diff --git a/assembly/pom.xml b/assembly/pom.xml
index abd8935339992..9f8caf4cf2da1 100644
--- a/assembly/pom.xml
+++ b/assembly/pom.xml
@@ -16,7 +16,8 @@
   ~ limitations under the License.
   -->
 
-<project xmlns="http://maven.apache.org/POM/4.0.0" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xsi:schemaLocation="http://maven.apache.org/POM/4.0.0 http://maven.apache.org/xsd/maven-4.0.0.xsd">
+<project xmlns="http://maven.apache.org/POM/4.0.0" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
+         xsi:schemaLocation="http://maven.apache.org/POM/4.0.0 http://maven.apache.org/xsd/maven-4.0.0.xsd">
   <modelVersion>4.0.0</modelVersion>
   <parent>
     <groupId>org.apache.spark</groupId>
@@ -80,51 +81,21 @@
 
   <build>
     <plugins>
-      <!-- Use the shade plugin to create a big JAR with all the dependencies -->
       <plugin>
         <groupId>org.apache.maven.plugins</groupId>
-        <artifactId>maven-shade-plugin</artifactId>
-        <configuration>
-          <shadedArtifactAttached>false</shadedArtifactAttached>
-          <outputFile>${spark.jar}</outputFile>
-          <artifactSet>
-            <includes>
-              <include>*:*</include>
-            </includes>
-          </artifactSet>
-          <filters>
-            <filter>
-              <artifact>*:*</artifact>
-              <excludes>
-                <exclude>org.datanucleus:*</exclude>
-                <exclude>META-INF/*.SF</exclude>
-                <exclude>META-INF/*.DSA</exclude>
-                <exclude>META-INF/*.RSA</exclude>
-              </excludes>
-            </filter>
-          </filters>
-        </configuration>
+        <artifactId>maven-assembly-plugin</artifactId>
         <executions>
           <execution>
+            <id>dist</id>
             <phase>package</phase>
             <goals>
-              <goal>shade</goal>
+              <goal>single</goal>
             </goals>
             <configuration>
-              <transformers>
-                <transformer implementation="org.apache.maven.plugins.shade.resource.ServicesResourceTransformer" />
-                <transformer implementation="org.apache.maven.plugins.shade.resource.AppendingTransformer">
-                  <resource>META-INF/services/org.apache.hadoop.fs.FileSystem</resource>
-                </transformer>
-                <transformer implementation="org.apache.maven.plugins.shade.resource.AppendingTransformer">
-                  <resource>reference.conf</resource>
-                </transformer>
-                <transformer implementation="org.apache.maven.plugins.shade.resource.DontIncludeResourceTransformer">
-                  <resource>log4j.properties</resource>
-                </transformer>
-                <transformer implementation="org.apache.maven.plugins.shade.resource.ApacheLicenseResourceTransformer"/>
-                <transformer implementation="org.apache.maven.plugins.shade.resource.ApacheNoticeResourceTransformer"/>
-              </transformers>
+              <finalName>${project.artifactId}-${project.version}</finalName>
+              <descriptors>
+                <descriptor>src/main/assembly/spark-dist.xml</descriptor>
+              </descriptors>
             </configuration>
           </execution>
         </executions>
@@ -153,16 +124,6 @@
         </dependency>
       </dependencies>
     </profile>
-    <profile>
-      <id>hive</id>
-      <dependencies>
-        <dependency>
-          <groupId>org.apache.spark</groupId>
-          <artifactId>spark-hive_${scala.binary.version}</artifactId>
-          <version>${project.version}</version>
-        </dependency>
-      </dependencies>
-    </profile>
     <profile>
       <id>spark-ganglia-lgpl</id>
       <dependencies>
diff --git a/assembly/src/main/assembly/spark-dist.xml b/assembly/src/main/assembly/spark-dist.xml
new file mode 100644
index 0000000000000..3bab17f66db51
--- /dev/null
+++ b/assembly/src/main/assembly/spark-dist.xml
@@ -0,0 +1,97 @@
+<!--
+  ~ Licensed to the Apache Software Foundation (ASF) under one or more
+  ~ contributor license agreements.  See the NOTICE file distributed with
+  ~ this work for additional information regarding copyright ownership.
+  ~ The ASF licenses this file to You under the Apache License, Version 2.0
+  ~ (the "License"); you may not use this file except in compliance with
+  ~ the License.  You may obtain a copy of the License at
+  ~
+  ~    http://www.apache.org/licenses/LICENSE-2.0
+  ~
+  ~ Unless required by applicable law or agreed to in writing, software
+  ~ distributed under the License is distributed on an "AS IS" BASIS,
+  ~ WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+  ~ See the License for the specific language governing permissions and
+  ~ limitations under the License.
+  -->
+<assembly>
+  <id>spark-dist</id>
+  <formats>
+    <format>dir</format>
+  </formats>
+  <includeBaseDirectory>false</includeBaseDirectory>
+
+  <fileSets>
+    <fileSet>
+      <includes>
+        <include>README</include>
+      </includes>
+    </fileSet>
+    <fileSet>
+      <directory>
+        ${project.parent.basedir}/sbin/
+      </directory>
+      <outputDirectory>/sbin</outputDirectory>
+      <includes>
+        <include>**/*</include>
+      </includes>
+    </fileSet>
+    <fileSet>
+      <directory>
+        ${project.parent.basedir}/ec2/
+      </directory>
+      <outputDirectory>/ec2</outputDirectory>
+      <includes>
+        <include>**/*</include>
+      </includes>
+    </fileSet>
+    <fileSet>
+      <directory>
+        ${project.parent.basedir}/bin/
+      </directory>
+      <outputDirectory>/bin</outputDirectory>
