The aim of this report is to describe and document the configuration steps and development process of the Openlab Summer Student project. The report explains basic ideas of cloud computing. Furthermore, it introduces Openstack as a software for deploying private clouds. Openstack architecture is further explained. The focus is put on Keystone Identity Service and its architecture and role that it serves in the whole Openstack environment. Moreover, federation as a mechanism for establishing trusts between identity providers and OpenStack clouds is described. Eventually, further details are provided on token revocation mechanism. The last part describes the means for testing and debugging Openstack deployments.