diff --git a/wally/config.py b/wally/config.py
new file mode 100644
index 0000000..03b7ac9
--- /dev/null
+++ b/wally/config.py
@@ -0,0 +1,129 @@
+import os
+import uuid
+import logging
+import functools
+
+import yaml
+
+try:
+    from petname import Generate as pet_generate
+except ImportError:
+    def pet_generate(x, y):
+        return str(uuid.uuid4())
+
+
+cfg_dict = {}
+
+
+def mkdirs_if_unxists(path):
+    if not os.path.exists(path):
+        os.makedirs(path)
+
+
+def load_config(file_name, explicit_folder=None):
+    first_load = len(cfg_dict) == 0
+    cfg_dict.update(yaml.load(open(file_name).read()))
+
+    if first_load:
+        var_dir = cfg_dict.get('internal', {}).get('var_dir_root', '/tmp')
+
+    run_uuid = None
+    if explicit_folder is None:
+        for i in range(10):
+            run_uuid = pet_generate(2, "_")
+            results_dir = os.path.join(var_dir, run_uuid)
+            if not os.path.exists(results_dir):
+                break
+        else:
+            run_uuid = str(uuid.uuid4())
+            results_dir = os.path.join(var_dir, run_uuid)
+    else:
+        results_dir = explicit_folder
+
+    cfg_dict['var_dir'] = results_dir
+    cfg_dict['run_uuid'] = run_uuid.replace('_', '-')
+    mkdirs_if_unxists(cfg_dict['var_dir'])
+
+    in_var_dir = functools.partial(os.path.join, cfg_dict['var_dir'])
+
+    cfg_dict['charts_img_path'] = in_var_dir('charts')
+    mkdirs_if_unxists(cfg_dict['charts_img_path'])
+
+    cfg_dict['vm_ids_fname'] = in_var_dir('os_vm_ids')
+    cfg_dict['html_report_file'] = in_var_dir('report.html')
+    cfg_dict['text_report_file'] = in_var_dir('report.txt')
+    cfg_dict['log_file'] = in_var_dir('log.txt')
+    cfg_dict['sensor_storage'] = in_var_dir('sensor_storage.txt')
+
+    cfg_dict['test_log_directory'] = in_var_dir('test_logs')
+    mkdirs_if_unxists(cfg_dict['test_log_directory'])
+
+
+def color_me(color):
+    RESET_SEQ = "\033[0m"
+    COLOR_SEQ = "\033[1;%dm"
+
+    color_seq = COLOR_SEQ % (30 + color)
+
+    def closure(msg):
+        return color_seq + msg + RESET_SEQ
+    return closure
+
+
+class ColoredFormatter(logging.Formatter):
+    BLACK, RED, GREEN, YELLOW, BLUE, MAGENTA, CYAN, WHITE = range(8)
+
+    colors = {
+        'WARNING': color_me(YELLOW),
+        'DEBUG': color_me(BLUE),
+        'CRITICAL': color_me(YELLOW),
+        'ERROR': color_me(RED)
+    }
+
+    def __init__(self, msg, use_color=True, datefmt=None):
+        logging.Formatter.__init__(self, msg, datefmt=datefmt)
+        self.use_color = use_color
+
+    def format(self, record):
+        orig = record.__dict__
+        record.__dict__ = record.__dict__.copy()
+        levelname = record.levelname
+
+        prn_name = levelname + ' ' * (8 - len(levelname))
+        if levelname in self.colors:
+            record.levelname = self.colors[levelname](prn_name)
+        else:
+            record.levelname = prn_name
+
+        res = super(ColoredFormatter, self).format(record)
+
+        # restore record, as it will be used by other formatters
+        record.__dict__ = orig
+        return res
+
+
+def setup_loggers(def_level=logging.DEBUG, log_fname=None):
+    logger = logging.getLogger('wally')
+    logger.setLevel(logging.DEBUG)
+    sh = logging.StreamHandler()
+    sh.setLevel(def_level)
+
+    log_format = '%(asctime)s - %(levelname)s - %(name)s - %(message)s'
+    colored_formatter = ColoredFormatter(log_format, datefmt="%H:%M:%S")
+
+    sh.setFormatter(colored_formatter)
+    logger.addHandler(sh)
+
+    logger_api = logging.getLogger("wally.fuel_api")
+
+    if log_fname is not None:
+        fh = logging.FileHandler(log_fname)
+        log_format = '%(asctime)s - %(levelname)8s - %(name)s - %(message)s'
+        formatter = logging.Formatter(log_format, datefmt="%H:%M:%S")
+        fh.setFormatter(formatter)
+        fh.setLevel(logging.DEBUG)
+        logger.addHandler(fh)
+        logger_api.addHandler(fh)
+
+    logger_api.addHandler(sh)
+    logger_api.setLevel(logging.WARNING)