diff --git a/hco/fragments/VMCompute.yaml b/hco/fragments/VMCompute.yaml
new file mode 100644
index 0000000..e8e25ab
--- /dev/null
+++ b/hco/fragments/VMCompute.yaml
@@ -0,0 +1,169 @@
+heat_template_version: queens
+
+parameters:
+
+  k8s_network:
+    type: string
+  k8s_subnet_id:
+    type: string
+  public_net_id:
+    type: string
+  pxe_network:
+    type: string
+  pxe_subnet:
+    type: string
+  availability_zone:
+    type: string
+    default: nova
+  boot_timeout:
+    type: number
+    description: Boot timeout for instance
+    default: 450
+  image:
+    type: string
+    description: Name of image to use for servers
+  flavor:
+    type: string
+    description: Flavor to use for servers
+  key_name:
+    type: string
+    description: Name of keypair to assign to servers
+
+resources:
+
+  pxe_network_port:
+    type: OS::Neutron::Port
+    properties:
+      network: { get_param: pxe_network }
+      port_security_enabled: false
+      fixed_ips:
+        - subnet: { get_param: pxe_subnet }
+
+  ip_addr_pxe:
+    type: OS::Heat::Value
+    properties:
+      type: string
+      value: { get_attr: [ pxe_network_port, fixed_ips, 0, ip_address ] }
+
+  ip_mask_pxe:
+    type: OS::Heat::Value
+    properties:
+      type: string
+      value: { str_split: [ '/', { get_attr: [ pxe_network_port, subnets, 0, cidr ] }, 1 ] }
+
+  k8s_network_port:
+    type: OS::Neutron::Port
+    properties:
+      network: { get_param: k8s_network }
+      port_security_enabled: false
+      fixed_ips:
+        - subnet: { get_param: k8s_subnet_id }
+
+  floating_ip_k8s_net:
+    type: OS::Neutron::FloatingIP
+    properties:
+      floating_network_id: { get_param: public_net_id }
+      port_id: { get_resource: k8s_network_port }
+
+  wait_handle:
+    type: OS::Heat::WaitConditionHandle
+
+  wait_condition:
+    type: OS::Heat::WaitCondition
+    properties:
+      handle: { get_resource: wait_handle }
+      timeout: { get_param: boot_timeout }
+
+  server_init:
+    type: OS::Heat::CloudConfig
+    properties:
+      cloud_config:
+        password: 'r00tme'
+        chpasswd:
+          expire: false
+        ssh_pwauth: true
+        packages:
+          - bridge-utils
+          - cpu-checker
+          - libvirt-clients
+          - libvirt-daemon
+          - libvirt-daemon-system
+          - qemu-kvm
+          - virt-manager
+          - virtinst
+          - python3-virtualbmc
+          - ipmitool
+        write_files:
+          - path: /etc/systemd/system/virtualbmc.service
+            content: |
+              [Unit]
+              Description=Virtual BMC Service
+              After=network.target libvirtd.service
+              [Service]
+              Type=simple
+              ExecStart=/usr/bin/vbmcd --foreground
+              ExecStop=/bin/kill -HUP $MAINPID
+              User=root
+              Group=root
+              [Install]
+              WantedBy=multi-user.target
+          - path: /etc/netplan/99-custom-bridge.yaml
+            content:
+              str_replace:
+                template: |
+                  network:
+                    version: 2
+                    bridges:
+                      br_pxe:
+                        interfaces: [ens4]
+                        addresses: [ip_addr/ip_mask]
+                params:
+                  ip_addr: { get_attr: [ ip_addr_pxe, value ] }
+                  ip_mask: { get_attr: [ ip_mask_pxe, value ] }
+        runcmd:
+          - str_replace:
+              template: |
+                #!/bin/bash
+                set +x
+                netplan apply
+                sudo ip addr flush dev ens4
+                systemctl enable --now virtualbmc.service
+                # Run instances with vBMC
+                virt-install --name child-control-1 --ram 8192 --vcpus 4 --disk size=20,bus=scsi --os-variant generic --network bridge=br_pxe,model=virtio --graphics vnc,listen=0.0.0.0 --boot network --pxe --noautoconsole
+                virt-install --name child-control-2 --ram 8192 --vcpus 4 --disk size=20,bus=scsi --os-variant generic --network bridge=br_pxe,model=virtio --graphics vnc,listen=0.0.0.0 --boot network --pxe --noautoconsole
