diff --git a/apps/openstacknode/network-cfg.json b/apps/openstacknode/network-cfg.json
new file mode 100644
index 0000000..959b4b3
--- /dev/null
+++ b/apps/openstacknode/network-cfg.json
@@ -0,0 +1,34 @@
+{
+    "apps" : {
+        "org.onosproject.openstacknode" : {
+            "openstacknode" : {
+                "nodes" : [
+                            {
+                                    "hostname" : "compute-01",
+                                    "ovsdbIp" : "192.168.56.112",
+                                    "ovsdbPort" : "6640",
+                                    "bridgeId" : "of:0000000000000001",
+                                    "openstackNodeType" : "COMPUTENODE"
+                            },
+                            {
+                                    "hostname" : "compute-02",
+                                    "ovsdbIp" : "192.168.56.106",
+                                    "ovsdbPort" : "6640",
+                                    "bridgeId" : "of:0000000000000002",
+                                    "openstackNodeType" : "COMPUTENODE"
+                            },
+                            {
+                                    "hostname" : "network",
+                                    "ovsdbIp" : "192.168.56.108",
+                                    "ovsdbPort" : "6640",
+                                    "bridgeId" : "of:0000000000000003",
+                                    "openstackNodeType" : "GATEWAYNODE",
+                                    "gatewayExternalInterfaceName" : "eth1",
+                                    "gatewayExternalInterfaceMac" : "00:00:00:00:00:10"
+                            }
+                ]
+            }
+        }
+    }
+}
+
diff --git a/apps/openstacknode/pom.xml b/apps/openstacknode/pom.xml
new file mode 100644
index 0000000..f97f890
--- /dev/null
+++ b/apps/openstacknode/pom.xml
@@ -0,0 +1,73 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<!--
+  ~ Copyright 2016 Open Networking Laboratory
+  ~
+  ~ Licensed 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.
+  -->
+<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.onosproject</groupId>
+        <artifactId>onos-apps</artifactId>
+        <version>1.5.0-SNAPSHOT</version>
+        <relativePath>../pom.xml</relativePath>
+    </parent>
+
+    <artifactId>onos-app-openstacknode</artifactId>
+    <packaging>bundle</packaging>
+
+    <description>SONA Openstack Node Bootstrap Application</description>
+
+
+    <properties>
+        <onos.app.name>org.onosproject.openstacknode</onos.app.name>
+        <onos.app.category>default</onos.app.category>
+        <onos.app.url>http://onosproject.org</onos.app.url>
+        <onos.app.readme>SONA Openstack Node Bootstrap Application</onos.app.readme>
+        <onos.app.requires>
+            org.onosproject.ovsdb
+        </onos.app.requires>
+    </properties>
+
+    <dependencies>
+        <dependency>
+            <groupId>org.osgi</groupId>
+            <artifactId>org.osgi.compendium</artifactId>
+        </dependency>
+        <dependency>
+            <groupId>org.onosproject</groupId>
+            <artifactId>onos-api</artifactId>
+        </dependency>
+        <dependency>
+            <groupId>org.onosproject</groupId>
+            <artifactId>onos-core-serializers</artifactId>
+            <version>${project.version}</version>
+        </dependency>
+        <dependency>
+            <groupId>org.onosproject</groupId>
+            <artifactId>onos-ovsdb-api</artifactId>
+            <version>${project.version}</version>
+        </dependency>
+        <dependency>
+            <groupId>com.fasterxml.jackson.core</groupId>
+            <artifactId>jackson-databind</artifactId>
+        </dependency>
+        <dependency>
+            <groupId>com.fasterxml.jackson.core</groupId>
+            <artifactId>jackson-annotations</artifactId>
+        </dependency>
+    </dependencies>
+</project>
diff --git a/apps/openstacknode/src/main/java/org/onosproject/openstacknode/ConnectionHandler.java b/apps/openstacknode/src/main/java/org/onosproject/openstacknode/ConnectionHandler.java
new file mode 100644
index 0000000..95a90a1
--- /dev/null
+++ b/apps/openstacknode/src/main/java/org/onosproject/openstacknode/ConnectionHandler.java
@@ -0,0 +1,35 @@
+/*
+ * Copyright 2016 Open Networking Laboratory
+ *
+ * Licensed 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.
+ */
+package org.onosproject.openstacknode;
+
+/**
+ * Entity capable of handling a subject connected and disconnected situation.
+ */
+public interface ConnectionHandler<T> {
+    /**
+     * Processes the connected subject.
+     *
+     * @param subject subject
+     */
+    void connected(T subject);
+
+    /**
+     * Processes the disconnected subject.
+     *
+     * @param subject subject.
+     */
+    void disconnected(T subject);
+}
diff --git a/apps/openstacknode/src/main/java/org/onosproject/openstacknode/OpenstackNode.java b/apps/openstacknode/src/main/java/org/onosproject/openstacknode/OpenstackNode.java
new file mode 100644
index 0000000..a96b5ac
--- /dev/null
+++ b/apps/openstacknode/src/main/java/org/onosproject/openstacknode/OpenstackNode.java
@@ -0,0 +1,196 @@
+/*
+ * Copyright 2016 Open Networking Laboratory
+ *
+ * Licensed 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.