+      <includes>
+        <include>**/*</include>
+      </includes>
+    </fileSet>
+    <fileSet>
+      <directory>
+        ${project.parent.basedir}/conf/
+      </directory>
+      <outputDirectory>/conf</outputDirectory>
+      <includes>
+        <include>**/*.template</include>
+        <include>**/slaves</include>
+      </includes>
+    </fileSet>
+    <fileSet>
+      <directory>
+        ${project.parent.basedir}/python/
+      </directory>
+      <outputDirectory>/python</outputDirectory>
+      <includes>
+        <include>**/*</include>
+      </includes>
+    </fileSet>
+  </fileSets>
+
+  <dependencySets>
+    <dependencySet>
+      <outputDirectory>/share/spark/core</outputDirectory>
+      <includes>
+        <include>org.apache.spark:*:jar</include>
+      </includes>
+    </dependencySet>
+    <dependencySet>
+      <outputDirectory>/share/spark/core/lib</outputDirectory>
+      <useTransitiveDependencies>true</useTransitiveDependencies>
+      <unpack>false</unpack>
+      <scope>runtime</scope>
+      <useProjectArtifact>false</useProjectArtifact>
+      <excludes>
+        <exclude>org.apache.spark:*:jar</exclude>
+      </excludes>
+    </dependencySet>
+  </dependencySets>
+
+</assembly>
diff --git a/assembly/src/main/assembly/spark-examples-dist.xml b/assembly/src/main/assembly/spark-examples-dist.xml
new file mode 100644
index 0000000000000..d31ad4ac00424
--- /dev/null
+++ b/assembly/src/main/assembly/spark-examples-dist.xml
@@ -0,0 +1,48 @@
+<!--
+  ~ Licensed to the Apache Software Foundation (ASF) under one or more
+  ~ contributor license agreements.  See the NOTICE file distributed with
+  ~ this work for additional information regarding copyright ownership.
+  ~ The ASF licenses this file to You under the Apache License, Version 2.0
+  ~ (the "License"); you may not use this file except in compliance with
+  ~ the License.  You may obtain a copy of the License at
+  ~
+  ~    http://www.apache.org/licenses/LICENSE-2.0
+  ~
+  ~ Unless required by applicable law or agreed to in writing, software
+  ~ distributed under the License is distributed on an "AS IS" BASIS,
+  ~ WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+  ~ See the License for the specific language governing permissions and
+  ~ limitations under the License.
+  -->
+<assembly>
+  <id>spark-examples-dist</id>
+  <formats>
+    <format>dir</format>
+  </formats>
+  <includeBaseDirectory>false</includeBaseDirectory>
+
+  <dependencySets>
+    <dependencySet>
+      <outputDirectory>/share/spark/examples</outputDirectory>
+      <includes>
+        <include>org.apache.spark:spark-examples*:jar</include>
+      </includes>
+    </dependencySet>
+    <dependencySet>
+      <outputDirectory>/share/spark/examples/lib</outputDirectory>
+      <useTransitiveDependencies>true</useTransitiveDependencies>
+      <unpack>false</unpack>
+      <scope>runtime</scope>
+      <useProjectArtifact>false</useProjectArtifact>
+      <excludes>
+        <exclude>org.apache.spark:*:jar</exclude>
+        <exclude>org.apache.hadoop:*:jar</exclude>
+        <exclude>org.slf4j:slf4j-api</exclude>
+        <exclude>org.slf4j:slf4j-log4j12</exclude>
+        <exclude>log4j:log4j</exclude>
+        <exclude>org.scala-lang:*:jar</exclude>
+      </excludes>
+    </dependencySet>
+  </dependencySets>
+
+</assembly>
diff --git a/assembly/src/main/assembly/spark-hive-dist.xml b/assembly/src/main/assembly/spark-hive-dist.xml
new file mode 100644
index 0000000000000..b6f23600e4c69
--- /dev/null
+++ b/assembly/src/main/assembly/spark-hive-dist.xml
@@ -0,0 +1,46 @@
+<!--
+  ~ Licensed to the Apache Software Foundation (ASF) under one or more
+  ~ contributor license agreements.  See the NOTICE file distributed with
+  ~ this work for additional information regarding copyright ownership.
+  ~ The ASF licenses this file to You under the Apache License, Version 2.0
+  ~ (the "License"); you may not use this file except in compliance with
+  ~ the License.  You may obtain a copy of the License at
+  ~
+  ~    http://www.apache.org/licenses/LICENSE-2.0
+  ~
+  ~ Unless required by applicable law or agreed to in writing, software
+  ~ distributed under the License is distributed on an "AS IS" BASIS,
+  ~ WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+  ~ See the License for the specific language governing permissions and
+  ~ limitations under the License.
+  -->
+<assembly>
+  <id>spark-hive-dist</id>
+  <formats>
+    <format>dir</format>
+  </formats>
+  <includeBaseDirectory>false</includeBaseDirectory>
+  <dependencySets>
+    <dependencySet>
+      <outputDirectory>/share/spark/hive</outputDirectory>
+      <includes>
+        <include>org.apache.spark:spark-hive*:jar</include>
+      </includes>
+    </dependencySet>
+    <dependencySet>
+      <outputDirectory>/share/spark/hive/lib</outputDirectory>
+      <useTransitiveDependencies>true</useTransitiveDependencies>
+      <unpack>false</unpack>
+      <scope>runtime</scope>
+      <useProjectArtifact>false</useProjectArtifact>
+      <excludes>
+        <exclude>org.apache.spark:*:jar</exclude>
+        <exclude>org.apache.hadoop:*:jar</exclude>
+        <exclude>org.slf4j:slf4j-api</exclude>
+        <exclude>org.slf4j:slf4j-log4j12</exclude>
+        <exclude>log4j:log4j</exclude>
+        <exclude>org.scala-lang:*:jar</exclude>
+      </excludes>
+    </dependencySet>
+  </dependencySets>
+</assembly>
diff --git a/bin/compute-classpath.sh b/bin/compute-classpath.sh
index 7df43a555d562..65db73cba34f6 100755
--- a/bin/compute-classpath.sh
+++ b/bin/compute-classpath.sh
@@ -54,11 +54,27 @@ if [ -f "$ASSEMBLY_DIR"/spark-assembly*hadoop*-deps.jar ]; then
 
