diff --git a/Makefile b/Makefile
index 91150740..5440b6bf 100644
--- a/Makefile
+++ b/Makefile
@@ -1,6 +1,6 @@
 #include tests/e2e/Makefile
 
-VERSION ?= 1.4.0
+VERSION ?= 1.4.1
 
 # check if we are using MacOS or LINUX and use that to determine the sed command
 UNAME_S := $(shell uname -s)
diff --git a/chart/Chart.yaml b/chart/Chart.yaml
index b9f44c3d..f7a93d87 100644
--- a/chart/Chart.yaml
+++ b/chart/Chart.yaml
@@ -5,12 +5,12 @@ type: application
 # This is the chart version. This version number should be incremented each time you make changes
 # to the chart and its templates, including the app version.
 # Versions are expected to follow Semantic Versioning (https://semver.org/)
-version: 1.4.0
+version: 1.4.1
 # This is the version number of the application being deployed. This version number should be
 # incremented each time you make changes to the application. Versions are not expected to
 # follow Semantic Versioning. They should reflect the version the application is using.
 # It is recommended to use it with quotes.
-appVersion: "v1.4.0"
+appVersion: "v1.4.1"
 dependencies:
   - name: common
     repository: https://charts.bitnami.com/bitnami
diff --git a/chart/values.yaml b/chart/values.yaml
index 359984bb..cf73a368 100644
--- a/chart/values.yaml
+++ b/chart/values.yaml
@@ -4,7 +4,7 @@
 
 image:
   repository: docker.io/uffizzi/uffizzi-cluster-operator
-  tag: v1.4.0
+  tag: v1.4.1
 # `flux` dependency values
 flux:
   helmController:
diff --git a/controllers/uffizzicluster/conditions.go b/controllers/uffizzicluster/conditions.go
index 613560a7..f03c3908 100644
--- a/controllers/uffizzicluster/conditions.go
+++ b/controllers/uffizzicluster/conditions.go
@@ -10,19 +10,22 @@ import (
 // Condition types.
 const (
 	// TypeReady resources are believed to be ready to handle work.
-	TypeReady    = "Ready"
-	TypeAPIReady = "APIReady"
-	TypeSleep    = "Sleep"
+	TypeReady          = "Ready"
+	TypeAPIReady       = "APIReady"
+	TypeDataStoreReady = "DataStoreReady"
+	TypeSleep          = "Sleep"
 )
 
 // Reasons a resource is or is not ready.
 const (
-	ReasonDefault      = "Default"
-	ReasonInitializing = "Initializing"
-	ReasonReady        = "APIReady"
-	ReasonNotReady     = "APINotReady"
-	ReasonSleeping     = "Sleeping"
-	ReasonAwoken       = "Awoken"
+	ReasonDefault           = "Default"
+	ReasonInitializing      = "Initializing"
+	ReasonAPIReady          = "APIReady"
+	ReasonAPINotReady       = "APINotReady"
+	ReasonDataStoreReady    = "DataStoreReady"
+	ReasonDataStoreNotReady = "DataStoreNotReady"
+	ReasonSleeping          = "Sleeping"
+	ReasonAwoken            = "Awoken"
 )
 
 func Initializing() metav1.Condition {
@@ -45,26 +48,56 @@ func InitializingAPI() metav1.Condition {
 	}
 }
 
+func InitializingDataStore() metav1.Condition {
+	return metav1.Condition{
+		Type:               TypeDataStoreReady,
+		Status:             metav1.ConditionUnknown,
+		Reason:             ReasonInitializing,
+		LastTransitionTime: metav1.Now(),
+		Message:            "UffizziCluster is being initialized",
+	}
+}
+
 func APIReady() metav1.Condition {
 	return metav1.Condition{
 		Type:               TypeAPIReady,
 		Status:             metav1.ConditionTrue,
-		Reason:             ReasonReady,
+		Reason:             ReasonAPIReady,
 		LastTransitionTime: metav1.Now(),
 		Message:            "UffizziCluster API is ready",
 	}
 }
 
+func DataStoreReady() metav1.Condition {
+	return metav1.Condition{
+		Type:               TypeDataStoreReady,
+		Status:             metav1.ConditionTrue,
+		Reason:             ReasonDataStoreReady,
+		LastTransitionTime: metav1.Now(),
+		Message:            "UffizziCluster Datastore is ready",
+	}
+}
+
 func APINotReady() metav1.Condition {
 	return metav1.Condition{
 		Type:               TypeAPIReady,
 		Status:             metav1.ConditionFalse,
-		Reason:             ReasonNotReady,
+		Reason:             ReasonAPINotReady,
 		LastTransitionTime: metav1.Now(),
 		Message:            "UffizziCluster API is not ready",
 	}
 }
 
