diff --git a/.gitignore b/.gitignore
index 3c3629e..c9d43bc 100644
--- a/.gitignore
+++ b/.gitignore
@@ -1 +1,4 @@
 node_modules
+*.swp
+coverage
+.env
diff --git a/Dockerfile b/Dockerfile
new file mode 100644
index 0000000..6790509
--- /dev/null
+++ b/Dockerfile
@@ -0,0 +1,2 @@
+FROM node:0.10-onbuild
+EXPOSE 8000
diff --git a/README.md b/README.md
index c981d6f..7fea053 100644
--- a/README.md
+++ b/README.md
@@ -15,5 +15,20 @@ to be loaded by dotenv:
 
 ```
 npm install
-node server
+docker-compose up
 ```
+
+This spins up the following:
+
+* A kdihalas/beanstalkd container
+* A worker container that executes `npm run worker`
+* A web container with ```node server.js```
+
+## Job Processing
+
+compute-service contains a worker that can read jobs from a beanstalkd queue and
+spin up instances. To configure, set the variable BEANSTALK_SERVER. The default
+value is  ```127.0.0.1:11300```. To run:
+
+```shell
+$ ./node_modules/beanstalk_worker/bin/
diff --git a/docker-compose.yml b/docker-compose.yml
new file mode 100644
index 0000000..f18e96c
--- /dev/null
+++ b/docker-compose.yml
@@ -0,0 +1,18 @@
+web:
+  build: .
+  command: node server.js
+  volumes:
+    - .:/usr/src/app
+  links:
+    - worker
+  ports:
+    - "8000:8000"
+worker:
+  build: .
+  command: npm run worker
+  volumes:
+    - .:/usr/src/app
+  links:
+    - beanstalkd
+beanstalkd:
+  image: kdihalas/beanstalkd
diff --git a/lib/config.js b/lib/config.js
index 9734b64..7d8abbc 100644
--- a/lib/config.js
+++ b/lib/config.js
@@ -6,10 +6,25 @@ dotenv.load();
 nconf.use('memory');
 nconf.env();
 
+nconf.defaults({
+  BEANSTALK_SERVER: '127.0.0.1:11300'
+});
+
+if (nconf.get('BEANSTALKD_PORT')) {
+  nconf.set('BEANSTALK_SERVER', nconf.get('BEANSTALKD_PORT_11300_TCP_ADDR')+':'+nconf.get('BEANSTALKD_PORT_11300_TCP_PORT'));
+};
+
 nconf.defaults({
   aws: {
     accessKeyId: nconf.get('AWS_ACCESS_KEY_ID'),
     secretAccessKey: nconf.get('AWS_SECRET_ACCESS_KEY')
+  },
+  beanstalk: {
+    server: nconf.get('BEANSTALK_SERVER'),
+    workers: 1
+  },
+  codius: {
+    endpoint: nconf.get('CODIUS_URI')
   }
 });
 
diff --git a/lib/job-queue.js b/lib/job-queue.js
new file mode 100644
index 0000000..c1229b8
--- /dev/null
+++ b/lib/job-queue.js
@@ -0,0 +1,72 @@
+var bluebird = require('bluebird');
+var Promise = bluebird.Promise;
+var config = require('./config');
+var beanstalk = require('nodestalker');
+
+module.exports = function(tubeName) {
+  var self = this;
+  self.client = beanstalk.Client(config.get('beanstalk:server'));
+  self.workers = {};
+  self.tubeName = tubeName;
+  bluebird.promisifyAll(self.client, {promisifier: promisify});
+  self.tubeDelay = self.client.useAsync(self.tubeName).then(function() {
+    return self.client.watchAsync(self.tubeName);
+  });
+}
+
+module.exports.prototype = {
+  useTube: function() {
+    return this.tubeDelay;
+  },
+
+  addWorker: function(name, worker) {
+    var self = this;
+    if (typeof(worker.run) !== 'function') {
+      throw new Error("Object with a run() method must be passed in");
+    }
+    self.workers[name] = worker;
+  },
+
+  enqueueJob: function(type, data) {
+    var self = this;
+    var job = {
+      type: type,
+      data: data
+    }
+    return self.client.putAsync(JSON.stringify(job));
+  },
+
+  processNextJob: function() {
+    var self = this;
+    var p = [];
+    var job;
+    return self.client.reserveAsync().then(function(_job) {
+      job = _job;
+      var realJob = JSON.parse(job.data);
+      if (realJob.type in self.workers) {
+        var r = self.workers[realJob.type].run(realJob.data);
+        if (typeof(r) === 'undefined') {