   ASSEMBLY_JAR=$(ls "$ASSEMBLY_DIR"/spark-assembly*hadoop*-deps.jar 2>/dev/null)
 else
-  # Else use spark-assembly jar from either RELEASE or assembly directory
   if [ -f "$FWDIR/RELEASE" ]; then
-    ASSEMBLY_JAR=$(ls "$FWDIR"/lib/spark-assembly*hadoop*.jar 2>/dev/null)
+    CLASSPATH="$CLASSPATH:$FWDIR/share/spark/core/*:$FWDIR/share/spark/core/lib/*"
+    if [ -d "$FWDIR/share/spark/hive" ]; then
+      CLASSPATH="$CLASSPATH:$FWDIR/share/spark/hive/*:$FWDIR/share/spark/hive/lib/*"
+    fi
+    if [ -d "$FWDIR/share/spark/examples" ]; then
+      CLASSPATH="$CLASSPATH:$FWDIR/share/spark/examples/*:$FWDIR/share/spark/examples/lib/*"
+    fi
   else
-    ASSEMBLY_JAR=$(ls "$ASSEMBLY_DIR"/spark-assembly*hadoop*.jar 2>/dev/null)
+    SPARK_DIST=`echo "$FWDIR"/assembly/target/*spark-dist`
+    if [ -d "$SPARK_DIST" ]; then
+      CLASSPATH="$CLASSPATH:$SPARK_DIST/share/spark/core/*:$SPARK_DIST/share/spark/core/lib/*"
+    fi
+    if [ -d "$FWDIR"/sql/hive/target/*spark-hive-dist/ ]; then
+      HVIE_DIST=`echo "$FWDIR"/sql/hive/target/*spark-hive-dist`
+      CLASSPATH="$CLASSPATH:$HVIE_DIST/share/spark/hive/*:$HVIE_DIST/share/spark/hive/lib/*"
+    fi
+    ASSEMBLY_JAR=`echo "$ASSEMBLY_DIR"/spark-assembly*hadoop*.jar`
+    if [ -f "$ASSEMBLY_JAR" ]; then
+     CLASSPATH="$CLASSPATH:$ASSEMBLY_JAR"
+    fi
   fi
 fi
 
