diff --git a/README.rst b/README.rst
index c3df5f7..60ef3b4 100644
--- a/README.rst
+++ b/README.rst
@@ -71,7 +71,7 @@
             virtlet:
               enabled: true
               namespace: kube-system
-              image: mirantis/virtlet:v0.7.0
+              image: mirantis/virtlet:v0.8.0
               hosts:
               - cmp01
               - cmp02
diff --git a/kubernetes/_common.sls b/kubernetes/_common.sls
index 1610d64..b489517 100644
--- a/kubernetes/_common.sls
+++ b/kubernetes/_common.sls
@@ -83,19 +83,32 @@
     - onlyif: /bin/false
     {%- endif %}
 
+/usr/bin/dockershim:
+  file.symlink:
+    - target: /usr/bin/criproxy
+    - require:
+      - file: /usr/bin/criproxy
+
 /etc/criproxy:
   file.directory:
     - user: root
     - group: root
     - mode: 0750
 
-/etc/criproxy/kubelet.conf:
+/etc/criproxy/node.conf:
   file.managed:
-    - source: salt://kubernetes/files/virtlet/kubelet.conf
+    - user: root
+    - group: root
+    - mode: 0640
+    - contents: ''
+
+/etc/systemd/system/dockershim.service:
+  file.managed:
+    - source: salt://kubernetes/files/systemd/dockershim.service
     - template: jinja
     - user: root
     - group: root
-    - mode: 640
+    - mode: 755
 
 /etc/systemd/system/criproxy.service:
   file.managed:
@@ -105,14 +118,24 @@
     - group: root
     - mode: 755
 
+dockershim_service:
+  service.running:
+  - name: dockershim
+  - enable: True
+  - watch:
+    - file: /etc/systemd/system/dockershim.service
+    - file: /usr/bin/dockershim
+  {%- if grains.get('noservices') %}
+  - onlyif: /bin/false
+  {%- endif %}
+
 criproxy_service:
   service.running:
   - name: criproxy
   - enable: True
   - watch:
     - file: /etc/systemd/system/criproxy.service
-    - file: /etc/criproxy/kubelet.conf
-    - file: /etc/criproxy
+    - file: /etc/criproxy/node.conf
     - file: /usr/bin/criproxy
   {%- if grains.get('noservices') %}
   - onlyif: /bin/false
@@ -123,6 +146,11 @@
 /etc/criproxy:
   file.absent
 
+dockershim_service:
+  service.dead:
+  - name: dockershim
+  - enable: False
+
 criproxy_service:
   service.dead:
   - name: criproxy
diff --git a/kubernetes/files/systemd/criproxy.service b/kubernetes/files/systemd/criproxy.service
index 6d91cb2..fb6dcf5 100644
--- a/kubernetes/files/systemd/criproxy.service
+++ b/kubernetes/files/systemd/criproxy.service
@@ -3,8 +3,7 @@
 