+ */
+package org.onosproject.openstacknode;
+
+import com.google.common.base.MoreObjects;
+import org.onlab.packet.IpAddress;
+import org.onlab.packet.MacAddress;
+import org.onlab.packet.TpPort;
+import org.onosproject.net.DeviceId;
+
+import java.util.Comparator;
+import java.util.Objects;
+
+import static com.google.common.base.Preconditions.checkNotNull;
+
+/**
+ * Representation of a compute/gateway node for OpenstackSwitching/Routing service.
+ */
+public final class OpenstackNode {
+
+    private final String hostName;
+    private final IpAddress ovsdbIp;
+    private final TpPort ovsdbPort;
+    private final DeviceId bridgeId;
+    private final OpenstackNodeService.OpenstackNodeType openstackNodeType;
+    private final String gatewayExternalInterfaceName;
+    private final MacAddress gatewayExternalInterfaceMac;
+    private static final String OVSDB = "ovsdb:";
+
+
+    public static final Comparator<OpenstackNode> OPENSTACK_NODE_COMPARATOR =
+            (node1, node2) -> node1.hostName().compareTo(node2.hostName());
+
+    /**
+     * Creates a new node.
+     *
+     * @param hostName hostName
+     * @param ovsdbIp OVSDB server IP address
+     * @param ovsdbPort OVSDB server port number
+     * @param bridgeId integration bridge identifier
+     * @param openstackNodeType openstack node type
+     * @param gatewayExternalInterfaceName gatewayExternalInterfaceName
+     * @param gatewayExternalInterfaceMac gatewayExternalInterfaceMac
+     */
+    public OpenstackNode(String hostName, IpAddress ovsdbIp, TpPort ovsdbPort, DeviceId bridgeId,
+                         OpenstackNodeService.OpenstackNodeType openstackNodeType,
+                         String gatewayExternalInterfaceName,
+                         MacAddress gatewayExternalInterfaceMac) {
+        this.hostName = checkNotNull(hostName, "hostName cannot be null");
+        this.ovsdbIp = checkNotNull(ovsdbIp, "ovsdbIp cannot be null");
+        this.ovsdbPort = checkNotNull(ovsdbPort, "ovsdbPort cannot be null");
+        this.bridgeId = checkNotNull(bridgeId, "bridgeId cannot be null");
+        this.openstackNodeType = checkNotNull(openstackNodeType, "openstackNodeType cannot be null");
+        this.gatewayExternalInterfaceName = gatewayExternalInterfaceName;
+        this.gatewayExternalInterfaceMac = gatewayExternalInterfaceMac;
+
+        if (openstackNodeType == OpenstackNodeService.OpenstackNodeType.GATEWAYNODE) {
+            checkNotNull(gatewayExternalInterfaceName, "gatewayExternalInterfaceName cannot be null");
+            checkNotNull(gatewayExternalInterfaceMac, "gatewayExternalInterfaceMac cannot be null");
+        }
+    }
+
+    /**
+     * Returns the OVSDB server IP address.
+     *
+     * @return ip address
+     */
+    public IpAddress ovsdbIp() {
+        return this.ovsdbIp;
+    }
+
+    /**
+     * Returns the OVSDB server port number.
+     *
+     * @return port number
+     */
+    public TpPort ovsdbPort() {
+        return this.ovsdbPort;
+    }
+
+    /**
+     * Returns the hostName.
+     *
+     * @return hostName
+     */
+    public String hostName() {
+        return this.hostName;
+    }
+
+    /**
+     * Returns the identifier of the integration bridge.
+     *
+     * @return device id
+     */
+    public DeviceId intBrId() {
+        return this.bridgeId;
+    }
+
+    /**
+     * Returns the identifier of the OVSDB device.
+     *
+     * @return device id
+     */
+    public DeviceId ovsdbId() {
+        return DeviceId.deviceId(OVSDB.concat(this.ovsdbIp.toString()));
+    }
+
+    /**
+     * Returns the openstack node type.
+     *
+     * @return openstack node type
+     */
+    public OpenstackNodeService.OpenstackNodeType openstackNodeType() {
+        return this.openstackNodeType;
+    }
+
+    /**
+     * Returns the gatewayExternalInterfaceName.
+     *
+     * @return gatewayExternalInterfaceName
+     */
+    public String gatewayExternalInterfaceName() {
+        return this.gatewayExternalInterfaceName;
+    }
+
+    /**
+     * Returns the gatewayExternalInterfaceMac.
