diff --git a/releasenotes/notes/compute-cdm-include-all-instances-f7506ded2d57732f.yaml b/releasenotes/notes/compute-cdm-include-all-instances-f7506ded2d57732f.yaml
new file mode 100644
index 000000000..e39f0e354
--- /dev/null
+++ b/releasenotes/notes/compute-cdm-include-all-instances-f7506ded2d57732f.yaml
@@ -0,0 +1,6 @@
+---
+features:
+  - Watcher has a whole scope of the cluster, when building
+    compute CDM which includes all instances.
+    It filters excluded instances when migration during the
+    audit.
\ No newline at end of file
diff --git a/watcher/decision_engine/model/model_root.py b/watcher/decision_engine/model/model_root.py
index 07dc4da8e..a72f41d4b 100644
--- a/watcher/decision_engine/model/model_root.py
+++ b/watcher/decision_engine/model/model_root.py
@@ -16,6 +16,7 @@
 Openstack implementation of the cluster graph.
 """
 
+import ast
 from lxml import etree
 import networkx as nx
 from oslo_concurrency import lockutils
@@ -225,6 +226,8 @@ class ModelRoot(nx.DiGraph, base.Model):
 
         for inst in root.findall('.//Instance'):
             instance = element.Instance(**inst.attrib)
+            instance.watcher_exclude = ast.literal_eval(
+                inst.attrib["watcher_exclude"])
             model.add_instance(instance)
 
             parent = inst.getparent()
diff --git a/watcher/decision_engine/strategy/strategies/basic_consolidation.py b/watcher/decision_engine/strategy/strategies/basic_consolidation.py
index c3fdcb4fa..5be5cf325 100644
--- a/watcher/decision_engine/strategy/strategies/basic_consolidation.py
+++ b/watcher/decision_engine/strategy/strategies/basic_consolidation.py
@@ -400,6 +400,11 @@ class BasicConsolidation(base.ServerConsolidationBaseStrategy):
                                  sorted_score):
         number_migrations = 0
         for mig_instance, __ in sorted_instances:
+            # skip exclude instance when migrating
+            if mig_instance.watcher_exclude:
+                LOG.debug("Instance is excluded by scope, "
+                          "skipped: %s", mig_instance.uuid)
+                continue
             for node_uuid, __ in sorted_score:
                 mig_source_node = self.compute_model.get_node_by_uuid(
                     node_to_release)
diff --git a/watcher/decision_engine/strategy/strategies/outlet_temp_control.py b/watcher/decision_engine/strategy/strategies/outlet_temp_control.py
index 467a5c2c4..fdc2fd790 100644
--- a/watcher/decision_engine/strategy/strategies/outlet_temp_control.py
+++ b/watcher/decision_engine/strategy/strategies/outlet_temp_control.py
@@ -212,6 +212,11 @@ class OutletTempControl(base.ThermalOptimizationBaseStrategy):
                 mig_source_node)
             for instance in instances_of_src:
                 try:
+                    # NOTE: skip exclude instance when migrating
+                    if instance.watcher_exclude:
+                        LOG.debug("Instance is excluded by scope, "
+                                  "skipped: %s", instance.uuid)
+                        continue
                     # select the first active instance to migrate
                     if (instance.state !=
                             element.InstanceState.ACTIVE.value):
diff --git a/watcher/decision_engine/strategy/strategies/uniform_airflow.py b/watcher/decision_engine/strategy/strategies/uniform_airflow.py
index 0a4a436a4..8dd439813 100644
--- a/watcher/decision_engine/strategy/strategies/uniform_airflow.py
+++ b/watcher/decision_engine/strategy/strategies/uniform_airflow.py
@@ -240,6 +240,11 @@ class UniformAirflow(base.BaseStrategy):
                 else:
                     # migrate the first active instance
                     for instance in source_instances:
+                        # NOTE: skip exclude instance when migrating
+                        if instance.watcher_exclude:
+                            LOG.debug("Instance is excluded by scope, "
+                                      "skipped: %s", instance.uuid)
+                            continue
                         if (instance.state !=
                                 element.InstanceState.ACTIVE.value):
                             LOG.info(
diff --git a/watcher/decision_engine/strategy/strategies/vm_workload_consolidation.py b/watcher/decision_engine/strategy/strategies/vm_workload_consolidation.py
index 2af96bab4..3b2959b3e 100644
--- a/watcher/decision_engine/strategy/strategies/vm_workload_consolidation.py
+++ b/watcher/decision_engine/strategy/strategies/vm_workload_consolidation.py
@@ -504,6 +504,11 @@ class VMWorkloadConsolidation(base.ServerConsolidationBaseStrategy):
                         key=lambda x: self.get_instance_utilization(
                             x)['cpu']
                 ):
+                    # skip exclude instance when migrating
+                    if instance.watcher_exclude:
+                        LOG.debug("Instance is excluded by scope, "
+                                  "skipped: %s", instance.uuid)
+                        continue
                     for destination_node in reversed(sorted_nodes):
                         if self.instance_fits(
                                 instance, destination_node, cc):
@@ -536,6 +541,11 @@ class VMWorkloadConsolidation(base.ServerConsolidationBaseStrategy):
                 self.compute_model.get_node_instances(node),
