The current dynamic virtualisation support relies on oVirt Engine/RHEV-M as the external virtualisation provider. Dynamic virtualisation should support OpenStack as well (or instead), initially relying on a bootstrap image that invokes the full Anaconda installer (thus allowing the existing kickstart based system initialisation to work normally).
The corresponding design proposal is here: https://beaker-project.org/dev/proposals/dynamic-virtualization.html although I see that it needs a bit of tweaking in light of my experiments.
Dan's patches: http://gerrit.beaker-project.org/#/q/status:open+project:beaker+branch:develop+topic:openstack,n,z
The initial patch series is now merged: http://gerrit.beaker-project.org/3085 http://gerrit.beaker-project.org/3089 http://gerrit.beaker-project.org/3091 http://gerrit.beaker-project.org/3092 http://gerrit.beaker-project.org/3097 It's still not perfect, but we are considering it "done enough" for this RFE. Further improvements/fixes will be filed as new bugs.
Beaker 0.17.0 has been released.