+     *
+     * @return gatewayExternalInterfaceMac
+     */
+    public MacAddress gatewayExternalInterfaceMac() {
+        return this.gatewayExternalInterfaceMac;
+    }
+
+    @Override
+    public boolean equals(Object obj) {
+        if (this == obj) {
+            return true;
+        }
+
+        if (obj instanceof OpenstackNode) {
+            OpenstackNode that = (OpenstackNode) obj;
+
+            if (Objects.equals(hostName, that.hostName) &&
+                    Objects.equals(ovsdbIp, that.ovsdbIp) &&
+                    Objects.equals(ovsdbPort, that.ovsdbPort) &&
+                    Objects.equals(bridgeId, that.bridgeId) &&
+                    Objects.equals(openstackNodeType, that.openstackNodeType)) {
+                return true;
+            }
+        }
+        return false;
+    }
+
+    @Override
+    public int hashCode() {
+        return Objects.hash(hostName, ovsdbIp, ovsdbPort, bridgeId, openstackNodeType);
+    }
+
+    @Override
+    public String toString() {
+        if (openstackNodeType == OpenstackNodeService.OpenstackNodeType.COMPUTENODE) {
+            return MoreObjects.toStringHelper(getClass())
+                    .add("host", hostName)
+                    .add("ip", ovsdbIp)
+                    .add("port", ovsdbPort)
+                    .add("bridgeId", bridgeId)
+                    .add("openstacknodetype", openstackNodeType)
+                    .toString();
+        } else {
+            return MoreObjects.toStringHelper(getClass())
+                    .add("host", hostName)
+                    .add("ip", ovsdbIp)
+                    .add("port", ovsdbPort)
+                    .add("bridgeId", bridgeId)
+                    .add("openstacknodetype", openstackNodeType)
+                    .add("gatewayExternalInterfaceName", gatewayExternalInterfaceName)
+                    .add("gatewayExternalInterfaceMac", gatewayExternalInterfaceMac)
+                    .toString();
+        }
+    }
+}
+
diff --git a/apps/openstacknode/src/main/java/org/onosproject/openstacknode/OpenstackNodeConfig.java b/apps/openstacknode/src/main/java/org/onosproject/openstacknode/OpenstackNodeConfig.java
new file mode 100644
index 0000000..ffd45ca
--- /dev/null
+++ b/apps/openstacknode/src/main/java/org/onosproject/openstacknode/OpenstackNodeConfig.java
@@ -0,0 +1,89 @@
+/*
+ * Copyright 2016 Open Networking Laboratory
+ *
+ * Licensed 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.
+ */
+package org.onosproject.openstacknode;
+
+
+import com.fasterxml.jackson.databind.JsonNode;
+import com.google.common.collect.Sets;
+import org.onlab.packet.Ip4Address;
+import org.onlab.packet.MacAddress;
+import org.onlab.packet.TpPort;
+import org.onosproject.core.ApplicationId;
+import org.onosproject.net.DeviceId;
+import org.slf4j.Logger;
+import java.util.Set;
+import org.onosproject.net.config.Config;
+import static org.slf4j.LoggerFactory.getLogger;
+
+/**
+ * Configuration object for OpensatckNode service.
+ */
+public class OpenstackNodeConfig extends Config<ApplicationId> {
+
+    protected final Logger log = getLogger(getClass());
+
+
+    public static final String NODES = "nodes";
+    public static final String HOST_NAME = "hostname";
+    public static final String OVSDB_IP = "ovsdbIp";
+    public static final String OVSDB_PORT = "ovsdbPort";
+    public static final String BRIDGE_ID = "bridgeId";
+    public static final String NODE_TYPE = "openstackNodeType";
+    public static final String GATEWAY_EXTERNAL_INTERFACE_NAME = "gatewayExternalInterfaceName";
+    public static final String GATEWAY_EXTERNAL_INTERFACE_MAC = "gatewayExternalInterfaceMac";
+
+    /**
+     * Returns the set of nodes read from network config.
+     *
+     * @return set of OpensatckNodeConfig or null
+     */
+    public Set<OpenstackNode> openstackNodes() {
+
+        Set<OpenstackNode> nodes = Sets.newHashSet();
+
+        JsonNode jsonNodes = object.get(NODES);
+        if (jsonNodes == null) {
+            return null;
+        }
+
+        jsonNodes.forEach(jsonNode -> {
+            try {
+                if (OpenstackNodeService.OpenstackNodeType.valueOf(jsonNode.path(NODE_TYPE).asText()) ==
+                        OpenstackNodeService.OpenstackNodeType.COMPUTENODE) {
+                    nodes.add(new OpenstackNode(
+                            jsonNode.path(HOST_NAME).asText(),
+                            Ip4Address.valueOf(jsonNode.path(OVSDB_IP).asText()),
+                            TpPort.tpPort(jsonNode.path(OVSDB_PORT).asInt()),
+                            DeviceId.deviceId(jsonNode.path(BRIDGE_ID).asText()),
+                            OpenstackNodeService.OpenstackNodeType.valueOf(jsonNode.path(NODE_TYPE).asText()),
+                            null, MacAddress.NONE));
+                } else {
+                    nodes.add(new OpenstackNode(
+                            jsonNode.path(HOST_NAME).asText(),
+                            Ip4Address.valueOf(jsonNode.path(OVSDB_IP).asText()),
+                            TpPort.tpPort(jsonNode.path(OVSDB_PORT).asInt()),
+                            DeviceId.deviceId(jsonNode.path(BRIDGE_ID).asText()),
+                            OpenstackNodeService.OpenstackNodeType.valueOf(jsonNode.path(NODE_TYPE).asText()),
+                            jsonNode.path(GATEWAY_EXTERNAL_INTERFACE_NAME).asText(),
+                            MacAddress.valueOf(jsonNode.path(GATEWAY_EXTERNAL_INTERFACE_MAC).asText())));
+                }
+            } catch (IllegalArgumentException | NullPointerException e) {
+                log.error("Failed to read {}", e.toString());
+            }
+        });
+        return nodes;
+    }
+}
diff --git a/apps/openstacknode/src/main/java/org/onosproject/openstacknode/OpenstackNodeManager.java b/apps/openstacknode/src/main/java/org/onosproject/openstacknode/OpenstackNodeManager.java
new file mode 100644
index 0000000..28b41cf
--- /dev/null
+++ b/apps/openstacknode/src/main/java/org/onosproject/openstacknode/OpenstackNodeManager.java
@@ -0,0 +1,630 @@
+/*
+ * Copyright 2016 Open Networking Laboratory
+ *
+ * Licensed 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.