+          r = bluebird.resolve();
+        }
+        return r.then(function() {
+          return self.client.deleteJobAsync(job.id);
+        });
+      } else {
+        //FIXME: Log unhandled job
+        return self.client.releaseAsync(job.id);
+      }
+    });
+  }
+}
+
+function promisify(method) {
+  return function() {
+    var self = this;
+    var args = arguments;
+    return new bluebird.Promise(function(resolve, reject) {
+      var r = method.apply(self, args);
+      r.onSuccess(function(v) {resolve(v)});
+      r.onError(function(err) {reject(new Error(err))});
+    });
+  }
+}
diff --git a/package.json b/package.json
index 5baf5cb..12aeada 100644
--- a/package.json
+++ b/package.json
@@ -1,4 +1,9 @@
 {
+  "scripts": {
+    "test": "istanbul cover _mocha",
+    "start": "node server.js",
+    "worker": "./node_modules/beanstalk_worker/bin/worker.js `pwd`/conf/workers.js"
+  },
   "name": "compute-service",
   "version": "0.1.0",
   "description": "Codius host compute service",
@@ -10,8 +15,15 @@
   "license": "ISC",
   "dependencies": {
     "aws-sdk": "^2.1.16",
+    "beanstalk_worker": "^0.2.1",
     "bluebird": "^2.9.12",
     "dotenv": "^0.5.1",
-    "nconf": "^0.7.1"
+    "nconf": "^0.7.1",
+    "nodestalker": "^0.1.17",
+    "request-promise": "^0.4.0"
+  },
+  "devDependencies": {
+    "chai": "^2.1.1",
+    "sinon": "^1.13.0"
   }
 }
diff --git a/test/lib.job-queue.js b/test/lib.job-queue.js
new file mode 100644
index 0000000..1d501c5
--- /dev/null
+++ b/test/lib.job-queue.js
@@ -0,0 +1,34 @@
+var bluebird = require('bluebird');
+
+bluebird.longStackTraces();
+
+var chai = require('chai');
+var expect = chai.expect;
+var JobQueue = require('../lib/job-queue');
+var sinon = require('sinon');
+
+var TestWorker = function() {
+}
+
+TestWorker.prototype = {
+  run: function(data) {}
+}
+
+describe('JobQueue', function() {
+  var queue, worker;
+
+  beforeEach(function() {
+    queue = new JobQueue('test_'+Math.round(Math.random()*100));
+    worker = new TestWorker();
+    queue.addWorker('test', worker);
+  });
+
+  it('should run a job after it is enqueued', function() {
+    sinon.spy(worker, 'run');
+    return queue.enqueueJob('test', {}).then(function() {
+      return queue.processNextJob();
+    }).then(function() {
+      expect(worker.run.called).to.equal(true);
+    });
+  });
+});
diff --git a/test/workers.launch.js b/test/workers.launch.js
new file mode 100644
index 0000000..649ad88
--- /dev/null
+++ b/test/workers.launch.js
@@ -0,0 +1,26 @@
+var Promise = require('bluebird').Promise;
+var chai = require('chai');
+var expect = chai.expect;
+var JobQueue = require('../lib/job-queue');
+var sinon = require('sinon');
+
+var LaunchWorker = require('../workers/launch');
+
+describe('launch handler', function() {
+  var queue, worker;
+
+  beforeEach(function() {
+    queue = new JobQueue('test_'+Math.random()*100);
+    worker = new LaunchWorker();
+    queue.addWorker('instance_launch', worker);
+  });
+
+  it('should handle an instance launch job', function() {
+    sinon.spy(worker, 'run');
+    return queue.enqueueJob('instance_launch', {}).then(function() {
+      return queue.processNextJob();
+    }).then(function() {
+      expect(worker.run.called).to.equal(true);
+    });
+  });
+});
diff --git a/workers/launch.js b/workers/launch.js
new file mode 100644
index 0000000..a3f8b26
--- /dev/null
+++ b/workers/launch.js
@@ -0,0 +1,11 @@
+var request = require('request-promise');
+var config = require('../lib/config');
+
+module.exports = function() {
+}
+
+module.exports.prototype = {
+  run: function(data) {
+    return request(config.get('codius:endpoint'));
+  }
+}