diff --git a/meta/io.murano/Classes/resources/HeatSWConfigInstance.yaml b/meta/io.murano/Classes/resources/HeatSWConfigInstance.yaml
new file mode 100644
index 000000000..e11f1973f
--- /dev/null
+++ b/meta/io.murano/Classes/resources/HeatSWConfigInstance.yaml
@@ -0,0 +1,16 @@
+Namespaces:
+  =: io.murano.resources
+  sys: io.murano.system
+  std: io.murano
+
+Name: HeatSWConfigInstance
+
+Extends:
+  - Instance
+
+Methods:
+  prepareUserData:
+    Body:
+      - Return:
+          data:
+          format: SOFTWARE_CONFIG
diff --git a/meta/io.murano/Classes/resources/HeatSWConfigLinuxInstance.yaml b/meta/io.murano/Classes/resources/HeatSWConfigLinuxInstance.yaml
new file mode 100644
index 000000000..8fd0bdd60
--- /dev/null
+++ b/meta/io.murano/Classes/resources/HeatSWConfigLinuxInstance.yaml
@@ -0,0 +1,11 @@
+Namespaces:
+  =: io.murano.resources
+  sys: io.murano.system
+  std: io.murano
+
+Name: HeatSWConfigLinuxInstance
+
+Extends:
+  - LinuxInstance
+  - HeatSWConfigInstance
+
diff --git a/meta/io.murano/Classes/resources/Instance.yaml b/meta/io.murano/Classes/resources/Instance.yaml
index 9902ecacd..0be1a48fd 100644
--- a/meta/io.murano/Classes/resources/Instance.yaml
+++ b/meta/io.murano/Classes/resources/Instance.yaml
@@ -82,7 +82,9 @@ Methods:
           $.joinNet($.environment.defaultNetworks.flat, $securityGroupName)
       - $.networks.customNetworks.select($this.joinNet($, $securityGroupName))
 
-      - $userData: $.prepareUserData()
+      - $preparedUserData: $.prepareUserData()
+      - $userData: $preparedUserData.data
+      - $userDataFormat: $preparedUserData.format
 
       - $template:
           resources:
@@ -92,6 +94,7 @@ Methods:
                 flavor: $.flavor
                 image: $.image
                 user_data: $userData
+                user_data_format: $userDataFormat
                 key_name: $.keyname
           outputs:
             format('{0}-assigned-ip', $.name):
@@ -231,3 +234,8 @@ Methods:
           Contract: $.string().notNull()
 
   prepareUserData:
+    Body:
+      Return:
+        data: null
+        # Valid values are HEAT_CFNTOOLS, RAW and SOFTWARE_CONFIG
+        format: HEAT_CFNTOOLS
diff --git a/meta/io.murano/Classes/resources/LinuxMuranoInstance.yaml b/meta/io.murano/Classes/resources/LinuxMuranoInstance.yaml
index 32d387d98..cbd80e414 100644
--- a/meta/io.murano/Classes/resources/LinuxMuranoInstance.yaml
+++ b/meta/io.murano/Classes/resources/LinuxMuranoInstance.yaml
@@ -29,5 +29,7 @@ Methods:
           "%INTERNAL_HOSTNAME%": $.name
           "%MURANO_SERVER_ADDRESS%": coalesce(config(file_server), config(rabbitmq, host))
           "%CA_ROOT_CERT_BASE64%": ""
-      - Return: $initScript.replace($scriptReplacements)
+      - Return:
+          data: $initScript.replace($scriptReplacements)
+          format: HEAT_CFNTOOLS
 
diff --git a/meta/io.murano/Classes/resources/LinuxUDInstance.yaml b/meta/io.murano/Classes/resources/LinuxUDInstance.yaml
index 53a686679..43ced7bc2 100644
--- a/meta/io.murano/Classes/resources/LinuxUDInstance.yaml
+++ b/meta/io.murano/Classes/resources/LinuxUDInstance.yaml
@@ -16,7 +16,9 @@ Properties:
 Methods:
   prepareUserData:
     Body:
-      - Return: $.customUserData
+      - Return:
+          data: $.customUserData
+          format: HEAT_CFNTOOLS
 
   setCustomUserData:
     Arguments:
diff --git a/meta/io.murano/Classes/resources/WindowsInstance.yaml b/meta/io.murano/Classes/resources/WindowsInstance.yaml
index 212d79c0f..1b84a34d8 100644
--- a/meta/io.murano/Classes/resources/WindowsInstance.yaml
+++ b/meta/io.murano/Classes/resources/WindowsInstance.yaml
@@ -42,4 +42,6 @@ Methods:
           "%INTERNAL_HOSTNAME%": $.name
           "%MURANO_SERVER_ADDRESS%": coalesce(config(file_server), config(rabbitmq, host))
           "%CA_ROOT_CERT_BASE64%": ""
-      - Return: $initScript.replace($scriptReplacements)
+      - Return: 
+          data: $initScript.replace($scriptReplacements)
+          format: HEAT_CFNTOOLS
diff --git a/meta/io.murano/manifest.yaml b/meta/io.murano/manifest.yaml
index 9afa14685..65b37046f 100644
--- a/meta/io.murano/manifest.yaml
+++ b/meta/io.murano/manifest.yaml
@@ -27,6 +27,8 @@ Classes:
   io.murano.resources.Instance: resources/Instance.yaml
   io.murano.resources.LinuxInstance: resources/LinuxInstance.yaml
   io.murano.resources.LinuxMuranoInstance: resources/LinuxMuranoInstance.yaml
+  io.murano.resources.HeatSWConfigInstance: resources/HeatSWConfigInstance.yaml
+  io.murano.resources.HeatSWConfigLinuxInstance: resources/HeatSWConfigLinuxInstance.yaml
   io.murano.resources.LinuxUDInstance: resources/LinuxUDInstance.yaml
   io.murano.resources.WindowsInstance: resources/WindowsInstance.yaml
   io.murano.resources.NeutronNetwork: resources/NeutronNetwork.yaml