+ */
+package org.onosproject.openstacknode;
+
+import com.google.common.collect.ImmutableMap;
+import com.google.common.collect.Sets;
+import org.apache.felix.scr.annotations.Activate;
+import org.apache.felix.scr.annotations.Component;
+import org.apache.felix.scr.annotations.Deactivate;
+import org.apache.felix.scr.annotations.Reference;
+import org.apache.felix.scr.annotations.ReferenceCardinality;
+import org.apache.felix.scr.annotations.Service;
+import org.onlab.util.ItemNotFoundException;
+import org.onlab.util.KryoNamespace;
+import org.onosproject.cluster.ClusterService;
+import org.onosproject.core.ApplicationId;
+import org.onosproject.core.CoreService;
+import org.onosproject.net.DefaultAnnotations;
+import org.onosproject.net.Device;
+import org.onosproject.net.DeviceId;
+import org.onosproject.net.Port;
+import org.onosproject.net.behaviour.BridgeConfig;
+import org.onosproject.net.behaviour.BridgeName;
+import org.onosproject.net.behaviour.ControllerInfo;
+import org.onosproject.net.behaviour.DefaultTunnelDescription;
+import org.onosproject.net.behaviour.TunnelConfig;
+import org.onosproject.net.behaviour.TunnelDescription;
+import org.onosproject.net.behaviour.TunnelName;
+import org.onosproject.net.config.ConfigFactory;
+import org.onosproject.net.config.NetworkConfigEvent;
+import org.onosproject.net.config.NetworkConfigListener;
+import org.onosproject.net.config.NetworkConfigRegistry;
+import org.onosproject.net.config.NetworkConfigService;
+import org.onosproject.net.config.basics.SubjectFactories;
+import org.onosproject.net.device.DeviceAdminService;
+import org.onosproject.net.device.DeviceEvent;
+import org.onosproject.net.device.DeviceListener;
+import org.onosproject.net.device.DeviceService;
+import org.onosproject.net.driver.DriverHandler;
+import org.onosproject.net.driver.DriverService;
+import org.onosproject.ovsdb.controller.OvsdbClientService;
+import org.onosproject.ovsdb.controller.OvsdbController;
+import org.onosproject.ovsdb.controller.OvsdbNodeId;
+import org.onosproject.store.serializers.KryoNamespaces;
+import org.onosproject.store.service.ConsistentMap;
+import org.onosproject.store.service.Serializer;
+import org.onosproject.store.service.StorageService;
+import org.slf4j.Logger;
+
+import static org.onlab.util.Tools.groupedThreads;
+import static org.onosproject.net.Device.Type.SWITCH;
+import static org.onosproject.net.behaviour.TunnelDescription.Type.VXLAN;
+import static org.slf4j.LoggerFactory.getLogger;
+
+import java.util.ArrayList;
+import java.util.List;
+import java.util.Map;
+import java.util.concurrent.ExecutorService;
+import java.util.concurrent.Executors;
+import java.util.stream.Collectors;
+
+import static com.google.common.base.Preconditions.checkNotNull;
+
+
+/**
+ * Initializes devices in compute/gateway nodes according to there type.
