THIS IS A TEST INSTANCE. ALL YOUR CHANGES WILL BE LOST!!!!
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Factories in cloudstack are implemented using the factory_boy(http://factoryboy.readthedocs.org/en/latest/) framework. The factory_boy framework helps cloudstack define complex relationships in its model. For eg. In order to create a virtualmachine typically one needs a service offering, a template and a zone present to be able to launch the VM. Factory boy enables traversing these object relationships effectively (top-down or bottom-up) to create those objects.
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