                 key=lambda x: self.get_instance_utilization(x)['cpu'])
             for instance in reversed(instances):
+                # skip exclude instance when migrating
+                if instance.watcher_exclude:
+                    LOG.debug("Instance is excluded by scope, "
+                              "skipped: %s", instance.uuid)
+                    continue
                 dsc = len(sorted_nodes) - 1
                 for destination_node in reversed(sorted_nodes):
                     if asc >= dsc:
diff --git a/watcher/decision_engine/strategy/strategies/workload_balance.py b/watcher/decision_engine/strategy/strategies/workload_balance.py
index 426983df6..c0f0917d5 100644
--- a/watcher/decision_engine/strategy/strategies/workload_balance.py
+++ b/watcher/decision_engine/strategy/strategies/workload_balance.py
@@ -208,6 +208,11 @@ class WorkloadBalance(base.WorkloadStabilizationBaseStrategy):
                 instance_id = None
                 for instance in source_instances:
                     try:
+                        # NOTE: skip exclude instance when migrating
+                        if instance.watcher_exclude:
+                            LOG.debug("Instance is excluded by scope, "
+                                      "skipped: %s", instance.uuid)
+                            continue
                         # select the first active VM to migrate
                         if (instance.state !=
                                 element.InstanceState.ACTIVE.value):
diff --git a/watcher/decision_engine/strategy/strategies/workload_stabilization.py b/watcher/decision_engine/strategy/strategies/workload_stabilization.py
index bf4d4edef..e657b8227 100644
--- a/watcher/decision_engine/strategy/strategies/workload_stabilization.py
+++ b/watcher/decision_engine/strategy/strategies/workload_stabilization.py
@@ -412,10 +412,15 @@ class WorkloadStabilization(base.WorkloadStabilizationBaseStrategy):
             c_nodes.remove(src_host)
             node_list = yield_nodes(c_nodes)
             for instance in self.compute_model.get_node_instances(src_node):
-                min_sd_case = {'value': current_weighted_sd}
+                # NOTE: skip exclude instance when migrating
+                if instance.watcher_exclude:
+                    LOG.debug("Instance is excluded by scope, "
+                              "skipped: %s", instance.uuid)
+                    continue
                 if instance.state not in [element.InstanceState.ACTIVE.value,
                                           element.InstanceState.PAUSED.value]:
                     continue
+                min_sd_case = {'value': current_weighted_sd}
                 for dst_host in next(node_list):
                     dst_node = self.compute_model.get_node_by_uuid(dst_host)
                     sd_case = self.calculate_migration_case(
diff --git a/watcher/tests/decision_engine/model/data/scenario_1.xml b/watcher/tests/decision_engine/model/data/scenario_1.xml
index 7476af277..95cba68a9 100644
--- a/watcher/tests/decision_engine/model/data/scenario_1.xml
+++ b/watcher/tests/decision_engine/model/data/scenario_1.xml
@@ -1,47 +1,47 @@
 <ModelRoot>
   <ComputeNode human_id="" uuid="Node_0" status="enabled" state="up" id="0" hostname="hostname_0" vcpus="40" disk="250" disk_capacity="250" memory="132">
-    <Instance state="active" human_id="" uuid="INSTANCE_0" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-    <Instance state="active" human_id="" uuid="INSTANCE_1" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_0" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_1" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
   </ComputeNode>
   <ComputeNode human_id="" uuid="Node_1" status="enabled" state="up" id="1" hostname="hostname_1" vcpus="40" disk="250" disk_capacity="250" memory="132">
-    <Instance state="active" human_id="" uuid="INSTANCE_2" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_2" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
   </ComputeNode>
   <ComputeNode human_id="" uuid="Node_2" status="enabled" state="up" id="2" hostname="hostname_2" vcpus="40" disk="250" disk_capacity="250" memory="132">
-    <Instance state="active" human_id="" uuid="INSTANCE_3" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-    <Instance state="active" human_id="" uuid="INSTANCE_4" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-    <Instance state="active" human_id="" uuid="INSTANCE_5" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_3" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_4" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_5" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
   </ComputeNode>
   <ComputeNode human_id="" uuid="Node_3" status="enabled" state="up" id="3" hostname="hostname_3" vcpus="40" disk="250" disk_capacity="250" memory="132">
-    <Instance state="active" human_id="" uuid="INSTANCE_6" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_6" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
   </ComputeNode>
   <ComputeNode human_id="" uuid="Node_4" status="enabled" state="up" id="4" hostname="hostname_4" vcpus="40" disk="250" disk_capacity="250" memory="132">
-    <Instance state="active" human_id="" uuid="INSTANCE_7" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_7" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