+ */
+@Component(immediate = true)
+@Service
+public class OpenstackNodeManager implements OpenstackNodeService {
+    protected final Logger log = getLogger(getClass());
+    private static final int NUM_THREADS = 1;
+    private static final KryoNamespace.Builder NODE_SERIALIZER = KryoNamespace.newBuilder()
+            .register(KryoNamespaces.API)
+            .register(OpenstackNode.class)
+            .register(OpenstackNodeType.class)
+            .register(NodeState.class);
+    private static final String DEFAULT_BRIDGE = "br-int";
+    private static final String DEFAULT_TUNNEL = "vxlan";
+    private static final String PORT_NAME = "portName";
+    private static final String OPENSTACK_NODESTORE = "openstacknode-nodestore";
+    private static final String OPENSTACK_NODEMANAGER_ID = "org.onosproject.openstacknode";
+
+    private static final Map<String, String> DEFAULT_TUNNEL_OPTIONS
+            = ImmutableMap.of("key", "flow", "remote_ip", "flow");
+
+    private static final int DPID_BEGIN = 3;
+    private static final int OFPORT = 6653;
+
+    @Reference(cardinality = ReferenceCardinality.MANDATORY_UNARY)
+    protected CoreService coreService;
+
+    @Reference(cardinality = ReferenceCardinality.MANDATORY_UNARY)
+    protected DeviceService deviceService;
+
+    @Reference(cardinality = ReferenceCardinality.MANDATORY_UNARY)
+    protected OvsdbController controller;
+
+    @Reference(cardinality = ReferenceCardinality.MANDATORY_UNARY)
+    protected ClusterService clusterService;
+
+    @Reference(cardinality = ReferenceCardinality.MANDATORY_UNARY)
+    protected DriverService driverService;
+
+    @Reference(cardinality = ReferenceCardinality.MANDATORY_UNARY)
+    protected DeviceAdminService adminService;
+
+    @Reference(cardinality = ReferenceCardinality.MANDATORY_UNARY)
+    protected StorageService storageService;
+
+    @Reference(cardinality = ReferenceCardinality.MANDATORY_UNARY)
+    protected NetworkConfigService configService;
+
+    @Reference(cardinality = ReferenceCardinality.MANDATORY_UNARY)
+    protected NetworkConfigRegistry configRegistry;
+
+    private final OvsdbHandler ovsdbHandler = new OvsdbHandler();
+    private final BridgeHandler bridgeHandler = new BridgeHandler();
+    private final NetworkConfigListener configListener = new InternalConfigListener();
+    private final ConfigFactory configFactory =
+            new ConfigFactory(SubjectFactories.APP_SUBJECT_FACTORY, OpenstackNodeConfig.class, "openstacknode") {
+                @Override
+                public OpenstackNodeConfig createConfig() {
+                    return new OpenstackNodeConfig();
+                }
+            };
+
+    private final ExecutorService eventExecutor = Executors
+            .newFixedThreadPool(NUM_THREADS, groupedThreads("onos/openstacknode", "event-handler"));
+
+    private final DeviceListener deviceListener = new InternalDeviceListener();
+
+    private ApplicationId appId;
+    private ConsistentMap<OpenstackNode, NodeState> nodeStore;
+
+    private enum NodeState {
+
+        INIT {
+            @Override
+            public void process(OpenstackNodeManager openstackNodeManager, OpenstackNode node) {
+                openstackNodeManager.connect(node);
+            }
+        },
+        OVSDB_CONNECTED {
+            @Override
+            public void process(OpenstackNodeManager openstackNodeManager, OpenstackNode node) {
+                if (!openstackNodeManager.getOvsdbConnectionState(node)) {
+                    openstackNodeManager.connect(node);
+                } else {
+                    openstackNodeManager.createIntegrationBridge(node);
+                }
+            }
+        },
+        BRIDGE_CREATED {
+            @Override
+            public void process(OpenstackNodeManager openstackNodeManager, OpenstackNode node) {
+                if (!openstackNodeManager.getOvsdbConnectionState(node)) {
+                    openstackNodeManager.connect(node);
+                } else {
+                    openstackNodeManager.createTunnelInterface(node);
+                }
+            }
+        },
+        COMPLETE {
+            @Override
+            public void process(OpenstackNodeManager openstackNodeManager, OpenstackNode node) {
+                openstackNodeManager.postInit(node);
+            }
+        },
+        INCOMPLETE {
+            @Override
+            public void process(OpenstackNodeManager openstackNodeManager, OpenstackNode node) {
+            }
+        };
+
+        public abstract void process(OpenstackNodeManager openstackNodeManager, OpenstackNode node);
+    }
+
+    @Activate
+    protected void activate() {
+        appId = coreService.registerApplication(OPENSTACK_NODEMANAGER_ID);
+        nodeStore = storageService.<OpenstackNode, NodeState>consistentMapBuilder()
+                .withSerializer(Serializer.using(NODE_SERIALIZER.build()))
+                .withName(OPENSTACK_NODESTORE)
+                .withApplicationId(appId)
+                .build();
+
+        deviceService.addListener(deviceListener);
+        configRegistry.registerConfigFactory(configFactory);
+        configService.addListener(configListener);
+        readConfiguration();
+
+        log.info("Started");
+    }
+
+    @Deactivate
+    protected void deactivate() {
+        deviceService.removeListener(deviceListener);
+        eventExecutor.shutdown();
+        nodeStore.clear();
+
+        configRegistry.unregisterConfigFactory(configFactory);
+        configService.removeListener(configListener);
+
+        log.info("Stopped");
+    }
+
+
+    @Override
+    public void addNode(OpenstackNode node) {
+        checkNotNull(node, "Node cannot be null");
+
+        nodeStore.putIfAbsent(node, checkNodeState(node));
+
+        NodeState state = checkNodeState(node);
+        state.process(this, node);
+    }
+
+    @Override
+    public void deleteNode(OpenstackNode node) {
+        checkNotNull(node, "Node cannot be null");
+
+        if (getOvsdbConnectionState(node)) {
+            disconnect(node);
+        }
+
+        nodeStore.remove(node);
+    }
+
+    @Override
+    public List<OpenstackNode> getNodes(OpenstackNodeType openstackNodeType) {
+        List<OpenstackNode> nodes = new ArrayList<>();
+        nodes.addAll(nodeStore.keySet().stream().filter(node -> node.openstackNodeType()
+                .equals(openstackNodeType)).collect(Collectors.toList()));
+        return nodes;
+    }
+
+    private List<OpenstackNode> getNodesAll() {
+        List<OpenstackNode> nodes = new ArrayList<>();
+        nodes.addAll(nodeStore.keySet());
+        return nodes;
+    }
+
+    @Override
+    public boolean isComplete(OpenstackNode node) {
+        checkNotNull(node, "Node cannot be null");
+
+        if (!nodeStore.containsKey(node)) {
+            log.warn("Node {} does not exist", node.hostName());
+            return false;
+        } else if (nodeStore.get(node).equals(NodeState.COMPLETE)) {
+            return true;
+        }
+        return false;
+    }
+
+    /**
+     * Checks current state of a given openstack node and returns it.
