space => 0,
-        :http_port         => described_class::HTTP_PORT,
-        :https_port        => described_class::HTTPS_PORT
+        :minimum_var_space  => 0,
+        :http_port          => described_class::HTTP_PORT,
+        :https_port         => described_class::HTTPS_PORT,
+        :tower_package_name => "ansible-tower-server"
       }.to_json
     end
 
@@ -231,7 +236,7 @@
           params                  = options[:params]
           inventory_file_contents = File.read(params[:inventory=])
 
-          expect(script_path).to eq("/opt/ansible-installer/setup.sh")
+          expect(script_path).to eq("ansible-tower-setup")
           expect(params["--"]).to be_nil
           expect(params[:extra_vars=]).to eq(extra_vars)
           expect(params[:skip_tags=]).to eq("packages,migrations,firewall,supervisor")
@@ -258,7 +263,7 @@
           params                  = options[:params]
           inventory_file_contents = File.read(params[:inventory=])
 
-          expect(script_path).to eq("/opt/ansible-installer/setup.sh")
+          expect(script_path).to eq("ansible-tower-setup")
           expect(params["--"]).to be_nil
           expect(params[:extra_vars=]).to eq(extra_vars)
           expect(params[:skip_tags=]).to eq("packages,migrations,firewall,supervisor")
@@ -289,7 +294,7 @@
           params                  = options[:params]
           inventory_file_contents = File.read(params[:inventory=])
 
-          expect(script_path).to eq("/opt/ansible-installer/setup.sh")
+          expect(script_path).to eq("ansible-tower-setup")
           expect(params["--"]).to be_nil
           expect(params[:extra_vars=]).to eq(extra_vars)
           expect(params[:skip_tags=]).to eq("packages,migrations,firewall")