   </ComputeNode>
-  <Instance state="active" human_id="" uuid="INSTANCE_10" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_11" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_12" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_13" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_14" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_15" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_16" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_17" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_18" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_19" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_20" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_21" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_22" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_23" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_24" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_25" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_26" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_27" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_28" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_29" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_30" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_31" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_32" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_33" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_34" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_8" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_9" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_10" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_11" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_12" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_13" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_14" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_15" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_16" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_17" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_18" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_19" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_20" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_21" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_22" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_23" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_24" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_25" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_26" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_27" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_28" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_29" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_30" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_31" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_32" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_33" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_34" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_8" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_9" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
 </ModelRoot>
diff --git a/watcher/tests/decision_engine/model/data/scenario_1_with_1_node_unavailable.xml b/watcher/tests/decision_engine/model/data/scenario_1_with_1_node_unavailable.xml
index ad95c2fda..fb19025f1 100644
--- a/watcher/tests/decision_engine/model/data/scenario_1_with_1_node_unavailable.xml
+++ b/watcher/tests/decision_engine/model/data/scenario_1_with_1_node_unavailable.xml
@@ -1,50 +1,50 @@
 <ModelRoot>
   <ComputeNode human_id="" uuid="Node_0" status="enabled" state="up" id="0" hostname="hostname_0" vcpus="40" disk="250" disk_capacity="250" memory="132">
-    <Instance state="active" human_id="" uuid="INSTANCE_0" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-    <Instance state="active" human_id="" uuid="INSTANCE_1" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_0" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_1" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
   </ComputeNode>
   <ComputeNode human_id="" uuid="Node_1" status="enabled" state="up" id="1" hostname="hostname_1" vcpus="40" disk="250" disk_capacity="250" memory="132">
-    <Instance state="active" human_id="" uuid="INSTANCE_2" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_2" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
   </ComputeNode>
   <ComputeNode human_id="" uuid="Node_2" status="enabled" state="up" id="2" hostname="hostname_2" vcpus="40" disk="250" disk_capacity="250" memory="132">
-    <Instance state="active" human_id="" uuid="INSTANCE_3" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-    <Instance state="active" human_id="" uuid="INSTANCE_4" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-    <Instance state="active" human_id="" uuid="INSTANCE_5" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_3" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_4" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_5" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
   </ComputeNode>
   <ComputeNode human_id="" uuid="Node_3" status="enabled" state="up" id="3" hostname="hostname_3" vcpus="40" disk="250" disk_capacity="250" memory="132">