+     *
+     * @param node openstack node
+     * @return node state
+     */
+    private NodeState checkNodeState(OpenstackNode node) {
+        checkNotNull(node, "Node cannot be null");
+
+        if (checkIntegrationBridge(node) && checkTunnelInterface(node)) {
+            return NodeState.COMPLETE;
+        } else if (checkIntegrationBridge(node)) {
+            return NodeState.BRIDGE_CREATED;
+        } else if (getOvsdbConnectionState(node)) {
+            return NodeState.OVSDB_CONNECTED;
+        } else {
+            return NodeState.INIT;
+        }
+    }
+
+
+    /**
+     * Checks if integration bridge exists and available.
+     *
+     * @param node openstack node
+     * @return true if the bridge is available, false otherwise
+     */
+    private boolean checkIntegrationBridge(OpenstackNode node) {
+        return (deviceService.getDevice(node.intBrId()) != null
+                && deviceService.isAvailable(node.intBrId()));
+    }
+    /**
+     * Checks if tunnel interface exists.
+     *
+     * @param node openstack node
+     * @return true if the interface exists, false otherwise
+     */
+    private boolean checkTunnelInterface(OpenstackNode node) {
+        checkNotNull(node, "Node cannot be null");
+        return deviceService.getPorts(node.intBrId())
+                    .stream()
+                    .filter(p -> p.annotations().value(PORT_NAME).contains(DEFAULT_TUNNEL) && p.isEnabled())
+                    .findAny().isPresent();
+    }
+
+    /**
+     * Returns connection state of OVSDB server for a given node.
+     *
+     * @param node openstack node
+     * @return true if it is connected, false otherwise
+     */
+    private boolean getOvsdbConnectionState(OpenstackNode node) {
+        checkNotNull(node, "Node cannot be null");
+
+        OvsdbClientService ovsdbClient = getOvsdbClient(node);
+        return deviceService.isAvailable(node.ovsdbId()) &&
+                ovsdbClient != null && ovsdbClient.isConnected();
+    }
+
+    /**
+     * Returns OVSDB client for a given node.
+     *
+     * @param node openstack node
+     * @return OVSDB client, or null if it fails to get OVSDB client
+     */
+    private OvsdbClientService getOvsdbClient(OpenstackNode node) {
+        checkNotNull(node, "Node cannot be null");
+
+        OvsdbClientService ovsdbClient = controller.getOvsdbClient(
+                new OvsdbNodeId(node.ovsdbIp(), node.ovsdbPort().toInt()));
+        if (ovsdbClient == null) {
+            log.debug("Couldn't find OVSDB client for {}", node.hostName());
+        }
+        return ovsdbClient;
+    }
+
+    /**
+     * Connects to OVSDB server for a given node.
+     *
+     * @param node openstack node
+     */
+    private void connect(OpenstackNode node) {
+        checkNotNull(node, "Node cannot be null");
+
+        if (!nodeStore.containsKey(node)) {
+            log.warn("Node {} does not exist", node.hostName());
+            return;
+        }
+
+        if (!getOvsdbConnectionState(node)) {
+            controller.connect(node.ovsdbIp(), node.ovsdbPort());
+        }
+    }
+
+    /**
+     * Creates an integration bridge for a given node.
+     *
+     * @param node openstack node
+     */
+    private void createIntegrationBridge(OpenstackNode node) {
+        if (checkIntegrationBridge(node)) {
+            return;
+        }
+
+        List<ControllerInfo> controllers = new ArrayList<>();
+        Sets.newHashSet(clusterService.getNodes()).stream()
+                .forEach(controller -> {
+                    ControllerInfo ctrlInfo = new ControllerInfo(controller.ip(), OFPORT, "tcp");
+                    controllers.add(ctrlInfo);
+                });
+        String dpid = node.intBrId().toString().substring(DPID_BEGIN);
+
+        try {
+            DriverHandler handler = driverService.createHandler(node.ovsdbId());
+            BridgeConfig bridgeConfig =  handler.behaviour(BridgeConfig.class);
+            bridgeConfig.addBridge(BridgeName.bridgeName(DEFAULT_BRIDGE), dpid, controllers);
+        } catch (ItemNotFoundException e) {
+            log.warn("Failed to create integration bridge on {}", node.ovsdbId());
+        }
+    }
+
+    /**
+     * Creates tunnel interface to the integration bridge for a given node.