 [Service]
 ExecStart=/usr/bin/criproxy -alsologtostderr \
-          -connect docker,virtlet:/var/run/virtlet.sock \
-          -kubeletcfg /etc/criproxy/kubelet.conf \
+          -connect /var/run/dockershim.sock,virtlet:/var/run/virtlet.sock \
           -listen /var/run/criproxy.sock
 Restart=always
 StartLimitInterval=0
diff --git a/kubernetes/files/systemd/dockershim.service b/kubernetes/files/systemd/dockershim.service
new file mode 100644
index 0000000..ec02645
--- /dev/null
+++ b/kubernetes/files/systemd/dockershim.service
@@ -0,0 +1,24 @@
+[Unit]
+Description=dockershim for criproxy
+
+[Service]
+EnvironmentFile=-/etc/default/kubelet
+ExecStart=/usr/bin/dockershim \
+    $KUBE_LOGTOSTDERR \
+    $KUBE_LOG_LEVEL \
+    $KUBE_ALLOW_PRIV \
+        $KUBELET_ADDRESS \
+        $KUBELET_PORT \
+        $KUBELET_HOSTNAME \
+        $KUBELET_API_SERVER \
+        $DOCKER_ENDPOINT \
+        $CADVISOR_PORT \
+        $DAEMON_ARGS
+
+Restart=always
+StartLimitInterval=0
+RestartSec=10
+
+[Install]
+RequiredBy=criproxy.service
+
diff --git a/kubernetes/files/virtlet/kubelet.conf b/kubernetes/files/virtlet/kubelet.conf
deleted file mode 100644
index 2697cc3..0000000
--- a/kubernetes/files/virtlet/kubelet.conf
+++ /dev/null
@@ -1,150 +0,0 @@
-{%- from "kubernetes/map.jinja" import common with context %}
-{
-    "address": "0.0.0.0",
-    "allowPrivileged": true,
-    "authentication": {
-        "anonymous": {
-            "enabled": true
-        },
-        "webhook": {
-            "cacheTTL": "2m0s",
-            "enabled": false
-        },
-        "x509": {
-            "clientCAFile": ""
-        }
-    },
-    "authorization": {
-        "mode": "AlwaysAllow",
-        "webhook": {
-            "cacheAuthorizedTTL": "5m0s",
-            "cacheUnauthorizedTTL": "30s"
-        }
-    },
-    "babysitDaemons": false,
-    "cAdvisorPort": 4194,
-    "certDirectory": "/var/run/kubernetes",
-    "cgroupDriver": "cgroupfs",
-    "cgroupRoot": "",
-    "cgroupsPerQOS": true,
-{%- if common.get('cloudprovider', {}).get('enabled') %}
-    "cloudProvider": "{{ common.cloudprovider.provider }}"
-{%- if common.get('cloudprovider', {}).get('provider') == 'openstack' %}
-    "cloudConfigFile": "/etc/kubernetes/cloud-config.conf",
-{%- endif %}
-{%- else %}
-    "cloudProvider": "auto-detect",
-{%- endif %}
-
-    "clusterDNS": [
-        "10.254.0.10"
-    ],
-    "clusterDomain": "{{ common.cluster_domain|replace('_', '-') }}",
-    "cniBinDir": "/opt/cni/bin",
-    "cniConfDir": "",
-    "containerRuntime": "docker",
-    "containerized": false,
-    "contentType": "application/vnd.kubernetes.protobuf",
-    "cpuCFSQuota": true,
-    "dockerEndpoint": "unix:///var/run/docker.sock",
-    "dockerExecHandlerName": "native",
-    "enableCRI": true,
-    "enableContentionProfiling": false,
-    "enableControllerAttachDetach": true,
-    "enableCustomMetrics": false,
-    "enableDebuggingHandlers": true,
-    "enableServer": true,
-    "enforceNodeAllocatable": [
-        "pods"
-    ],
-    "eventBurst": 10,
-    "eventRecordQPS": 5,
-    "evictionHard": "memory.available<100Mi",
-    "evictionMaxPodGracePeriod": 0,
-    "evictionMinimumReclaim": "",
-    "evictionPressureTransitionPeriod": "5m0s",
-    "evictionSoft": "",
-    "evictionSoftGracePeriod": "",
-    "exitOnLockContention": false,
-    "experimentalKernelMemcgNotification": false,
-    "experimentalQOSReserved": {},
-    "featureGates": "DynamicKubeletConfig=true",
-    "fileCheckFrequency": "5s",
-    "hairpinMode": "promiscuous-bridge",
-    "healthzBindAddress": "127.0.0.1",
-    "healthzPort": 10248,
-    "hostIPCSources": [
-        "*"
-    ],
-    "hostNetworkSources": [
-        "*"
-    ],
-    "hostPIDSources": [
-        "*"
-    ],
-    "hostnameOverride": "",
-    "httpCheckFrequency": "20s",
-    "imageGCHighThresholdPercent": 90,
-    "imageGCLowThresholdPercent": 80,
-    "imageMinimumGCAge": "2m0s",
-    "imagePullProgressDeadline": "1m0s",
-    "iptablesDropBit": 15,
-    "iptablesMasqueradeBit": 14,
-    "kubeAPIBurst": 10,
-    "kubeAPIQPS": 5,
-    "kubeReserved": {},
-    "kubeletCgroups": "",
-    "lockFilePath": "",
-    "lowDiskSpaceThresholdMB": 256,
-    "makeIPTablesUtilChains": true,
-    "manifestURL": "",
-    "manifestURLHeader": "",
-    "masterServiceNamespace": "default",
-    "maxContainerCount": -1,
-    "maxOpenFiles": 1000000,
-    "maxPerPodContainerCount": 1,
-    "maxPods": 110,
-    "minimumGCAge": "0s",
-    "networkPluginDir": "/etc/cni/net.d",
-    "networkPluginMTU": 0,
-    "networkPluginName": "cni",
-    "nodeIP": "",
-    "nodeLabels": {
-        "node-role.kubernetes.io/node": "true"
-    },
-    "nodeStatusUpdateFrequency": "10s",
-    "nonMasqueradeCIDR": "10.0.0.0/8",
-    "oomScoreAdj": -999,
-    "outOfDiskTransitionFrequency": "5m0s",
-    "podCIDR": "",
-    "podInfraContainerImage": "gcr.io/google_containers/pause-amd64:3.0",
-    "podManifestPath": "/etc/kubernetes/manifests",
-    "podsPerCore": 0,
-    "port": 10250,
-    "protectKernelDefaults": false,
-    "readOnlyPort": 10255,
-    "registerNode": true,
-    "registerSchedulable": true,
-    "registerWithTaints": [],
-    "registryBurst": 10,
-    "registryPullQPS": 5,
-    "remoteImageEndpoint": "",
-    "remoteRuntimeEndpoint": "",
-    "resolvConf": "/etc/resolv.conf",
-    "rktAPIEndpoint": "localhost:15441",
-    "rktPath": "",
-    "rktStage1Image": "",
-    "rootDirectory": "/var/lib/kubelet",
-    "runtimeCgroups": "",
-    "runtimeRequestTimeout": "2m0s",
-    "seccompProfileRoot": "/var/lib/kubelet/seccomp",
-    "serializeImagePulls": true,
-    "streamingConnectionIdleTimeout": "4h0m0s",
-    "syncFrequency": "1m0s",
-    "systemCgroups": "",
-    "systemReserved": {},
-    "tlsCertFile": "",
-    "tlsPrivateKeyFile": "",
-    "volumePluginDir": "/usr/libexec/kubernetes/kubelet-plugins/volume/exec/",
-    "volumeStatsAggPeriod": "1m0s"
-}
diff --git a/kubernetes/master/federation.sls b/kubernetes/master/federation.sls
index 2becd61..49f7c5a 100644
--- a/kubernetes/master/federation.sls
+++ b/kubernetes/master/federation.sls
@@ -6,7 +6,7 @@
   archive.extracted:
     - name: /tmp/kubernetes-client
     - source: {{ master.federation.source }}
-    {%- if {{ master.federation.get('hash') }} %}
+    {%- if master.federation.get('hash') %}
     - source_hash: sha256={{ master.federation.hash }}
     {%- endif %}
     - tar_options: xzf
@@ -56,10 +56,11 @@
 