-    <Instance state="active" human_id="" uuid="INSTANCE_6" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_6" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
   </ComputeNode>
   <ComputeNode human_id="" uuid="Node_4" status="enabled" state="up" id="4" hostname="hostname_4" vcpus="40" disk="250" disk_capacity="250" memory="132">
-    <Instance state="active" human_id="" uuid="INSTANCE_7" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_7" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
   </ComputeNode>
   <ComputeNode human_id="" uuid="LOST_NODE" status="enabled" state="up" id="1" hostname="hostname_7" vcpus="40" disk="250" disk_capacity="250" memory="132">
-    <Instance state="active" human_id="" uuid="LOST_INSTANCE" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="False" state="active" human_id="" uuid="LOST_INSTANCE" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
   </ComputeNode>
-  <Instance state="active" human_id="" uuid="INSTANCE_10" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_11" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_12" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_13" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_14" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_15" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_16" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_17" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_18" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_19" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_20" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_21" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_22" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_23" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_24" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_25" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_26" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_27" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_28" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_29" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_30" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_31" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_32" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_33" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_34" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_8" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-  <Instance state="active" human_id="" uuid="INSTANCE_9" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_10" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_11" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_12" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_13" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_14" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_15" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_16" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_17" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_18" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_19" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_20" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_21" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_22" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_23" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_24" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_25" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_26" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_27" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_28" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_29" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_30" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_31" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_32" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_33" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_34" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_8" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_9" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
 </ModelRoot>
diff --git a/watcher/tests/decision_engine/model/data/scenario_1_with_all_instances_exclude.xml b/watcher/tests/decision_engine/model/data/scenario_1_with_all_instances_exclude.xml
new file mode 100644
index 000000000..6b4f87012
--- /dev/null
+++ b/watcher/tests/decision_engine/model/data/scenario_1_with_all_instances_exclude.xml
@@ -0,0 +1,47 @@
+<ModelRoot>
+  <ComputeNode human_id="" uuid="Node_0" status="enabled" state="up" id="0" hostname="hostname_0" vcpus="40" disk="250" disk_capacity="250" memory="132">
+    <Instance watcher_exclude="True" state="active" human_id="" uuid="INSTANCE_0" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="True" state="active" human_id="" uuid="INSTANCE_1" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  </ComputeNode>
+  <ComputeNode human_id="" uuid="Node_1" status="enabled" state="up" id="1" hostname="hostname_1" vcpus="40" disk="250" disk_capacity="250" memory="132">
+    <Instance watcher_exclude="True" state="active" human_id="" uuid="INSTANCE_2" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  </ComputeNode>
+  <ComputeNode human_id="" uuid="Node_2" status="enabled" state="up" id="2" hostname="hostname_2" vcpus="40" disk="250" disk_capacity="250" memory="132">
