diff --git a/service-mgmt/sm-1.0.0/centos/build_srpm.data b/service-mgmt/sm-1.0.0/centos/build_srpm.data
index 918657b2..b91c16cd 100644
--- a/service-mgmt/sm-1.0.0/centos/build_srpm.data
+++ b/service-mgmt/sm-1.0.0/centos/build_srpm.data
@@ -2,4 +2,4 @@ SRC_DIR=$PKG_BASE
 COPY_LIST="$PKG_BASE/LICENSE"
 TAR_NAME=sm
 VERSION=1.0.0
-TIS_PATCH_VER=28
+TIS_PATCH_VER=29
diff --git a/service-mgmt/sm-1.0.0/src/sm_failover.c b/service-mgmt/sm-1.0.0/src/sm_failover.c
index f9f0cf45..08f8ac8c 100644
--- a/service-mgmt/sm-1.0.0/src/sm_failover.c
+++ b/service-mgmt/sm-1.0.0/src/sm_failover.c
@@ -1213,17 +1213,6 @@ SmErrorT sm_failover_initialize( void )
         return SM_FAILED;
     }
 
-    SmHwCallbacksT callbacks;
-    memset( &callbacks, 0, sizeof(callbacks) );
-    callbacks.interface_change = sm_failover_interface_change_callback;
-    error = sm_hw_initialize( &callbacks );
-    if( SM_OKAY != error )
-    {
-        DPRINTFE( "Failed to initialize hardware module, error=%s.",
-                  sm_error_str( error ) );
-        return( error );
-    }
-
     error = SmFailoverFSM::initialize();
     if( SM_OKAY != error )
     {
@@ -1338,6 +1327,17 @@ SmErrorT sm_failover_initialize( void )
         DPRINTFE("Failed to initialize cluster hbs info messaging");
     }
 
+    SmHwCallbacksT callbacks;
+    memset( &callbacks, 0, sizeof(callbacks) );
+    callbacks.interface_change = sm_failover_interface_change_callback;
+    error = sm_hw_initialize( &callbacks );
+    if( SM_OKAY != error )
+    {
+        DPRINTFE( "Failed to initialize hardware module, error=%s.",
+                  sm_error_str( error ) );
+        return( error );
+    }
+
     return SM_OKAY;
 }
 // ****************************************************************************
@@ -1350,6 +1350,17 @@ SmErrorT sm_failover_finalize( void )
     _total_interfaces = 0;
 
     SmErrorT error;
+    SmHwCallbacksT callbacks;
+    memset( &callbacks, 0, sizeof(callbacks) );
+    callbacks.interface_change = sm_failover_interface_change_callback;
+    error = sm_hw_initialize( &callbacks );
+    if( SM_OKAY != error )
+    {
+        DPRINTFE( "Failed to initialize hardware module, error=%s.",
+                  sm_error_str( error ) );
+        return( error );
+    }
+
     error = SmClusterHbsInfoMsg::finalize();
     if(SM_OKAY != error)
     {
diff --git a/service-mgmt/sm-1.0.0/src/sm_process.c b/service-mgmt/sm-1.0.0/src/sm_process.c
index 52022ec9..9a2e81ad 100644
--- a/service-mgmt/sm-1.0.0/src/sm_process.c
+++ b/service-mgmt/sm-1.0.0/src/sm_process.c
@@ -184,14 +184,6 @@ static SmErrorT sm_process_initialize( void )
         return( SM_FAILED );
     }
 
-    error = sm_hw_initialize( NULL );
-    if( SM_OKAY != error )
-    {
-        DPRINTFE( "Failed to initialize hardware module, error=%s.",
-                  sm_error_str( error ) );
-        return( SM_FAILED );
-    }
-
     error = SmWorkerThread::initialize();
     if( SM_OKAY != error )
     {
@@ -511,13 +503,6 @@ static SmErrorT sm_process_finalize( void )
                   sm_error_str( error ) );
     }
 
-    error = sm_hw_finalize();
-    if( SM_OKAY != error )
-    {
-        DPRINTFE( "Failed to finalize hardware module, error=%s.",
-                  sm_error_str( error ) );
-    }
-
     error = sm_timer_finalize();
     if( SM_OKAY != error )
     {