With the earlier releases, there was also an option to upgrade the CIMC and the adapters in the host firmware package as part of the last upgrade step.
This is listed part of the documentation.
"Update adapters and CIMC—If you prefer, you can upgrade the CIMC and the adapters in a host firmware package as part of the last upgrade step. Certain adapters must be upgraded in a host firmware package. "
When we activate the IOM firmware, it only applies the firmware once the FI gets rebooted.
Both would work, but I would recommend Option-1 as that is the order that is listed as per the upgrade guide.
Also which is the version you are trying to upgrade from?
If you are upgrading from a release prior to 2.1(3a), you may be impacted by CSCuh61202. This defect affects FC traffic on the Cisco 1240, Cisco 1280, and Cisco M81KR adapters. To avoid this situation and reduce the number of server reboots, you must first upgrade the adapter and server firmware using a host firmware package, and then proceed with the corresponding infrastructure upgrade. This is an exception to the normal upgrade procedure. For more details, refer to https://tools.cisco.com/bugsearch/bug/CSCuh61202.
Based on the version you are upgrading from, the order of upgrade of blade firmware can change.
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