+func DataStoreNotReady() metav1.Condition {
+	return metav1.Condition{
+		Type:               TypeDataStoreReady,
+		Status:             metav1.ConditionFalse,
+		Reason:             ReasonDataStoreNotReady,
+		LastTransitionTime: metav1.Now(),
+		Message:            "UffizziCluster Datastore is not ready",
+	}
+}
+
 func DefaultSleepState() metav1.Condition {
 	return metav1.Condition{
 		Type:               TypeSleep,
diff --git a/controllers/uffizzicluster/helm.go b/controllers/uffizzicluster/helm.go
index 9b3126e5..4ba7bde8 100644
--- a/controllers/uffizzicluster/helm.go
+++ b/controllers/uffizzicluster/helm.go
@@ -341,12 +341,11 @@ func (r *UffizziClusterReconciler) upsertVClusterK3sHelmRelease(update bool, ctx
 		if err := r.Create(ctx, newHelmRelease); err != nil {
 			return nil, errors.Wrap(err, "failed to create HelmRelease")
 		}
-		patch := client.MergeFrom(uCluster.DeepCopy())
 		uCluster.Status.LastAppliedHelmReleaseSpec = &newHelmReleaseSpec
+		patch := client.MergeFrom(uCluster.DeepCopy())
 		if err := r.Status().Patch(ctx, uCluster, patch); err != nil {
 			return nil, errors.Wrap(err, "Failed to update the default UffizziCluster lastAppliedHelmReleaseSpec")
 		}
-
 	} else if uCluster.Status.LastAppliedHelmReleaseSpec != nil {
 		// create helm release if there is no existing helm release to update
 		if update && *uCluster.Status.LastAppliedHelmReleaseSpec != newHelmReleaseSpec {
@@ -542,12 +541,12 @@ func (r *UffizziClusterReconciler) updateHelmRelease(newHelmRelease *fluxhelmv2b
 			}
 		}
 	}
-
+	helmReleasePatch := client.MergeFrom(existingHelmRelease.DeepCopy())
 	newHelmRelease.Spec.Upgrade = &fluxhelmv2beta1.Upgrade{
 		Force: true,
 	}
 	existingHelmRelease.Spec = newHelmRelease.Spec
-	if err := r.Update(ctx, existingHelmRelease); err != nil {
+	if err := r.Client.Patch(ctx, existingHelmRelease, helmReleasePatch); err != nil {
 		return errors.Wrap(err, "error while updating helm release")
 	}
 	// update the lastAppliedConfig
@@ -561,10 +560,10 @@ func (r *UffizziClusterReconciler) updateHelmRelease(newHelmRelease *fluxhelmv2b
 	}
 	updatedSpec := string(updatedSpecBytes)
 	updatedHelmReleaseSpec := string(updatedHelmReleaseSpecBytes)
-	patch := client.MergeFrom(uCluster.DeepCopy())
+	uClusterPatch := client.MergeFrom(uCluster.DeepCopy())
 	uCluster.Status.LastAppliedConfiguration = &updatedSpec
 	uCluster.Status.LastAppliedHelmReleaseSpec = &updatedHelmReleaseSpec
-	if err := r.Status().Patch(ctx, uCluster, patch); err != nil {
+	if err := r.Status().Patch(ctx, uCluster, uClusterPatch); err != nil {
 		return errors.Wrap(err, "Failed to update the default UffizziCluster lastAppliedConfig")
 	}
 	return nil
diff --git a/controllers/uffizzicluster/uffizzicluster_controller.go b/controllers/uffizzicluster/uffizzicluster_controller.go
index 2d65675b..f2b6ed4e 100644
--- a/controllers/uffizzicluster/uffizzicluster_controller.go
+++ b/controllers/uffizzicluster/uffizzicluster_controller.go
@@ -20,6 +20,7 @@ import (
 	"context"
 	"encoding/json"
 	"github.com/UffizziCloud/uffizzi-cluster-operator/controllers/constants"
+	uffizzicluster "github.com/UffizziCloud/uffizzi-cluster-operator/controllers/etcd"
 	"github.com/fluxcd/pkg/apis/meta"
 	"github.com/pkg/errors"
 	appsv1 "k8s.io/api/apps/v1"
@@ -128,6 +129,7 @@ func (r *UffizziClusterReconciler) Reconcile(ctx context.Context, req ctrl.Reque
 			intialConditions = []metav1.Condition{
 				Initializing(),
 				InitializingAPI(),
+				InitializingDataStore(),
 				DefaultSleepState(),
 			}
 			helmReleaseRef = ""
@@ -288,17 +290,27 @@ func (r *UffizziClusterReconciler) reconcileSleepState(ctx context.Context, uClu
 		Namespace: uCluster.Namespace}, ucStatefulSet); err != nil {
 		return err
 	}
+	// get the etcd stateful set created by the helm chart
+	etcdStatefulSet := &appsv1.StatefulSet{}
+	if err := r.Get(ctx, types.NamespacedName{
+		Name:      uffizzicluster.BuildEtcdHelmReleaseName(uCluster),
+		Namespace: uCluster.Namespace}, etcdStatefulSet); err != nil {
+		return err
+	}
 	// get the current replicas
 	patch := client.MergeFrom(uCluster.DeepCopy())
 	currentReplicas := ucStatefulSet.Spec.Replicas
 	// scale the vcluster instance to 0 if the sleep flag is true
 	if uCluster.Spec.Sleep && *currentReplicas > 0 {
-		if err := r.scaleStatefulSet(ctx, ucStatefulSet, 0); err != nil {
+		if err := r.scaleStatefulSet(ctx, 0, ucStatefulSet, etcdStatefulSet); err != nil {
 			return err
 		}
-		if err := r.waitForStatefulSetReady(ctx, ucStatefulSet, 0); err == nil {
+		if err := r.waitForStatefulSetToScale(ctx, 0, ucStatefulSet); err == nil {
 			setCondition(uCluster, APINotReady())
 		}
+		if err := r.waitForStatefulSetToScale(ctx, 0, etcdStatefulSet); err == nil {
+			setCondition(uCluster, DataStoreNotReady())
+		}
 		err := r.deleteWorkloads(ctx, uCluster)
 		if err != nil {
 			return err
@@ -307,7 +319,7 @@ func (r *UffizziClusterReconciler) reconcileSleepState(ctx context.Context, uClu
 		setCondition(uCluster, Sleeping(sleepingTime))
 		// if the current replicas is 0, then do nothing
 	} else if !uCluster.Spec.Sleep && *currentReplicas == 0 {
-		if err := r.scaleStatefulSet(ctx, ucStatefulSet, 1); err != nil {
+		if err := r.scaleStatefulSet(ctx, 1, etcdStatefulSet, ucStatefulSet); err != nil {
 			return err
 		}
 	}
@@ -318,9 +330,12 @@ func (r *UffizziClusterReconciler) reconcileSleepState(ctx context.Context, uClu
 		uCluster.Status.LastAwakeTime = lastAwakeTime
 		// if the above runs successfully, then set the status to awake
 		setCondition(uCluster, Awoken(lastAwakeTime))
-		if err := r.waitForStatefulSetReady(ctx, ucStatefulSet, 1); err == nil {
+		if err := r.waitForStatefulSetToScale(ctx, 1, etcdStatefulSet); err == nil {
 			setCondition(uCluster, APIReady())
 		}
+		if err := r.waitForStatefulSetToScale(ctx, 1, ucStatefulSet); err == nil {
+			setCondition(uCluster, DataStoreReady())
+		}
 	}
 	if err := r.Status().Patch(ctx, uCluster, patch); err != nil {
 		return err
@@ -329,16 +344,20 @@ func (r *UffizziClusterReconciler) reconcileSleepState(ctx context.Context, uClu
 }
 
