diff --git a/cloudpulse/common/paths.py b/cloudpulse/common/paths.py
new file mode 100644
index 0000000..2d908b2
--- /dev/null
+++ b/cloudpulse/common/paths.py
@@ -0,0 +1,66 @@
+# Copyright 2010 United States Government as represented by the
+# Administrator of the National Aeronautics and Space Administration.
+# All Rights Reserved.
+# Copyright 2012 Red Hat, Inc.
+#
+#    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 os
+
+from oslo_config import cfg
+
+PATH_OPTS = [
+    cfg.StrOpt('pybasedir',
+               default=os.path.abspath(os.path.join(os.path.dirname(__file__),
+                                                    '../')),
+               help='Directory where cloudpulse python module is installed.'),
+    cfg.StrOpt('bindir',
+               default='$pybasedir/bin',
+               help='Directory where cloudpulse binaries are installed.'),
+    cfg.StrOpt('state_path',
+               default='$pybasedir',
+               help="Top-level directory for maintaining cloudpulse's state."),
+]
+
+CONF = cfg.CONF
+CONF.register_opts(PATH_OPTS)
+
+
+def basedir_def(*args):
+    """Return an uninterpolated path relative to $pybasedir."""
+    return os.path.join('$pybasedir', *args)
+
+
+def bindir_def(*args):
+    """Return an uninterpolated path relative to $bindir."""
+    return os.path.join('$bindir', *args)
+
+
+def state_path_def(*args):
+    """Return an uninterpolated path relative to $state_path."""
+    return os.path.join('$state_path', *args)
+
+
+def basedir_rel(*args):
+    """Return a path relative to $pybasedir."""
+    return os.path.join(CONF.pybasedir, *args)
+
+
+def bindir_rel(*args):
+    """Return a path relative to $bindir."""
+    return os.path.join(CONF.bindir, *args)
+
+
+def state_path_rel(*args):
+    """Return a path relative to $state_path."""
+    return os.path.join(CONF.state_path, *args)
diff --git a/cloudpulse/db/sqlalchemy/__init__.py b/cloudpulse/db/sqlalchemy/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/cloudpulse/db/sqlalchemy/api.py b/cloudpulse/db/sqlalchemy/api.py
new file mode 100644
index 0000000..c2070cb
--- /dev/null
+++ b/cloudpulse/db/sqlalchemy/api.py
@@ -0,0 +1,223 @@
+# Copyright 2013 Hewlett-Packard Development Company, L.P.
+#
+# 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.
+
+"""SQLAlchemy storage backend."""
+
+from cloudpulse.common import exception
+from cloudpulse.common import utils
+from cloudpulse.db import api
+from cloudpulse.db.sqlalchemy import models
+from cloudpulse.openstack.common._i18n import _
+from cloudpulse.openstack.common import log
+from oslo_config import cfg
+from oslo_db import exception as db_exc
+from oslo_db.sqlalchemy import session as db_session
+from oslo_db.sqlalchemy import utils as db_utils
+from oslo_utils import timeutils
+import sqlalchemy.orm.exc
+
+CONF = cfg.CONF
+
+LOG = log.getLogger(__name__)
+
+
+_FACADE = None
+
+
+def _create_facade_lazily():
+    global _FACADE
+    if _FACADE is None:
+        _FACADE = db_session.EngineFacade.from_config(CONF)
+    return _FACADE
+
+
+def get_engine():
+    facade = _create_facade_lazily()
+    return facade.get_engine()
+
+
+def get_session(**kwargs):
+    facade = _create_facade_lazily()
+    return facade.get_session(**kwargs)
+
+
+def get_backend():
+    """The backend is this module itself."""
+    return Connection()
+
+
+def model_query(model, *args, **kwargs):
+    """Query helper for simpler session usage.
+
+    :param session: if present, the session to use
+    """
+
+    session = kwargs.get('session') or get_session()
+    query = session.query(model, *args)
+    return query
+
+
+def add_identity_filter(query, value):
+    """Adds an identity filter to a query.
+
+    Filters results by ID, if supplied value is a valid integer.
+    Otherwise attempts to filter results by UUID.
+
+    :param query: Initial query to add filter to.
+    :param value: Value for filtering results by.
+    :return: Modified query.
+    """
+    if utils.is_int_like(value):
+        return query.filter_by(id=value)
+    elif utils.is_uuid_like(value):
+        return query.filter_by(uuid=value)
+    else:
+        raise exception.InvalidIdentity(identity=value)
+
+
+def _paginate_query(model, limit=None, marker=None, sort_key=None,
+                    sort_dir=None, query=None):
+    if not query:
+        query = model_query(model)
+    sort_keys = ['id']
+    if sort_key and sort_key not in sort_keys:
+        sort_keys.insert(0, sort_key)
+    query = db_utils.paginate_query(query, model, limit, sort_keys,
+                                    marker=marker, sort_dir=sort_dir)
+    return query.all()
+
+
+class Connection(api.Connection):
+    """SqlAlchemy connection."""