+    <Instance watcher_exclude="True" state="active" human_id="" uuid="INSTANCE_3" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="True" state="active" human_id="" uuid="INSTANCE_4" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="True" state="active" human_id="" uuid="INSTANCE_5" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  </ComputeNode>
+  <ComputeNode human_id="" uuid="Node_3" status="enabled" state="up" id="3" hostname="hostname_3" vcpus="40" disk="250" disk_capacity="250" memory="132">
+    <Instance watcher_exclude="True" state="active" human_id="" uuid="INSTANCE_6" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  </ComputeNode>
+  <ComputeNode human_id="" uuid="Node_4" status="enabled" state="up" id="4" hostname="hostname_4" vcpus="40" disk="250" disk_capacity="250" memory="132">
+    <Instance watcher_exclude="True" state="active" human_id="" uuid="INSTANCE_7" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  </ComputeNode>
+  <Instance watcher_exclude="True" state="active" human_id="" uuid="INSTANCE_10" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="True" state="active" human_id="" uuid="INSTANCE_11" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="True" state="active" human_id="" uuid="INSTANCE_12" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="True" state="active" human_id="" uuid="INSTANCE_13" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="True" state="active" human_id="" uuid="INSTANCE_14" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="True" state="active" human_id="" uuid="INSTANCE_15" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="True" state="active" human_id="" uuid="INSTANCE_16" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="True" state="active" human_id="" uuid="INSTANCE_17" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="True" state="active" human_id="" uuid="INSTANCE_18" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="True" state="active" human_id="" uuid="INSTANCE_19" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="True" state="active" human_id="" uuid="INSTANCE_20" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="True" state="active" human_id="" uuid="INSTANCE_21" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="True" state="active" human_id="" uuid="INSTANCE_22" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="True" state="active" human_id="" uuid="INSTANCE_23" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="True" state="active" human_id="" uuid="INSTANCE_24" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="True" state="active" human_id="" uuid="INSTANCE_25" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="True" state="active" human_id="" uuid="INSTANCE_26" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="True" state="active" human_id="" uuid="INSTANCE_27" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="True" state="active" human_id="" uuid="INSTANCE_28" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="True" state="active" human_id="" uuid="INSTANCE_29" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="True" state="active" human_id="" uuid="INSTANCE_30" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="True" state="active" human_id="" uuid="INSTANCE_31" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="True" state="active" human_id="" uuid="INSTANCE_32" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="True" state="active" human_id="" uuid="INSTANCE_33" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="True" state="active" human_id="" uuid="INSTANCE_34" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="True" state="active" human_id="" uuid="INSTANCE_8" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+  <Instance watcher_exclude="True" state="active" human_id="" uuid="INSTANCE_9" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+</ModelRoot>
diff --git a/watcher/tests/decision_engine/model/data/scenario_1_with_metrics.xml b/watcher/tests/decision_engine/model/data/scenario_1_with_metrics.xml
index 17c084c40..fffa2fcc2 100644
--- a/watcher/tests/decision_engine/model/data/scenario_1_with_metrics.xml
+++ b/watcher/tests/decision_engine/model/data/scenario_1_with_metrics.xml
@@ -1,8 +1,8 @@
 <ModelRoot>
   <ComputeNode hostname="hostname_0" uuid="Node_0" id="0" state="up" human_id="" status="enabled" vcpus="40" disk="250" disk_capacity="250" memory="64">
-    <Instance human_id="" state="active" uuid="INSTANCE_0" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="False" human_id="" state="active" uuid="INSTANCE_0" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
   </ComputeNode>
   <ComputeNode hostname="hostname_1" uuid="Node_1" id="1" state="up" human_id="" status="enabled" vcpus="40" disk="250" disk_capacity="250" memory="64">
-    <Instance human_id="" state="active" uuid="INSTANCE_1" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="False" human_id="" state="active" uuid="INSTANCE_1" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
   </ComputeNode>
 </ModelRoot>
diff --git a/watcher/tests/decision_engine/model/data/scenario_2_with_metrics.xml b/watcher/tests/decision_engine/model/data/scenario_2_with_metrics.xml
index 668ef1985..6e94543f4 100644
--- a/watcher/tests/decision_engine/model/data/scenario_2_with_metrics.xml
+++ b/watcher/tests/decision_engine/model/data/scenario_2_with_metrics.xml
@@ -1,11 +1,11 @@
 <ModelRoot>
