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Cloudbase-init is used to provision the Windows instance in an automated manner. The default way to use Windows with cloudbase-init is the following:

  1. Create the Windows image from an ISO and apply all your required patches, applications, etc
  2. Install cloudbase-init using the installer during which you also sysprep the Windows instance using the cloudbase-init's sysprep configuration file
  3. Shutdown the Windows instance and move the backing file to the cloud of choice image repository
  4. Boot a Windows instance from that image. Here is when cloudbase-init is being executed: i. first time during the Sysprep Specialize step as a process started under user LocalSystem. The cloudbase-init configuration for this run is located at " "C:\Program Files\Cloudbase Solutions\Cloudbase-Init\conf\cloudbase-init-unattend.conf". After cloudbase-init unattend is executed, sysprep triggers a Windows reboot. Keep in mind that during this stage, some Windows APIs or capabilities are not supported (WMI in special). ii. At every subsequent boot, cloudbase-init process is started by the cloudbase-init Windows service (service which has been installed during step 2) and the process is run under user cloudbase-init (if not specified otherwise during step 2).

To answer this part: "If cloubase-init.conf has also the username/groups entries, it will change the password of the admin user at each reboot ? The only way to automaticaly change this password and be able to get it vith the nova command" >> the cloudbase-init plugins have a saved state in the registry hive, so that they do not get executed twice if the plugin had a successful run. In the case mentioned by you, the setuserpassword plugin will get executed only once if there are no failures during the plugin run.

Thank you,
Adrian Vladu