+
+    def __init__(self):
+        pass
+
+    def _add_tenant_filters(self, context, query):
+        if context.project_id:
+            query = query.filter_by(project_id=context.project_id)
+        else:
+            query = query.filter_by(user_id=context.user_id)
+
+        return query
+
+    def _add_tests_filters(self, query, filters):
+        if filters is None:
+            filters = []
+
+        if 'name' in filters:
+            query = query.filter_by(name=filters['name'])
+
+        return query
+
+    def get_test_list(self, context, filters=None, limit=None, marker=None,
+                      sort_key=None, sort_dir=None):
+        # query = model_query(models.cpulse)
+        query = model_query(models.cpulse)
+        return _paginate_query(models.cpulse, limit, marker,
+                               sort_key, sort_dir, query)
+
+    def create_test(self, values):
+        # ensure defaults are present for new tests
+        if not values.get('uuid'):
+            values['uuid'] = utils.generate_uuid()
+
+        if not values.get('id'):
+            values['id'] = 777
+
+        cpulse = models.cpulse()
+        cpulse.update(values)
+        # TODO(VINOD)
+        try:
+            cpulse.save()
+        except db_exc.DBDuplicateEntry:
+            raise exception.TestAlreadyExists(uuid=values['uuid'])
+        return cpulse
+
+    def get_test_by_id(self, context, test_id):
+        query = model_query(models.cpulse)
+        query = self._add_tenant_filters(context, query)
+        query = query.filter_by(id=test_id)
+        try:
+            return query.one()
+        except sqlalchemy.orm.exc.NoResultFound:
+            raise exception.TestNotFound(test=test_id)
+
+    def get_test_by_name(self, context, test_name):
+        query = model_query(models.cpulse)
+        query = self._add_tenant_filters(context, query)
+        query = query.filter_by(name=test_name)
+        try:
+            return query.one()
+        except sqlalchemy.orm.exc.MultipleResultsFound:
+            raise exception.Conflict('Multiple tests exist with same name.'
+                                     ' Please use the test uuid instead.')
+        except sqlalchemy.orm.exc.NoResultFound:
+            raise exception.TestNotFound(test=test_name)
+
+    def get_test_by_uuid(self, context, uuid):
+        query = model_query(models.cpulse)
+        # query = self._add_tenant_filters(context, query)
+        query = query.filter_by(uuid=uuid)
+        try:
+            return query.one()
+        except sqlalchemy.orm.exc.NoResultFound:
+            raise exception.TestNotFound(test=uuid)
+
+    def destroy_test(self, test_id):
+        session = get_session()
+        test_ref = None
+        with session.begin():
+            query = model_query(models.cpulse, session=session)
+            query = add_identity_filter(query, test_id)
+
+            try:
+                test_ref = query.one()
+            except sqlalchemy.orm.exc.NoResultFound:
+                raise exception.TestNotFound(test=test_id)
+            query.delete()
+
+        return test_ref
+
+    def update_test(self, test_id, values):
+        if 'uuid' in values:
+            msg = _("Cannot overwrite UUID for an existing test.")
+            raise exception.InvalidParameterValue(err=msg)
+
+        return self._do_update_test(test_id, values)
+
+    def _do_update_test(self, test_id, values):
+        session = get_session()
+        with session.begin():
+            query = model_query(models.cpulse, session=session)
+            query = add_identity_filter(query, test_id)
+            try:
+                ref = query.with_lockmode('update').one()
+            except sqlalchemy.orm.exc.NoResultFound:
+                raise exception.TestNotFound(test=test_id)
+
+            if 'provision_state' in values:
+                values['provision_updated_at'] = timeutils.utcnow()
+
+            ref.update(values)
+        return ref
+
+    def create_test_lock(self, test_uuid, conductor_id):
+        pass
+
+    def steal_test_lock(self, test_uuid, old_conductor_id, new_conductor_id):
+        pass
+
+    def release_test_lock(self, test_uuid, conductor_id):
+        pass
diff --git a/cloudpulse/db/sqlalchemy/models.py b/cloudpulse/db/sqlalchemy/models.py
new file mode 100644
index 0000000..ee2b0ac
--- /dev/null
+++ b/cloudpulse/db/sqlalchemy/models.py
@@ -0,0 +1,138 @@
+# Copyright 2013 Hewlett-Packard Development Company, L.P.
+#
+#    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.