diff --git a/bin/spark-class b/bin/spark-class
index 6480ccb58d6aa..302b6a89ac02c 100755
--- a/bin/spark-class
+++ b/bin/spark-class
@@ -110,18 +110,20 @@ export JAVA_OPTS
 
 if [ ! -f "$FWDIR/RELEASE" ]; then
   # Exit if the user hasn't compiled Spark
-  num_jars=$(ls "$FWDIR"/assembly/target/scala-$SCALA_VERSION/ | grep "spark-assembly.*hadoop.*.jar" | wc -l)
-  jars_list=$(ls "$FWDIR"/assembly/target/scala-$SCALA_VERSION/ | grep "spark-assembly.*hadoop.*.jar")
-  if [ "$num_jars" -eq "0" ]; then
-    echo "Failed to find Spark assembly in $FWDIR/assembly/target/scala-$SCALA_VERSION/" >&2
-    echo "You need to build Spark before running this program." >&2
-    exit 1
-  fi
-  if [ "$num_jars" -gt "1" ]; then
-    echo "Found multiple Spark assembly jars in $FWDIR/assembly/target/scala-$SCALA_VERSION:" >&2
-    echo "$jars_list"
-    echo "Please remove all but one jar."
-    exit 1
+  if [ ! -d "$FWDIR"/assembly/target/*spark-dist/ ]; then
+    num_jars=$(ls "$FWDIR"/assembly/target/scala-$SCALA_VERSION/ | grep "spark-assembly.*hadoop.*.jar" | wc -l)
+    jars_list=$(ls "$FWDIR"/assembly/target/scala-$SCALA_VERSION/ | grep "spark-assembly.*hadoop.*.jar")
+    if [ "$num_jars" -eq "0" ]; then
+      echo "Failed to find Spark assembly in $FWDIR/assembly/target/" >&2
+      echo "You need to build Spark with './make-distribution.sh' before running this program." >&2
+      exit 1
+    fi
+    if [ "$num_jars" -gt "1" ]; then
+      echo "Found multiple Spark assembly jars in $FWDIR/assembly/target/scala-$SCALA_VERSION:" >&2
+      echo "$jars_list"
+      echo "Please remove all but one jar."
+      exit 1
+    fi
   fi
 fi
 
diff --git a/examples/pom.xml b/examples/pom.xml
index 874bcd7916f35..ba4403f096ca1 100644
--- a/examples/pom.xml
+++ b/examples/pom.xml
@@ -16,7 +16,8 @@
   ~ limitations under the License.
   -->
 
