1. A method for processing information regarding virtual machine host isolation, the method comprising: federating a cluster of compute nodes including a first compute node and a third compute node including designating the first compute node as a downstream manager and the third compute node and any remaining compute nodes as the location for downstream agents, wherein the federated cluster is configured to logically appear to a second compute node as an upstream manager component as a single compute node; receiving, at the first compute node, an instruction from the second compute node via a first application server to define a virtual machine; and sending, from the first compute node, an instruction to the third compute node via a second application server to define a virtual machine.