 kubefed_init:
   cmd.run:
-  - name: kubefed init {{ master.federation.name }} --host-cluster-context=local --kubeconfig=/etc/kubernetes/federation/federation.kubeconfig --federation-system-namespace={{ master.federation.namespace }} --api-server-service-type={{ master.federation.service_type }} --etcd-persistent-storage=false  --dns-provider={{ master.federation.dns_provider }} --dns-provider-config=/etc/kubernetes/federation/dns.conf --dns-zone-name={{ master.federation.name }} --image={{ common.hyperkube.image }}
+  - name: kubefed init {{ master.federation.name }} --host-cluster-context=local --kubeconfig=/etc/kubernetes/federation/federation.kubeconfig --federation-system-namespace={{ master.federation.namespace }} --api-server-service-type={{ master.federation.service_type }} --api-server-advertise-address={{ master.apiserver.vip_address }} --etcd-persistent-storage=false  --dns-provider={{ master.federation.dns_provider }} --dns-provider-config=/etc/kubernetes/federation/dns.conf --dns-zone-name={{ master.federation.name }} --image={{ common.hyperkube.image }}
   - require:
     - file: /usr/bin/kubefed
     - file: /etc/kubernetes/federation/federation.kubeconfig
+  - timeout: 120
   - unless: kubectl get namespace {{ master.federation.namespace }}
   {%- if grains.get('noservices') %}
   - onlyif: /bin/false
@@ -92,31 +93,32 @@
 # Assumes the following:
 # * Pillar data master.federation.childclusters is populated
 # * kubeconfig data for each cluster exists in /etc/kubernetes/federation/federation.kubeconfig
-{%- if master.federation.get('childclusters') }
+{%- if master.federation.get('childclusters') %}
 {%- for childcluster in master.federation.childclusters %}
 