+                virt-install --name child-control-3 --ram 8192 --vcpus 4 --disk size=20,bus=scsi --os-variant generic --network bridge=br_pxe,model=virtio --graphics vnc,listen=0.0.0.0 --boot network --pxe --noautoconsole
+                vbmc add child-control-1 --port 6231 --username engineer --password password && vbmc start child-control-1
+                vbmc add child-control-2 --port 6232 --username engineer --password password && vbmc start child-control-2
+                vbmc add child-control-3 --port 6233 --username engineer --password password && vbmc start child-control-3
+                # Collect VM data
+                mac1=$(virsh domiflist child-control-1 | grep 'br_pxe' | awk '{print $5}')
+                mac2=$(virsh domiflist child-control-2 | grep 'br_pxe' | awk '{print $5}')
+                mac3=$(virsh domiflist child-control-3 | grep 'br_pxe' | awk '{print $5}')
+                # Simple success signal
+                wc_notify --data-binary '{"status": "SUCCESS", "data": {"vnodes": [{"mac": "'${mac1}'", "port": "6231"}, {"mac": "'${mac2}'", "port": "6232"}, {"mac": "'${mac3}'", "port": "6233"}]}}'
+              params:
+                wc_notify: { get_attr: [ wait_handle, curl_cli ] }
+
+  server:
+    type: OS::Nova::Server
+    properties:
+      availability_zone: { get_param: availability_zone }
+      image: { get_param: image }
+      flavor: { get_param: flavor }
+      key_name: { get_param: key_name }
+      networks:
+        - port: { get_resource: k8s_network_port }
+        - port: { get_resource: pxe_network_port }
+      user_data_format: RAW
+      user_data: { get_resource: server_init }
+
+outputs:
+  server_public_ip:
+    description: Floating IP address of server in public network
+    value: { get_attr: [ floating_ip_k8s_net, floating_ip_address ] }
+  vbmc_ip:
+    description: IP address of interface in PXE network (virtual BMC)
+    value: { get_attr: [ ip_addr_pxe, value ] }
+  vnodes_data:
+    description: Virtual nodes data (mac addresses and vbmc ports)
+    value: { get_attr: [ wait_condition, data ] }
diff --git a/hco/fragments/VMInstanceCeph.yaml b/hco/fragments/VMInstanceCeph.yaml
index 642fba2..61cbd9e 100644
--- a/hco/fragments/VMInstanceCeph.yaml
+++ b/hco/fragments/VMInstanceCeph.yaml
@@ -50,9 +50,32 @@
       # Don't mount ephemeral0 to /mnt as it's by default
       mounts:
         - [ ephemeral0, null ]
+  hybrid_lab:
+    type: boolean
+    default: false
+  pxe_network:
+    type: string
+    default: ''
+  pxe_subnet:
+    type: string
+    default: ''
+
+conditions:
+
+  connect_pxe_network:
+    get_param: hybrid_lab
 
 resources:
 
+  pxe_network_port:
+    type: OS::Neutron::Port
+    condition: connect_pxe_network
+    properties:
+      network: { get_param: pxe_network }
+      port_security_enabled: false
+      fixed_ips:
+        - subnet: { get_param: pxe_subnet }
+
   k8s_network_port:
     type: OS::Neutron::Port
     properties:
@@ -157,10 +180,18 @@
       flavor: { get_param: flavor }
       key_name: { get_param: key_name }
       networks:
-        - port: { get_resource: k8s_network_port }
-        - network: { get_param : storage_frontend_network }
-        - network: { get_param : storage_backend_network }
-        - network: { get_param : data_network }
+        if:
+          - connect_pxe_network
+          - - port: { get_resource: k8s_network_port }
+            - network: { get_param: storage_frontend_network }
+            - network: { get_param: storage_backend_network }
+            - network: { get_param: data_network }
+            - port: { get_resource: pxe_network_port }
+          - - port: { get_resource: k8s_network_port }
+            - network: { get_param: storage_frontend_network }
+            - network: { get_param: storage_backend_network }
+            - network: { get_param: data_network }
+
       user_data_format: SOFTWARE_CONFIG
       user_data: { get_resource:  install_config_agent}