+
+"""
+SQLAlchemy models for cloudpulse service
+"""
+
+import json
+
+from oslo_config import cfg
+from oslo_db import options as db_options
+from oslo_db.sqlalchemy import models
+import six.moves.urllib.parse as urlparse
+from sqlalchemy import Column
+from sqlalchemy.ext.declarative import declarative_base
+from sqlalchemy import Integer
+from sqlalchemy import schema
+from sqlalchemy import String
+from sqlalchemy import Text
+from sqlalchemy.types import TypeDecorator, TEXT
+
+from cloudpulse.common import paths
+
+
+sql_opts = [
+    cfg.StrOpt('mysql_engine',
+               default='InnoDB',
+               help='MySQL engine to use.')
+]
+
+_DEFAULT_SQL_CONNECTION = ('sqlite:///' +
+                           paths.state_path_def('cloudpulse.sqlite'))
+
+cfg.CONF.register_opts(sql_opts, 'database')
+db_options.set_defaults(cfg.CONF, _DEFAULT_SQL_CONNECTION, 'cloudpulse.sqlite')
+
+
+def table_args():
+    engine_name = urlparse.urlparse(cfg.CONF.database.connection).scheme
+    if engine_name == 'mysql':
+        return {'mysql_engine': cfg.CONF.database.mysql_engine,
+                'mysql_charset': "utf8"}
+    return None
+
+
+class JsonEncodedType(TypeDecorator):
+    """Abstract base type serialized as json-encoded string in db."""
+    type = None
+    impl = TEXT
+
+    def process_bind_param(self, value, dialect):
+        if value is None:
+            # Save default value according to current type to keep the
+            # interface the consistent.
+            value = self.type()
+        elif not isinstance(value, self.type):
+            raise TypeError("%s supposes to store %s objects, but %s given"
+                            % (self.__class__.__name__,
+                               self.type.__name__,
+                               type(value).__name__))
+        serialized_value = json.dumps(value)
+        return serialized_value
+
+    def process_result_value(self, value, dialect):
+        if value is not None:
+            value = json.loads(value)
+        return value
+
+
+class JSONEncodedDict(JsonEncodedType):
+    """Represents dict serialized as json-encoded string in db."""
+    type = dict
+
+
+class JSONEncodedList(JsonEncodedType):
+    """Represents list serialized as json-encoded string in db."""
+    type = list
+
+
+class CpulseBase(models.TimestampMixin,
+                 models.ModelBase):
+
+    metadata = None
+
+    def as_dict(self):
+        d = {}
+        for c in self.__table__.columns:
+            d[c.name] = self[c.name]
+        return d
+
+    def save(self, session=None):
+        import cloudpulse.db.sqlalchemy.api as db_api
+
+        if session is None:
+            session = db_api.get_session()
+
+        super(CpulseBase, self).save(session)
+
+Base = declarative_base(cls=CpulseBase)
+
+
+class cpulse(Base):
+    """Represents cloudpulse test"""
+
+    __tablename__ = 'cpulse'
+    __table_args__ = (
+        schema.UniqueConstraint('uuid', name='uniq_test0uuid'),
+        table_args()
+        )
+    id = Column(Integer, primary_key=True)
+    uuid = Column(String(64))
+    name = Column(String(255))
+    state = Column(String(255))
+    result = Column(Text)
+
+
+class CpulseLock(Base):
+    """Represents a cpulselock."""
+
+    __tablename__ = 'cpulselock'
+    __table_args__ = (
+        schema.UniqueConstraint('test_uuid', name='uniq_testlock0test_uuid'),
+        table_args()
+        )
+    id = Column(Integer, primary_key=True)
+    test_uuid = Column(String(36))
+    conductor_id = Column(String(64))
diff --git a/requirements.txt b/requirements.txt
index 95137a6..f9b5f9a 100644
--- a/requirements.txt
+++ b/requirements.txt
@@ -4,3 +4,18 @@
 
 pbr>=0.6,!=0.7,<1.0
 Babel>=1.3
+
+jsonpatch>=1.1
+oslo.concurrency>=1.8.0,<1.9.0         # Apache-2.0
+oslo.config>=1.9.3,<1.10.0  # Apache-2.0
+oslo.context>=0.2.0,<0.3.0                     # Apache-2.0
+oslo.db>=1.7.0,<1.8.0  # Apache-2.0
+oslo.messaging>=1.8.0,<1.9.0  # Apache-2.0
+oslo.serialization>=1.4.0,<1.5.0               # Apache-2.0
+oslo.utils>=1.4.0,<1.5.0                       # Apache-2.0
+oslo.versionedobjects>=0.1.1,<0.2.0
+oslo.i18n>=1.5.0,<1.6.0  # Apache-2.0
+six>=1.9.0
+SQLAlchemy>=0.9.7,<=0.9.99
+taskflow>=0.7.1,<0.8.0
+