diff --git a/pkg/plugins/update_checker.go b/pkg/plugins/update_checker.go
index 79e6c061e5d..76c566803ac 100644
--- a/pkg/plugins/update_checker.go
+++ b/pkg/plugins/update_checker.go
@@ -9,6 +9,7 @@ import (
 
 	"github.com/grafana/grafana/pkg/log"
 	"github.com/grafana/grafana/pkg/setting"
+	"github.com/hashicorp/go-version"
 )
 
 var (
@@ -85,7 +86,15 @@ func checkForUpdates() {
 		for _, gplug := range gNetPlugins {
 			if gplug.Slug == plug.Id {
 				plug.GrafanaNetVersion = gplug.Version
-				plug.GrafanaNetHasUpdate = plug.Info.Version != plug.GrafanaNetVersion
+
+				plugVersion, err1 := version.NewVersion(plug.Info.Version)
+				gplugVersion, err2 := version.NewVersion(gplug.Version)
+
+				if err1 != nil || err2 != nil {
+					plug.GrafanaNetHasUpdate = plug.Info.Version != plug.GrafanaNetVersion
+				} else {
+					plug.GrafanaNetHasUpdate = plugVersion.LessThan(gplugVersion)
+				}
 			}
 		}
 	}
@@ -117,4 +126,11 @@ func checkForUpdates() {
 		GrafanaLatestVersion = githubLatest.Stable
 		GrafanaHasUpdate = githubLatest.Stable != setting.BuildVersion
 	}
+
+	currVersion, err1 := version.NewVersion(setting.BuildVersion)
+	latestVersion, err2 := version.NewVersion(GrafanaLatestVersion)
+
+	if err1 == nil && err2 == nil {
+		GrafanaHasUpdate = currVersion.LessThan(latestVersion)
+	}
 }
diff --git a/public/views/index.html b/public/views/index.html
index a54d2c0c166..8d231ed2b68 100644
--- a/public/views/index.html
+++ b/public/views/index.html
@@ -64,13 +64,13 @@
 							<a href="http://grafana.org" target="_blank">Grafana</a>
 							<span>v[[.BuildVersion]] (commit: [[.BuildCommit]])</span>
 						</li>
-						<li>
-							[[if .NewGrafanaVersionExists]]
+						[[if .NewGrafanaVersionExists]]
+							<li>
 								<a href="http://grafana.org/download" target="_blank" bs-tooltip="'[[.NewGrafanaVersion]]'">
 									New version available!
 								</a>
-							[[end]]
-						</li>
+							</li>
+						[[end]]
 					</ul>
 				</div>
 			</footer>