   <ComputeNode hostname="hostname_0" uuid="Node_0" id="0" state="up" human_id="" status="enabled" vcpus="16" disk="250" disk_capacity="250" memory="64">
-    <Instance human_id="" state="active" uuid="INSTANCE_0" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-    <Instance human_id="" state="active" uuid="INSTANCE_1" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-    <Instance human_id="" state="active" uuid="INSTANCE_2" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-    <Instance human_id="" state="active" uuid="INSTANCE_3" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-    <Instance human_id="" state="active" uuid="INSTANCE_4" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-    <Instance human_id="" state="active" uuid="INSTANCE_5" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="False" human_id="" state="active" uuid="INSTANCE_0" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="False" human_id="" state="active" uuid="INSTANCE_1" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="False" human_id="" state="active" uuid="INSTANCE_2" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="False" human_id="" state="active" uuid="INSTANCE_3" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="False" human_id="" state="active" uuid="INSTANCE_4" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="False" human_id="" state="active" uuid="INSTANCE_5" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
   </ComputeNode>
   <ComputeNode hostname="hostname_1" uuid="Node_1" id="1" state="up" human_id="" status="enabled" vcpus="16" disk="250" disk_capacity="250" memory="64"/>
   <ComputeNode hostname="hostname_2" uuid="Node_2" id="2" state="up" human_id="" status="enabled" vcpus="16" disk="250" disk_capacity="250" memory="64"/>
diff --git a/watcher/tests/decision_engine/model/data/scenario_3_with_2_nodes.xml b/watcher/tests/decision_engine/model/data/scenario_3_with_2_nodes.xml
index 189d81ee9..209a83684 100644
--- a/watcher/tests/decision_engine/model/data/scenario_3_with_2_nodes.xml
+++ b/watcher/tests/decision_engine/model/data/scenario_3_with_2_nodes.xml
@@ -1,8 +1,8 @@
 <ModelRoot>
   <ComputeNode human_id="" uuid="Node_0" status="enabled" state="up" id="0" hostname="hostname_0" vcpus="40" disk="250" disk_capacity="250" memory="132">
-    <Instance state="active" human_id="" uuid="73b09e16-35b7-4922-804e-e8f5d9b740fc" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="False" state="active" human_id="" uuid="73b09e16-35b7-4922-804e-e8f5d9b740fc" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
   </ComputeNode>
   <ComputeNode human_id="" uuid="Node_1" status="enabled" state="up" id="1" hostname="hostname_1" vcpus="40" disk="250" disk_capacity="250" memory="132">
-    <Instance state="active" human_id="" uuid="a4cab39b-9828-413a-bf88-f76921bf1517" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="False" state="active" human_id="" uuid="a4cab39b-9828-413a-bf88-f76921bf1517" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
   </ComputeNode>
 </ModelRoot>
diff --git a/watcher/tests/decision_engine/model/data/scenario_3_with_metrics.xml b/watcher/tests/decision_engine/model/data/scenario_3_with_metrics.xml
index 5c6079916..e734d3595 100644
--- a/watcher/tests/decision_engine/model/data/scenario_3_with_metrics.xml
+++ b/watcher/tests/decision_engine/model/data/scenario_3_with_metrics.xml
@@ -1,9 +1,9 @@
 <ModelRoot>
   <ComputeNode hostname="hostname_0" uuid="Node_0" id="0" state="up" human_id="" status="enabled" vcpus="10" disk="250" disk_capacity="250" memory="64">
-    <Instance human_id="" state="active" uuid="INSTANCE_6" vcpus="1" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-    <Instance human_id="" state="active" uuid="INSTANCE_7" vcpus="2" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-    <Instance human_id="" state="active" uuid="INSTANCE_8" vcpus="4" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-    <Instance human_id="" state="active" uuid="INSTANCE_9" vcpus="8" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="False" human_id="" state="active" uuid="INSTANCE_6" vcpus="1" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="False" human_id="" state="active" uuid="INSTANCE_7" vcpus="2" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="False" human_id="" state="active" uuid="INSTANCE_8" vcpus="4" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="False" human_id="" state="active" uuid="INSTANCE_9" vcpus="8" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
   </ComputeNode>
   <ComputeNode hostname="hostname_1" uuid="Node_1" id="1" state="up" human_id="" status="enabled" vcpus="10" disk="250" disk_capacity="250" memory="64"/>
 </ModelRoot>
diff --git a/watcher/tests/decision_engine/model/data/scenario_5_with_instance_disk_0.xml b/watcher/tests/decision_engine/model/data/scenario_5_with_instance_disk_0.xml
index a8bffab30..0d71f90f8 100644
--- a/watcher/tests/decision_engine/model/data/scenario_5_with_instance_disk_0.xml
+++ b/watcher/tests/decision_engine/model/data/scenario_5_with_instance_disk_0.xml
@@ -1,5 +1,5 @@
 <ModelRoot>
   <ComputeNode human_id="" uuid="Node_0" status="enabled" state="up" id="0" hostname="hostname_0" vcpus="4" disk="4" disk_capacity="4" memory="4">
-    <Instance state="active" human_id="" uuid="INSTANCE_0" vcpus="4" disk="0" disk_capacity="0" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_0" vcpus="4" disk="0" disk_capacity="0" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
