diff --git a/builtin/providers/azurerm/resource_arm_virtual_machine.go b/builtin/providers/azurerm/resource_arm_virtual_machine.go
index 435f91c462..079e6d4264 100644
--- a/builtin/providers/azurerm/resource_arm_virtual_machine.go
+++ b/builtin/providers/azurerm/resource_arm_virtual_machine.go
@@ -11,6 +11,7 @@ import (
 	"github.com/Azure/azure-sdk-for-go/arm/compute"
 	"github.com/hashicorp/terraform/helper/hashcode"
 	"github.com/hashicorp/terraform/helper/schema"
+	riviera "github.com/jen20/riviera/azure"
 )
 
 func resourceArmVirtualMachine() *schema.Resource {
@@ -214,9 +215,11 @@ func resourceArmVirtualMachine() *schema.Resource {
 			},
 
 			"diagnostics_profile": {
-				Type:     schema.TypeSet,
-				Optional: true,
-				MaxItems: 1,
+				Type:          schema.TypeSet,
+				Optional:      true,
+				MaxItems:      1,
+				ConflictsWith: []string{"boot_diagnostics"},
+				Deprecated:    "Use field boot_diagnostics instead",
 				Elem: &schema.Resource{
 					Schema: map[string]*schema.Schema{
 						"boot_diagnostics": {
@@ -241,6 +244,25 @@ func resourceArmVirtualMachine() *schema.Resource {
 				},
 			},
 
+			"boot_diagnostics": {
+				Type:     schema.TypeList,
+				Optional: true,
+				MaxItems: 1,
+				Elem: &schema.Resource{
+					Schema: map[string]*schema.Schema{
+						"enabled": {
+							Type:     schema.TypeBool,
+							Required: true,
+						},
+
+						"storage_uri": {
+							Type:     schema.TypeString,
+							Required: true,
+						},
+					},
+				},
+			},
+
 			"os_profile": {
 				Type:     schema.TypeSet,
 				Required: true,
@@ -453,9 +475,11 @@ func resourceArmVirtualMachineCreate(d *schema.ResourceData, meta interface{}) e
 		StorageProfile: &storageProfile,
 	}
 
-	if _, ok := d.GetOk("diagnostics_profile"); ok {
+	if _, ok := d.GetOk("boot_diagnostics"); ok {
 		diagnosticsProfile := expandAzureRmVirtualMachineDiagnosticsProfile(d)
-		properties.DiagnosticsProfile = &diagnosticsProfile
+		if diagnosticsProfile != nil {
+			properties.DiagnosticsProfile = diagnosticsProfile
+		}
 	}
 
 	osProfile, err := expandAzureRmVirtualMachineOsProfile(d)
@@ -577,8 +601,8 @@ func resourceArmVirtualMachineRead(d *schema.ResourceData, meta interface{}) err
 		}
 	}
 
-	if resp.Properties.DiagnosticsProfile != nil {
-		if err := d.Set("diagnostics_profile", flattenAzureRmVirtualMachineDiagnosticsProfile(resp.Properties.DiagnosticsProfile)); err != nil {
+	if resp.Properties.DiagnosticsProfile != nil && resp.Properties.DiagnosticsProfile.BootDiagnostics != nil {
+		if err := d.Set("boot_diagnostics", flattenAzureRmVirtualMachineDiagnosticsProfile(resp.Properties.DiagnosticsProfile.BootDiagnostics)); err != nil {
 			return fmt.Errorf("[DEBUG] Error setting Virtual Machine Diagnostics Profile: %#v", err)
 		}
 	}
@@ -751,14 +775,13 @@ func flattenAzureRmVirtualMachineImageReference(image *compute.ImageReference) [
 	return []interface{}{result}
 }
 
-func flattenAzureRmVirtualMachineDiagnosticsProfile(profile *compute.DiagnosticsProfile) map[string]interface{} {
+func flattenAzureRmVirtualMachineDiagnosticsProfile(profile *compute.BootDiagnostics) []interface{} {
 	result := make(map[string]interface{})
-	bootDiagnostics := make(map[string]interface{})
-	bootDiagnostics["enabled"] = *profile.BootDiagnostics.Enabled
-	bootDiagnostics["storage_uri"] = *profile.BootDiagnostics.StorageURI
-	result["boot_diagnostics"] = bootDiagnostics
 