-federation_verify_kubeconfig_{{ childcluster }}:
+federation_set_insecure_{{ childcluster }}:
   cmd.run:
-  - name: kubectl config get-contexts -o name | grep {{ childcluster }}
+  - name: kubectl config set-cluster {{ childcluster }} --insecure-skip-tls-verify=true
   - env:
     - KUBECONFIG: /etc/kubernetes/federation/childclusters.kubeconfig
   - require:
     - cmd: kubefed_init
   {%- if grains.get('noservices') %}
   - onlyif: /bin/false
+  {%- else %}
+  - unless: kubectl --context {{ childcluster }} config view --minify | egrep "insecure-skip-tls-verify. true"
   {%- endif %}
-
+   
 federation_join_cluster_{{ childcluster }}:
   cmd.run:
-  - name: kubefed join {{ childcluster }} --host-cluster-context=local --context={{ master.federation.name }}
+  - name: kubefed join {{ childcluster }} --host-cluster-context={{ common.cluster_name }} --context={{ master.federation.name }}
   - env:
-    - KUBECONFIG: /etc/kubernetes/federation.kubeconfig
+    - KUBECONFIG: /etc/kubernetes/federation/childclusters.kubeconfig:/etc/kubernetes/federation/federation.kubeconfig
   - require:
-    - cmd: verify_kubeconfig_{{ childcluster }}
-  - unless: kubectl get clusters | grep {{ childcluster }}
+    - cmd: federation_set_insecure_{{ childcluster }}
+  - unless: kubectl --context {{ master.federation.name }} get clusters | grep {{ childcluster }}
 