   </ComputeNode>
 </ModelRoot>
diff --git a/watcher/tests/decision_engine/model/data/scenario_6_with_2_nodes.xml b/watcher/tests/decision_engine/model/data/scenario_6_with_2_nodes.xml
index 636827c63..a75be0abe 100644
--- a/watcher/tests/decision_engine/model/data/scenario_6_with_2_nodes.xml
+++ b/watcher/tests/decision_engine/model/data/scenario_6_with_2_nodes.xml
@@ -1,10 +1,10 @@
 <ModelRoot>
   <ComputeNode human_id="" uuid="Node_0" status="enabled" state="up" id="0" hostname="hostname_0" vcpus="40" disk="250" disk_capacity="250" memory="132">
-    <Instance state="active" human_id="" uuid="73b09e16-35b7-4922-804e-e8f5d9b740fc" vcpus="10" disk="20" disk_capacity="20" memory="32" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-    <Instance state="active" human_id="" uuid="INSTANCE_1" vcpus="10" disk="20" disk_capacity="20" memory="32" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="False" state="active" human_id="" uuid="73b09e16-35b7-4922-804e-e8f5d9b740fc" vcpus="10" disk="20" disk_capacity="20" memory="32" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_1" vcpus="10" disk="20" disk_capacity="20" memory="32" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
   </ComputeNode>
   <ComputeNode human_id="" uuid="Node_1" status="enabled" state="up" id="1" hostname="hostname_1" vcpus="40" disk="250" disk_capacity="250" memory="132">
-    <Instance state="active" human_id="" uuid="INSTANCE_3" vcpus="10" disk="20" disk_capacity="20" memory="32" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-    <Instance state="active" human_id="" uuid="INSTANCE_4" vcpus="10" disk="20" disk_capacity="20" memory="32" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_3" vcpus="10" disk="20" disk_capacity="20" memory="32" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_4" vcpus="10" disk="20" disk_capacity="20" memory="32" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
   </ComputeNode>
 </ModelRoot>
diff --git a/watcher/tests/decision_engine/model/data/scenario_7_with_2_nodes.xml b/watcher/tests/decision_engine/model/data/scenario_7_with_2_nodes.xml
index cf86c00e2..2e9e2a134 100644
--- a/watcher/tests/decision_engine/model/data/scenario_7_with_2_nodes.xml
+++ b/watcher/tests/decision_engine/model/data/scenario_7_with_2_nodes.xml
@@ -1,10 +1,10 @@
 <ModelRoot>
   <ComputeNode human_id="" uuid="Node_0" status="enabled" state="up" id="0" hostname="hostname_0" vcpus="50" disk="250" disk_capacity="250" memory="132">
-    <Instance state="active" human_id="" uuid="73b09e16-35b7-4922-804e-e8f5d9b740fc" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}, "watcher-priority": "8"}'/>
-    <Instance state="active" human_id="" uuid="cae81432-1631-4d4e-b29c-6f3acdcde906" vcpus="15" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}, "watcher-priority": "4"}'/>
+    <Instance watcher_exclude="False" state="active" human_id="" uuid="73b09e16-35b7-4922-804e-e8f5d9b740fc" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}, "watcher-priority": "8"}'/>
+    <Instance watcher_exclude="False" state="active" human_id="" uuid="cae81432-1631-4d4e-b29c-6f3acdcde906" vcpus="15" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}, "watcher-priority": "4"}'/>
   </ComputeNode>
   <ComputeNode human_id="" uuid="Node_1" status="enabled" state="up" id="1" hostname="hostname_1" vcpus="50" disk="250" disk_capacity="250" memory="132">
-    <Instance state="active" human_id="" uuid="INSTANCE_3" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}, "watcher-priority": "1"}'/>
-    <Instance state="active" human_id="" uuid="INSTANCE_4" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}, "watcher-priority": "9"}'/>
+    <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_3" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}, "watcher-priority": "1"}'/>
+    <Instance watcher_exclude="False" state="active" human_id="" uuid="INSTANCE_4" vcpus="10" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}, "watcher-priority": "9"}'/>
   </ComputeNode>
 </ModelRoot>
diff --git a/watcher/tests/decision_engine/model/data/scenario_8_with_4_nodes.xml b/watcher/tests/decision_engine/model/data/scenario_8_with_4_nodes.xml
index a646c6e90..dac56c1bf 100644
--- a/watcher/tests/decision_engine/model/data/scenario_8_with_4_nodes.xml
+++ b/watcher/tests/decision_engine/model/data/scenario_8_with_4_nodes.xml
@@ -1,16 +1,16 @@
 <ModelRoot>
   <ComputeNode hostname="hostname_0" uuid="Node_0" id="0" state="up" human_id="" status="enabled" vcpus="16" disk="250" disk_capacity="250" memory="64">
-    <Instance human_id="" state="active" uuid="INSTANCE_0" vcpus="2" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-    <Instance human_id="" state="active" uuid="INSTANCE_1" vcpus="2" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-    <Instance human_id="" state="active" uuid="INSTANCE_2" vcpus="2" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="False" human_id="" state="active" uuid="INSTANCE_0" vcpus="2" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="False" human_id="" state="active" uuid="INSTANCE_1" vcpus="2" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="False" human_id="" state="active" uuid="INSTANCE_2" vcpus="2" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
