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An agent called Cloud-Init on Linux and Cloudbase-Init on Windows runs as part of the initial guest provisioning.

There are quite a few actions performed, with username and password management being just one of those.

By default a user called admin is provisioned on the instance. The encrypted password can be retrieved with nova get-password (there's an Horizon equivalent UI action):

nova get-password vm1 ~\.ssh\id_rsa

PowerShell userdata scripts can also be passed as part of the boot action (see for example the Horizon interface), for example:

#ps1
Set-Content c:\hello.txt "Hello OpenStack"

Some suggested introductory readings:

Cloudbase-Init: http://www.cloudbase.it/cloud-init-windows

Cloudbase-init github site for reference documentation: https://github.com/stackforge/cloudbase-init

For orchestration:

Windows Heat templates: https://github.com/openstack/heat-templates

Juju orchestration: http://www.cloudbase.it/juju/