-	return result
+	result["enabled"] = *profile.Enabled
+	result["storage_uri"] = *profile.StorageURI
+
+	return []interface{}{result}
 }
 
 func flattenAzureRmVirtualMachineNetworkInterfaces(profile *compute.NetworkProfile) []string {
@@ -1140,20 +1163,24 @@ func expandAzureRmVirtualMachineDataDisk(d *schema.ResourceData) ([]compute.Data
 	return data_disks, nil
 }
 
-func expandAzureRmVirtualMachineDiagnosticsProfile(d *schema.ResourceData) compute.DiagnosticsProfile {
-	diagnosticsProfiles := d.Get("diagnostics_profile").(*schema.Set).List()
-	diagnosticsProfile := diagnosticsProfiles[0].(map[string]interface{})
-	bootDiagnosticses := diagnosticsProfile["boot_diagnostics"].(*schema.Set).List()
-	bootDiagnostics := bootDiagnosticses[0].(map[string]interface{})
-	enabled := bootDiagnostics["enabled"].(bool)
-	storageURI := bootDiagnostics["storage_uri"].(string)
+func expandAzureRmVirtualMachineDiagnosticsProfile(d *schema.ResourceData) *compute.DiagnosticsProfile {
+	bootDiagnostics := d.Get("boot_diagnostics").([]interface{})
 
-	return compute.DiagnosticsProfile{
-		BootDiagnostics: &compute.BootDiagnostics{
-			Enabled:    &enabled,
-			StorageURI: &storageURI,
-		},
+	diagnosticsProfile := &compute.DiagnosticsProfile{}
+	if len(bootDiagnostics) > 0 {
+		bootDiagnostic := bootDiagnostics[0].(map[string]interface{})
+
+		diagnostic := &compute.BootDiagnostics{
+			Enabled:    riviera.Bool(bootDiagnostic["enabled"].(bool)),
+			StorageURI: riviera.String(bootDiagnostic["storage_uri"].(string)),
+		}
+
+		diagnosticsProfile.BootDiagnostics = diagnostic
+
+		return diagnosticsProfile
 	}
+
+	return nil
 }
 
 func expandAzureRmVirtualMachineImageReference(d *schema.ResourceData) (*compute.ImageReference, error) {
diff --git a/builtin/providers/azurerm/resource_arm_virtual_machine_test.go b/builtin/providers/azurerm/resource_arm_virtual_machine_test.go
index bf34640ae4..6e414d9c24 100644
--- a/builtin/providers/azurerm/resource_arm_virtual_machine_test.go
+++ b/builtin/providers/azurerm/resource_arm_virtual_machine_test.go
@@ -1254,6 +1254,11 @@ resource "azurerm_virtual_machine" "test" {
 	admin_password = "Password1234!"
     }
 
+    boot_diagnostics {
+        enabled = true
+        storage_uri = "${azurerm_storage_account.test.primary_blob_endpoint}"
+    }
+
     os_profile_windows_config {
         winrm {
 	  protocol = "http"
diff --git a/website/source/docs/providers/azurerm/r/virtual_machine.html.markdown b/website/source/docs/providers/azurerm/r/virtual_machine.html.markdown
index a858c3b0c3..e959b9a0ea 100644
--- a/website/source/docs/providers/azurerm/r/virtual_machine.html.markdown
+++ b/website/source/docs/providers/azurerm/r/virtual_machine.html.markdown
@@ -207,7 +207,7 @@ The following arguments are supported:
 * `location` - (Required) Specifies the supported Azure location where the resource exists. Changing this forces a new resource to be created.
 * `plan` - (Optional) A plan block as documented below.
 * `availability_set_id` - (Optional) The Id of the Availability Set in which to create the virtual machine
-* `diagnostics_profile` - (Optional) A Diagnostics Profile block as referenced below.
+* `boot_diagnostics` - (Optional) A boot diagnostics profile block as referenced below.
 * `vm_size` - (Required) Specifies the [size of the virtual machine](https://azure.microsoft.com/en-us/documentation/articles/virtual-machines-size-specs/).
 * `storage_image_reference` - (Optional) A Storage Image Reference block as documented below.
 * `storage_os_disk` - (Required) A Storage OS Disk block as referenced below.
@@ -229,10 +229,6 @@ For more information on the different example configurations, please check out t
 * `publisher` - (Optional) Specifies the publisher of the image.
 * `product` - (Optional) Specifies the product of the image from the marketplace.
 
-`diagnostics_profile` supports the following:
-
-* `boot_diagnostics`: (Required) A Boot Diagnostics block as documented below.
-
 `boot_diagnostics` supports the following:
 
 * `enabled`: (Required) Whether to enable boot diagnostics for the virtual machine.