 {%- endfor %}
 {%- endif %}
 
 {%- endif %}
-
diff --git a/metadata/service/common.yml b/metadata/service/common.yml
index b7884b4..c29d5ee 100644
--- a/metadata/service/common.yml
+++ b/metadata/service/common.yml
@@ -55,7 +55,7 @@
         virtlet:
           enabled: False
           namespace: kube-system
-          image: mirantis/virtlet:v0.7.0
+          image: mirantis/virtlet:v0.8.0
       cloudprovider:
         enabled: False
         provider: openstack
diff --git a/metadata/service/master/cluster.yml b/metadata/service/master/cluster.yml
index cf02e33..50e5ce6 100644
--- a/metadata/service/master/cluster.yml
+++ b/metadata/service/master/cluster.yml
@@ -64,7 +64,7 @@
         enabled: False
         name: federation
         namespace: federation-system
-        source: https://dl.k8s.io/v1.6.6/kubernetes-client-linux-amd64.tar.gz
-        hash: 94b2c9cd29981a8e150c187193bab0d8c0b6e906260f837367feff99860a6376
+        source: https://dl.k8s.io/v1.7.3/kubernetes-client-linux-amd64.tar.gz
+        hash: 8d66c7912914ac9add514e660fdc8c963b748a7c588c43a14533157a9f0e1c92
         service_type: NodePort
         dns_provider: coredns
diff --git a/metadata/service/master/single.yml b/metadata/service/master/single.yml
index de461b3..80ad876 100644
--- a/metadata/service/master/single.yml
+++ b/metadata/service/master/single.yml
@@ -63,7 +63,7 @@
         virtlet:
           enabled: False
           namespace: kube-system
-          image: mirantis/virtlet:v0.7.0
+          image: mirantis/virtlet:v0.8.0
       token:
         admin: ${_param:kubernetes_admin_token}
         kubelet: ${_param:kubernetes_kubelet_token}
@@ -86,7 +86,7 @@
         enabled: False
         name: federation
         namespace: federation-system
-        source: https://dl.k8s.io/v1.6.6/kubernetes-client-linux-amd64.tar.gz
-        hash: 94b2c9cd29981a8e150c187193bab0d8c0b6e906260f837367feff99860a6376
+        source: https://dl.k8s.io/v1.7.3/kubernetes-client-linux-amd64.tar.gz
+        hash: 8d66c7912914ac9add514e660fdc8c963b748a7c588c43a14533157a9f0e1c92
         service_type: NodePort
         dns_provider: coredns
diff --git a/tests/pillar/master_cluster.sls b/tests/pillar/master_cluster.sls
index e5e937b..2f40293 100644
--- a/tests/pillar/master_cluster.sls
+++ b/tests/pillar/master_cluster.sls
@@ -42,7 +42,7 @@
         hosts:
         - cmp01
         - cmp02
-        image: mirantis/virtlet:v0.7.0
+        image: mirantis/virtlet:v0.8.0
   master:
     admin:
       password: password
diff --git a/tests/pillar/master_contrail.sls b/tests/pillar/master_contrail.sls
index 553a220..b562e66 100644
--- a/tests/pillar/master_contrail.sls
+++ b/tests/pillar/master_contrail.sls
@@ -39,7 +39,7 @@
       virtlet:
         enabled: true
         namespace: kube-system
-        image: mirantis/virtlet:v0.7.0
+        image: mirantis/virtlet:v0.8.0
         hosts:
         - cmp01
         - cmp02
diff --git a/tests/pillar/master_contrail4_0.sls b/tests/pillar/master_contrail4_0.sls
index 0434f5a..fe63c4a 100644
--- a/tests/pillar/master_contrail4_0.sls
+++ b/tests/pillar/master_contrail4_0.sls
@@ -39,7 +39,7 @@
       virtlet:
         enabled: true
         namespace: kube-system
-        image: mirantis/virtlet:v0.7.0
+        image: mirantis/virtlet:v0.8.0
         hosts:
         - cmp01
         - cmp02
diff --git a/tests/pillar/pool_cluster.sls b/tests/pillar/pool_cluster.sls
index 7e281b4..35523bb 100644
--- a/tests/pillar/pool_cluster.sls
+++ b/tests/pillar/pool_cluster.sls
@@ -18,7 +18,7 @@
       virtlet:
         enabled: true
         namespace: kube-system
-        image: mirantis/virtlet:v0.7.0
+        image: mirantis/virtlet:v0.8.0
         hosts:
         - cmp01
         - cmp02
diff --git a/tests/pillar/pool_cluster_with_domain.sls b/tests/pillar/pool_cluster_with_domain.sls
index 0a05b00..595e39e 100644
--- a/tests/pillar/pool_cluster_with_domain.sls
+++ b/tests/pillar/pool_cluster_with_domain.sls
@@ -18,7 +18,7 @@
       virtlet:
         enabled: true
         namespace: kube-system
-        image: mirantis/virtlet:v0.7.0
+        image: mirantis/virtlet:v0.8.0
         hosts:
         - cmp01
         - cmp02
diff --git a/tests/pillar/pool_contrail4_0.sls b/tests/pillar/pool_contrail4_0.sls
index 95c9a27..bdd87b7 100644
--- a/tests/pillar/pool_contrail4_0.sls
+++ b/tests/pillar/pool_contrail4_0.sls
@@ -18,7 +18,7 @@
       virtlet:
         enabled: true
         namespace: kube-system
-        image: mirantis/virtlet:v0.7.0
+        image: mirantis/virtlet:v0.8.0
         hosts:
         - cmp01
         - cmp02