-<project xmlns="http://maven.apache.org/POM/4.0.0" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xsi:schemaLocation="http://maven.apache.org/POM/4.0.0 http://maven.apache.org/xsd/maven-4.0.0.xsd">
+<project xmlns="http://maven.apache.org/POM/4.0.0" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
+         xsi:schemaLocation="http://maven.apache.org/POM/4.0.0 http://maven.apache.org/xsd/maven-4.0.0.xsd">
   <modelVersion>4.0.0</modelVersion>
   <parent>
     <groupId>org.apache.spark</groupId>
@@ -183,42 +184,19 @@
     <plugins>
       <plugin>
         <groupId>org.apache.maven.plugins</groupId>
-        <artifactId>maven-shade-plugin</artifactId>
-        <configuration>
-          <shadedArtifactAttached>false</shadedArtifactAttached>
-          <outputFile>${project.build.directory}/scala-${scala.binary.version}/spark-examples-${project.version}-hadoop${hadoop.version}.jar</outputFile>
-          <artifactSet>
-            <includes>
-              <include>*:*</include>
-            </includes>
-          </artifactSet>
-          <filters>
-            <filter>
-              <artifact>*:*</artifact>
-              <excludes>
-                <exclude>META-INF/*.SF</exclude>
-                <exclude>META-INF/*.DSA</exclude>
-                <exclude>META-INF/*.RSA</exclude>
-              </excludes>
-            </filter>
-          </filters>
-        </configuration>
+        <artifactId>maven-assembly-plugin</artifactId>
         <executions>
           <execution>
+            <id>dist</id>
             <phase>package</phase>
             <goals>
-              <goal>shade</goal>
+              <goal>single</goal>
             </goals>
             <configuration>
-              <transformers>
-                <transformer implementation="org.apache.maven.plugins.shade.resource.ServicesResourceTransformer" />
-                <transformer implementation="org.apache.maven.plugins.shade.resource.AppendingTransformer">
-                  <resource>reference.conf</resource>
-                </transformer>
-                <transformer implementation="org.apache.maven.plugins.shade.resource.DontIncludeResourceTransformer">
-                  <resource>log4j.properties</resource>
-                </transformer>
-              </transformers>
+              <finalName>${project.artifactId}-${project.version}</finalName>
+              <descriptors>
+                <descriptor>../assembly/src/main/assembly/spark-examples-dist.xml</descriptor>
+              </descriptors>
             </configuration>
           </execution>
         </executions>
diff --git a/make-distribution.sh b/make-distribution.sh
index 7a08d6b9151c4..7b78a2b10a3b7 100755
--- a/make-distribution.sh
+++ b/make-distribution.sh
@@ -164,19 +164,19 @@ ${BUILD_COMMAND}
 
 # Make directories
 rm -rf "$DISTDIR"
-mkdir -p "$DISTDIR/lib"
+mkdir -p "$DISTDIR"
 echo "Spark $VERSION built for Hadoop $SPARK_HADOOP_VERSION" > "$DISTDIR/RELEASE"
 
 # Copy jars
-cp $FWDIR/assembly/target/scala*/*assembly*hadoop*.jar "$DISTDIR/lib/"
-cp $FWDIR/examples/target/scala*/spark-examples*.jar "$DISTDIR/lib/"
+cp -r  $FWDIR/assembly/target/*spark-dist/* "$DISTDIR/"
+cp -r  $FWDIR/examples/target/*spark-examples-dist/* "$DISTDIR/"
 
 # Copy example sources (needed for python and SQL)
-mkdir -p "$DISTDIR/examples/src/main"
-cp -r $FWDIR/examples/src/main "$DISTDIR/examples/src/" 
+mkdir -p "$DISTDIR//share/spark/examples/src/main"
+cp -r $FWDIR/examples/src/main "$DISTDIR//share/spark/examples/src/main" 
 
 if [ "$SPARK_HIVE" == "true" ]; then
-  cp $FWDIR/lib_managed/jars/datanucleus*.jar "$DISTDIR/lib/"
+  cp -r  $FWDIR/sql/hive/target/*spark-hive-dist/* "$DISTDIR/"
 fi
 