 // scaleStatefulSet scales the stateful set to the given scale
-func (r *UffizziClusterReconciler) scaleStatefulSet(ctx context.Context, ucStatefulSet *appsv1.StatefulSet, scale int) error {
+func (r *UffizziClusterReconciler) scaleStatefulSet(ctx context.Context, scale int, statefulSets ...*appsv1.StatefulSet) error {
 	// if the current replicas is greater than 0, then scale down to 0
 	replicas := int32(scale)
-	// scale down to 0
-	ucStatefulSet.Spec.Replicas = &replicas
-	return r.Update(ctx, ucStatefulSet)
+	for _, ss := range statefulSets {
+		ss.Spec.Replicas = &replicas
+		if err := r.Update(ctx, ss); err != nil {
+			return err
+		}
+	}
+	return nil
 }
 
-// waitForStatefulSetReady is a goroutine which waits for the stateful set to be ready
-func (r *UffizziClusterReconciler) waitForStatefulSetReady(ctx context.Context, ucStatefulSet *appsv1.StatefulSet, scale int) error {
+// waitForStatefulSetToScale is a goroutine which waits for the stateful set to be ready
+func (r *UffizziClusterReconciler) waitForStatefulSetToScale(ctx context.Context, scale int, ucStatefulSet *appsv1.StatefulSet) error {
 	// wait for the StatefulSet to be ready
 	return wait.PollImmediate(time.Second*5, time.Minute*1, func() (bool, error) {
 		if err := r.Get(ctx, types.NamespacedName{
diff --git a/controllers/uffizzicluster/vcluster.go b/controllers/uffizzicluster/vcluster.go
index d58c18af..95b78561 100644
--- a/controllers/uffizzicluster/vcluster.go
+++ b/controllers/uffizzicluster/vcluster.go
@@ -223,7 +223,7 @@ type VClusterToleration struct {
 }
 
 type VClusterStorage struct {
-	Persistence bool `json:"persistence,omitempty"`
+	Persistence bool `json:"persistence"`
 }
 
 func BuildVClusterHelmReleaseName(uCluster *v1alpha1.UffizziCluster) string {