diff --git a/heat/engine/autoscaling.py b/heat/engine/autoscaling.py
new file mode 100644
index 0000000000..212487904d
--- /dev/null
+++ b/heat/engine/autoscaling.py
@@ -0,0 +1,148 @@
+# vim: tabstop=4 shiftwidth=4 softtabstop=4
+
+#
+#    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.
+
+import eventlet
+import logging
+import json
+import os
+
+from heat.common import exception
+from heat.db import api as db_api
+from heat.engine import instance
+from heat.engine.resources import Resource
+
+logger = logging.getLogger('heat.engine.autoscaling')
+
+
+class AutoScalingGroup(Resource):
+    tags_schema = {'Key': {'Type': 'String',
+                           'Required': True},
+                   'Value': {'Type': 'String',
+                             'Required': True}}
+    properties_schema = {
+        'AvailabilityZones': {'Required': True,
+                              'Type': 'List'},
+        'LaunchConfigurationName': {'Required': True,
+                                    'Type': 'String'},
+        'MaxSize': {'Required': True,
+                    'Type': 'String'},
+        'MinSize': {'Required': True,
+                    'Type': 'String'},
+        'Cooldown': {'Type': 'String'},
+        'DesiredCapacity': {'Type': 'String',
+                            'Implemented': False},
+        'HealthCheckGracePeriod': {'Type': 'Integer',
+                                   'Implemented': False},
+        'HealthCheckType': {'Type': 'String',
+                            'AllowedValues': ['EC2', 'ELB'],
+                            'Implemented': False},
+        'LoadBalancerNames': {'Type': 'List'},
+        'Tags': {'Type': 'List',
+                 'Schema': tags_schema}
+    }
+
+    def __init__(self, name, json_snippet, stack):
+        super(AutoScalingGroup, self).__init__(name, json_snippet, stack)
+        # instance_id is a list of resources
+
+    def handle_create(self):
+        self.adjust(int(self.properties['MinSize']),
+                    adjustment_type='ExactCapacity')
+
+    def handle_delete(self):
+        if self.instance_id is not None:
+            conf = self.properties['LaunchConfigurationName']
+            inst_list = self.instance_id.split(',')
+            logger.debug('handle_delete %s' % str(inst_list))
+            for victim in inst_list:
+                logger.debug('handle_delete %s' % victim)
+                inst = instance.Instance(victim,
+                                         self.stack.t['Resources'][conf],
+                                         self.stack)
+                inst.destroy()
+
+    def adjust(self, adjustment, adjustment_type='ChangeInCapacity'):
+        self.calculate_properties()
+
+        inst_list = []
+        if self.instance_id is not None:
+            inst_list = sorted(self.instance_id.split(','))
+
+        capacity = len(inst_list)
+        if adjustment_type == 'ChangeInCapacity':
+            new_capacity = capacity + adjustment
+        elif adjustment_type == 'ExactCapacity':
+            new_capacity = adjustment
+        else:
+            # PercentChangeInCapacity
+            new_capacity = capacity + (capacity * adjustment / 100)
+
+        if new_capacity > int(self.properties['MaxSize']):
+            logger.warn('can not exceed %s' % self.properties['MaxSize'])
+            return
+        if new_capacity < int(self.properties['MinSize']):
+            logger.warn('can not be less than %s' % self.properties['MinSize'])
+            return
+
+        if new_capacity == capacity:
+            return
+
+        conf = self.properties['LaunchConfigurationName']
+        if new_capacity > capacity:
+            # grow
+            for x in range(capacity, new_capacity):
+                inst = instance.Instance('%s-%d' % (self.name, x),
+                                         self.stack.t['Resources'][conf],
+                                         self.stack)
+                inst_list.append('%s-%d' % (self.name, x))
+                self.instance_id_set(','.join(inst_list))
+                inst.create()
+        else:
+            # shrink (kill largest numbered first)
+            del_list = inst_list[:]
+            for victim in reversed(del_list):
+                inst = instance.Instance(victim,
+                                         self.stack.t['Resources'][conf],
+                                         self.stack)
+                inst.destroy()
+                inst_list.remove(victim)
+                self.instance_id_set(','.join(inst_list))
+
+
+class LaunchConfiguration(Resource):
+    tags_schema = {'Key': {'Type': 'String',
+                           'Required': True},
+                   'Value': {'Type': 'String',
+                             'Required': True}}
+    properties_schema = {
+        'ImageId': {'Type': 'String',
+                    'Required': True},
+        'InstanceType': {'Type': 'String',
+                         'Required': True},
+        'KeyName': {'Type': 'String'},
+        'UserData': {'Type': 'String'},
+        'SecurityGroups': {'Type': 'String'},
+        'KernelId': {'Type': 'String',
+                     'Implemented': False},
+        'RamDiskId': {'Type': 'String',
+                      'Implemented': False},
+        'BlockDeviceMappings': {'Type': 'String',
+                                'Implemented': False},
+        'NovaSchedulerHints': {'Type': 'List',
+                               'Schema': tags_schema},
+    }
+
+    def __init__(self, name, json_snippet, stack):
+        super(LaunchConfiguration, self).__init__(name, json_snippet, stack)
diff --git a/heat/engine/resource_types.py b/heat/engine/resource_types.py
index dbd8fd2b37..7c2371102b 100644
--- a/heat/engine/resource_types.py
+++ b/heat/engine/resource_types.py
@@ -20,6 +20,7 @@ Register of resource types and their mapping to Resource classes.
 