+     *
+     * @param node openstack node
+     */
+    private void createTunnelInterface(OpenstackNode node) {
+        if (checkTunnelInterface(node)) {
+            return;
+        }
+
+        DefaultAnnotations.Builder optionBuilder = DefaultAnnotations.builder();
+        for (String key : DEFAULT_TUNNEL_OPTIONS.keySet()) {
+            optionBuilder.set(key, DEFAULT_TUNNEL_OPTIONS.get(key));
+        }
+        TunnelDescription description =
+                new DefaultTunnelDescription(null, null, VXLAN, TunnelName.tunnelName(DEFAULT_TUNNEL),
+                        optionBuilder.build());
+        try {
+            DriverHandler handler = driverService.createHandler(node.ovsdbId());
+            TunnelConfig tunnelConfig =  handler.behaviour(TunnelConfig.class);
+            tunnelConfig.createTunnelInterface(BridgeName.bridgeName(DEFAULT_BRIDGE), description);
+        } catch (ItemNotFoundException e) {
+            log.warn("Failed to create tunnel interface on {}", node.ovsdbId());
+        }
+    }
+
+    /**
+     * Performs tasks after node initialization.
+     * First disconnect unnecessary OVSDB connection and then installs flow rules
+     * for existing VMs if there are any.
+     *
+     * @param node openstack node
+     */
+    private void postInit(OpenstackNode node) {
+        disconnect(node);
+        log.info("Finished initializing {}", node.hostName());
+    }
+
+    /**
+     * Sets a new state for a given openstack node.
+     *
+     * @param node openstack node
+     * @param newState new node state
+     */
+    private void setNodeState(OpenstackNode node, NodeState newState) {
+        checkNotNull(node, "Node cannot be null");
+
+        log.debug("Changed {} state: {}", node.hostName(), newState.toString());
+
+        nodeStore.put(node, newState);
+        newState.process(this, node);
+    }
+
+    /**
+     * Returns openstack node associated with a given OVSDB device.
+     *
+     * @param ovsdbId OVSDB device id
+     * @return openstack node, null if it fails to find the node
+     */
+    private OpenstackNode getNodeByOvsdbId(DeviceId ovsdbId) {
+
+        return getNodesAll().stream()
+                .filter(node -> node.ovsdbId().equals(ovsdbId))
+                .findFirst().orElse(null);
+    }
+
+    /**
+     * Returns openstack node associated with a given integration bridge.
+     *
+     * @param bridgeId device id of integration bridge
+     * @return openstack node, null if it fails to find the node
+     */
+    private OpenstackNode getNodeByBridgeId(DeviceId bridgeId) {
+        return getNodesAll().stream()
+                .filter(node -> node.intBrId().equals(bridgeId))
+                .findFirst().orElse(null);
+    }
+    /**
+     * Disconnects OVSDB server for a given node.
+     *
+     * @param node openstack node
+     */
+    private void disconnect(OpenstackNode node) {
+        checkNotNull(node, "Node cannot be null");
+
+        if (!nodeStore.containsKey(node)) {
+            log.warn("Node {} does not exist", node.hostName());
+            return;
+        }
+
+        if (getOvsdbConnectionState(node)) {
+            OvsdbClientService ovsdbClient = getOvsdbClient(node);
+            ovsdbClient.disconnect();
+        }
+    }
+
+    private class InternalDeviceListener implements DeviceListener {
+
+        @Override
+        public void event(DeviceEvent event) {
+
+            Device device = event.subject();
+            ConnectionHandler<Device> handler =
+                    (device.type().equals(SWITCH) ? bridgeHandler : ovsdbHandler);
+
+            switch (event.type()) {
+                case PORT_ADDED:
+                    eventExecutor.submit(() -> bridgeHandler.portAdded(event.port()));
+                    break;
+                case PORT_UPDATED:
+                    if (!event.port().isEnabled()) {
+                        eventExecutor.submit(() -> bridgeHandler.portRemoved(event.port()));
+                    }
+                    break;
+                case DEVICE_ADDED:
+                case DEVICE_AVAILABILITY_CHANGED:
+                    if (deviceService.isAvailable(device.id())) {
+                        eventExecutor.submit(() -> handler.connected(device));
+                    } else {
+                        eventExecutor.submit(() -> handler.disconnected(device));
+                    }
+                    break;
+                default:
+                    log.debug("Unsupported event type {}", event.type().toString());
+                    break;
+            }
+        }
+    }
+
+    private class OvsdbHandler implements ConnectionHandler<Device> {
+
+        @Override
+        public void connected(Device device) {
+            OpenstackNode node = getNodeByOvsdbId(device.id());
+            if (node != null) {
+                setNodeState(node, checkNodeState(node));
+            }
+        }
+
+        @Override
+        public void disconnected(Device device) {
+            if (!deviceService.isAvailable(device.id())) {
+                adminService.removeDevice(device.id());
+            }
+        }
+    }
+
+    private class BridgeHandler implements ConnectionHandler<Device> {
+
+        @Override
+        public void connected(Device device) {
+            OpenstackNode node = getNodeByBridgeId(device.id());
+            if (node != null) {
+                setNodeState(node, checkNodeState(node));
+            }
+        }
+
+        @Override
+        public void disconnected(Device device) {
+            OpenstackNode node = getNodeByBridgeId(device.id());
+            if (node != null) {
+                log.debug("Integration Bridge is disconnected from {}", node.hostName());
+                setNodeState(node, NodeState.INCOMPLETE);
+            }
+        }
+
+        /**
+         * Handles port added situation.