 # Copy license and ASF files
@@ -187,15 +187,6 @@ if [ -e $FWDIR/CHANGES.txt ]; then
   cp "$FWDIR/CHANGES.txt" "$DISTDIR"
 fi
 
-# Copy other things
-mkdir "$DISTDIR"/conf
-cp "$FWDIR"/conf/*.template "$DISTDIR"/conf
-cp "$FWDIR"/conf/slaves "$DISTDIR"/conf
-cp -r "$FWDIR/bin" "$DISTDIR"
-cp -r "$FWDIR/python" "$DISTDIR"
-cp -r "$FWDIR/sbin" "$DISTDIR"
-cp -r "$FWDIR/ec2" "$DISTDIR"
-
 # Download and copy in tachyon, if requested
 if [ "$SPARK_TACHYON" == "true" ]; then
   TACHYON_VERSION="0.4.1"
diff --git a/pom.xml b/pom.xml
index 786b6d4984d86..85c6636203f6b 100644
--- a/pom.xml
+++ b/pom.xml
@@ -94,7 +94,6 @@
     <module>streaming</module>
     <module>sql/catalyst</module>
     <module>sql/core</module>
-    <module>sql/hive</module>
     <module>repl</module>
     <module>assembly</module>
     <module>external/twitter</module>
@@ -978,6 +977,12 @@
         <module>yarn</module>
       </modules>
     </profile>
+    <profile>
+      <id>hive</id>
+      <modules>
+        <module>sql/hive</module>
+      </modules>
+    </profile>
 
     <!-- Build without Hadoop dependencies that are included in some runtime environments. -->
     <profile>
diff --git a/sql/hive/pom.xml b/sql/hive/pom.xml
index 4d0b2fa1452a2..7844cdf1f4bf5 100644
--- a/sql/hive/pom.xml
+++ b/sql/hive/pom.xml
@@ -37,11 +37,13 @@
       <groupId>org.apache.spark</groupId>
       <artifactId>spark-core_${scala.binary.version}</artifactId>
       <version>${project.version}</version>
+      <scope>provided</scope>
     </dependency>
     <dependency>
       <groupId>org.apache.spark</groupId>
       <artifactId>spark-sql_${scala.binary.version}</artifactId>
       <version>${project.version}</version>
+      <scope>provided</scope>
     </dependency>
     <dependency>
       <groupId>org.spark-project.hive</groupId>
@@ -66,6 +68,7 @@
     <dependency>
       <groupId>org.codehaus.jackson</groupId>
       <artifactId>jackson-mapper-asl</artifactId>
+      <scope>provided</scope>
     </dependency>
     <dependency>
       <groupId>org.spark-project.hive</groupId>
@@ -110,26 +113,21 @@
         <groupId>org.scalatest</groupId>
         <artifactId>scalatest-maven-plugin</artifactId>
       </plugin>
-
-      <!-- Deploy datanucleus jars to the spark/lib_managed/jars directory -->
       <plugin>
         <groupId>org.apache.maven.plugins</groupId>
-        <artifactId>maven-dependency-plugin</artifactId>
-        <version>2.4</version>
+        <artifactId>maven-assembly-plugin</artifactId>
         <executions>
           <execution>
-            <id>copy-dependencies</id>
+            <id>dist</id>
             <phase>package</phase>
             <goals>
-              <goal>copy-dependencies</goal>
+              <goal>single</goal>
             </goals>
             <configuration>
-              <!-- basedir is spark/sql/hive/ -->
-              <outputDirectory>${basedir}/../../lib_managed/jars</outputDirectory>
-              <overWriteReleases>false</overWriteReleases>
-              <overWriteSnapshots>false</overWriteSnapshots>
-              <overWriteIfNewer>true</overWriteIfNewer>
-              <includeGroupIds>org.datanucleus</includeGroupIds>
+              <finalName>${project.artifactId}-${project.version}</finalName>
+              <descriptors>
+                <descriptor>../../assembly/src/main/assembly/spark-hive-dist.xml</descriptor>
+              </descriptors>
             </configuration>
           </execution>
         </executions>