 from heat.engine import resources
 
+from heat.engine import autoscaling
 from heat.engine import cloud_watch
 from heat.engine import eip
 from heat.engine import instance
@@ -47,6 +48,8 @@ _resource_classes = {
     'AWS::IAM::User': user.User,
     'AWS::IAM::AccessKey': user.AccessKey,
     'HEAT::HA::Restarter': instance.Restarter,
+    'AWS::AutoScaling::LaunchConfiguration': autoscaling.LaunchConfiguration,
+    'AWS::AutoScaling::AutoScalingGroup': autoscaling.AutoScalingGroup,
 }
 
 
diff --git a/heat/engine/resources.py b/heat/engine/resources.py
index 39f4ebfc79..381ac1381d 100644
--- a/heat/engine/resources.py
+++ b/heat/engine/resources.py
@@ -214,6 +214,12 @@ class Resource(object):
 
     def instance_id_set(self, inst):
         self.instance_id = inst
+        if self.id is not None:
+            try:
+                rs = db_api.resource_get(self.stack.context, self.id)
+                rs.update_and_save({'nova_instance': self.instance_id})
+            except Exception as ex:
+                logger.warn('db error %s' % str(ex))
 
     def _create_db(self, metadata=None):
         '''Create the resource in the database'''
diff --git a/templates/HAProxy_Single_Instance.template b/templates/HAProxy_Single_Instance.template
index 47f6d8efbc..25f6400379 100644
--- a/templates/HAProxy_Single_Instance.template
+++ b/templates/HAProxy_Single_Instance.template
@@ -75,8 +75,6 @@
         "ImageId": "F16-x86_64-cfntools",
         "InstanceType": { "Ref": "InstanceType" },
         "KeyName": { "Ref": "KeyName" },
-        "Tags": [ {"Key": "Part", "Value": "long"},
-                  {"Key": "ready", "Value": "short"} ],
         "UserData": { "Fn::Base64": { "Fn::Join": ["", [
           "#!/bin/bash -v\n",
           "/opt/aws/bin/cfn-init -s ",
diff --git a/templates/ppetit.template b/templates/ppetit.template
new file mode 100644
index 0000000000..95f4c3b9be
--- /dev/null
+++ b/templates/ppetit.template
@@ -0,0 +1,57 @@
+{
+  "AWSTemplateFormatVersion" : "2010-09-09",
+
+  "Description" : "Template to create multiple instances.",
+
+  "Parameters" : {
+    "KeyName" : {
+      "Description" : "Name of an existing EC2 KeyPair to enable SSH access to the instances",
+      "Type" : "String"
+    },
+    "InstanceType" : {
+      "Description" : "Instance type",
+      "Type" : "String",
+      "Default" : "m1.small",
+      "AllowedValues" : [ "t1.micro", "m1.small", "m1.large", "m1.xlarge", "m2.xlarge", "m2.2xlarge", "m2.4xlarge", "c1.medium", "c1.xlarge", "cc1.4xlarge" ],
+      "ConstraintDescription" : "must be a valid EC2 instance type."
+    },
+    "ImageId" : {
+      "Description" : "Name of the image to use",
+      "Type" : "String",
+      "Default" : "F16-x86_64-cfntools"
+    },
+    "NumInstances": {
+      "Default": "1",
+      "MinValue": "1",
+      "MaxValue": "100",
+      "Description" : "Number of instances to create",
+      "Type": "Integer"
+    }
+  },
+
+  "Resources" : {
+    "JobServerGroup" : {
+      "Type" : "AWS::AutoScaling::AutoScalingGroup",
+      "Properties" : {
+        "LaunchConfigurationName" : { "Ref" : "JobServerConfig" },
+        "MinSize" : {"Ref": "NumInstances"},
+        "MaxSize" : {"Ref": "NumInstances"},
+        "AvailabilityZones" : { "Fn::GetAZs" : "" }
+      }
+    },
+
+    "JobServerConfig" : {
+      "Type" : "AWS::AutoScaling::LaunchConfiguration",
+      "Properties": {
+        "ImageId"           : { "Ref" : "ImageId" },
+        "InstanceType"      : { "Ref" : "InstanceType" },
+        "KeyName"           : { "Ref" : "KeyName" },
+        "NovaSchedulerHints": [ {"Key": "part", "Value": "long"},
+                                {"Key": "ready", "Value": "short"} ],
+        "UserData"          : { "Fn::Base64" : { "Fn::Join" : ["", [
+          "#!/bin/bash -v\n"
+        ]]}}
+      }
+    }
+  }
+}