+         * If the added port is tunnel port, proceed remaining node initialization.
+         * Otherwise, do nothing.
+         *
+         * @param port port
+         */
+        public void portAdded(Port port) {
+            if (!port.annotations().value(PORT_NAME).contains(DEFAULT_TUNNEL)) {
+                return;
+            }
+
+            OpenstackNode node = getNodeByBridgeId((DeviceId) port.element().id());
+            if (node != null) {
+                setNodeState(node, checkNodeState(node));
+            }
+        }
+
+        /**
+         * Handles port removed situation.
+         * If the removed port is tunnel port, proceed remaining node initialization.
+         * Others, do nothing.
+         *
+         * @param port port
+         */
+        public void portRemoved(Port port) {
+            if (!port.annotations().value(PORT_NAME).contains(DEFAULT_TUNNEL)) {
+                return;
+            }
+
+            OpenstackNode node = getNodeByBridgeId((DeviceId) port.element().id());
+            if (node != null) {
+                log.info("Tunnel interface is removed from {}", node.hostName());
+                setNodeState(node, NodeState.INCOMPLETE);
+            }
+        }
+    }
+
+
+    private void readConfiguration() {
+        OpenstackNodeConfig config =
+                configService.getConfig(appId, OpenstackNodeConfig.class);
+
+        if (config == null) {
+            log.error("No configuration found");
+            return;
+        }
+
+        config.openstackNodes().stream().forEach(node -> addNode(node));
+        log.info("Node configured");
+    }
+
+    private class InternalConfigListener implements NetworkConfigListener {
+
+        @Override
+        public void event(NetworkConfigEvent event) {
+            if (!event.configClass().equals(OpenstackNodeConfig.class)) {
+                return;
+            }
+
+            switch (event.type()) {
+                case CONFIG_ADDED:
+                case CONFIG_UPDATED:
+                    eventExecutor.execute(OpenstackNodeManager.this::readConfiguration);
+                    break;
+                default:
+                    break;
+            }
+        }
+    }
+
+
+}
+
diff --git a/apps/openstacknode/src/main/java/org/onosproject/openstacknode/OpenstackNodeService.java b/apps/openstacknode/src/main/java/org/onosproject/openstacknode/OpenstackNodeService.java
new file mode 100644
index 0000000..76b7e67
--- /dev/null
+++ b/apps/openstacknode/src/main/java/org/onosproject/openstacknode/OpenstackNodeService.java
@@ -0,0 +1,61 @@
+/*
+ * Copyright 2016 Open Networking Laboratory
+ *
+ * Licensed 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.
+ */
+package org.onosproject.openstacknode;
+
+import java.util.List;
+
+/**
+ * Handles the bootstrap request for compute/gateway node.
+ */
+public interface OpenstackNodeService {
+
+    public enum OpenstackNodeType {
+        /**
+         * Compute or Gateway Node.
+         */
+        COMPUTENODE,
+        GATEWAYNODE
+    }
+    /**
+     * Adds a new node to the service.
+     *
+     * @param node openstack node
+     */
+    void addNode(OpenstackNode node);
+
+    /**
+     * Deletes a node from the service.
+     *
+     * @param node openstack node
+     */
+    void deleteNode(OpenstackNode node);
+
+    /**
+     * Returns nodes known to the service for designated openstacktype.
+     *
+     * @param openstackNodeType openstack node type
+     * @return list of nodes
+     */
+    List<OpenstackNode> getNodes(OpenstackNodeType openstackNodeType);
+
+    /**
+     * Returns the NodeState for a given node.
+     *
+     * @param node openstack node
+     * @return true if the NodeState for a given node is COMPLETE, false otherwise
+     */
+    boolean isComplete(OpenstackNode node);
+}
diff --git a/apps/openstacknode/src/main/java/org/onosproject/openstacknode/package-info.java b/apps/openstacknode/src/main/java/org/onosproject/openstacknode/package-info.java
new file mode 100644
index 0000000..d4af18a
--- /dev/null
+++ b/apps/openstacknode/src/main/java/org/onosproject/openstacknode/package-info.java
@@ -0,0 +1,20 @@
+/*
+ * Copyright 2016 Open Networking Laboratory
+ *
+ * Licensed 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.
+ */
+
+/**
+ * Application for bootstrapping Compute/Gateway Node in OpenStack.
+ */
+package org.onosproject.openstacknode;
\ No newline at end of file
diff --git a/apps/pom.xml b/apps/pom.xml
index 032b327..3e3aebe 100644
--- a/apps/pom.xml
+++ b/apps/pom.xml
@@ -68,6 +68,7 @@
         <module>openstackrouting</module>
         <module>cordmcast</module>
         <module>vpls</module>
+        <module>openstacknode</module>
   </modules>
 
     <properties>