   </ComputeNode>
   <ComputeNode hostname="hostname_1" uuid="Node_1" id="1" state="up" human_id="" status="enabled" vcpus="16" disk="250" disk_capacity="250" memory="64">
-    <Instance human_id="" state="active" uuid="INSTANCE_3" vcpus="2" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="False" human_id="" state="active" uuid="INSTANCE_3" vcpus="2" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
   </ComputeNode>
   <ComputeNode hostname="hostname_2" uuid="Node_2" id="2" state="up" human_id="" status="enabled" vcpus="16" disk="250" disk_capacity="250" memory="64">
-    <Instance human_id="" state="active" uuid="INSTANCE_4" vcpus="2" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="False" human_id="" state="active" uuid="INSTANCE_4" vcpus="2" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
   </ComputeNode>
   <ComputeNode hostname="hostname_3" uuid="Node_3" id="3" state="up" human_id="" status="enabled" vcpus="16" disk="250" disk_capacity="250" memory="64">
-    <Instance human_id="" state="active" uuid="INSTANCE_5" vcpus="2" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="False" human_id="" state="active" uuid="INSTANCE_5" vcpus="2" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
   </ComputeNode>
 </ModelRoot>
diff --git a/watcher/tests/decision_engine/model/data/scenario_9_with_3_active_plus_1_disabled_nodes.xml b/watcher/tests/decision_engine/model/data/scenario_9_with_3_active_plus_1_disabled_nodes.xml
index 488f1c7f0..c66239edb 100644
--- a/watcher/tests/decision_engine/model/data/scenario_9_with_3_active_plus_1_disabled_nodes.xml
+++ b/watcher/tests/decision_engine/model/data/scenario_9_with_3_active_plus_1_disabled_nodes.xml
@@ -1,16 +1,16 @@
 <ModelRoot>
   <ComputeNode hostname="hostname_0" uuid="Node_0" id="0" state="up" human_id="" status="enabled" vcpus="16" disk="250" disk_capacity="250" memory="64">
-    <Instance human_id="" state="active" uuid="INSTANCE_0" vcpus="2" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-    <Instance human_id="" state="active" uuid="INSTANCE_1" vcpus="2" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
-    <Instance human_id="" state="active" uuid="INSTANCE_2" vcpus="2" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="False" human_id="" state="active" uuid="INSTANCE_0" vcpus="2" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="False" human_id="" state="active" uuid="INSTANCE_1" vcpus="2" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="False" human_id="" state="active" uuid="INSTANCE_2" vcpus="2" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
   </ComputeNode>
   <ComputeNode hostname="hostname_1" uuid="Node_1" id="1" state="up" human_id="" status="enabled" vcpus="16" disk="250" disk_capacity="250" memory="64">
-    <Instance human_id="" state="active" uuid="INSTANCE_3" vcpus="2" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="False" human_id="" state="active" uuid="INSTANCE_3" vcpus="2" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
   </ComputeNode>
   <ComputeNode hostname="hostname_2" uuid="Node_2" id="2" state="up" human_id="" status="enabled" vcpus="16" disk="250" disk_capacity="250" memory="64">
-    <Instance human_id="" state="active" uuid="INSTANCE_4" vcpus="2" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="False" human_id="" state="active" uuid="INSTANCE_4" vcpus="2" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
   </ComputeNode>
   <ComputeNode hostname="hostname_3" uuid="Node_3" id="3" state="up" human_id="" status="disabled" disabled_reason='watcher_disabled' vcpus="16" disk="250" disk_capacity="250" memory="64">
-    <Instance human_id="" state="active" uuid="INSTANCE_5" vcpus="2" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
+    <Instance watcher_exclude="False" human_id="" state="active" uuid="INSTANCE_5" vcpus="2" disk="20" disk_capacity="20" memory="2" metadata='{"optimize": true,"top": "floor", "nested": {"x": "y"}}'/>
   </ComputeNode>
 </ModelRoot>
diff --git a/watcher/tests/decision_engine/model/faker_cluster_state.py b/watcher/tests/decision_engine/model/faker_cluster_state.py
index 043d4e11b..0e05714dc 100644
--- a/watcher/tests/decision_engine/model/faker_cluster_state.py
+++ b/watcher/tests/decision_engine/model/faker_cluster_state.py
@@ -121,6 +121,9 @@ class FakerModelCollector(base.BaseClusterDataModelCollector):
     def generate_scenario_1_with_1_node_unavailable(self):
         return self.load_model('scenario_1_with_1_node_unavailable.xml')
 
+    def generate_scenario_1_with_all_instances_exclude(self):
+        return self.load_model('scenario_1_with_all_instances_exclude.xml')
+
     def generate_scenario_3_with_2_nodes(self):
         return self.load_model('scenario_3_with_2_nodes.xml')
 
diff --git a/watcher/tests/decision_engine/strategy/strategies/test_workload_stabilization.py b/watcher/tests/decision_engine/strategy/strategies/test_workload_stabilization.py
index f3be6c7ed..961edc92e 100644
--- a/watcher/tests/decision_engine/strategy/strategies/test_workload_stabilization.py
+++ b/watcher/tests/decision_engine/strategy/strategies/test_workload_stabilization.py
@@ -195,6 +195,15 @@ class TestWorkloadStabilization(base.TestCase):
             10,
             len(self.strategy.simulate_migrations(self.hosts_load_assert)))
 
+    def test_simulate_migrations_with_all_instances_exclude(self):
+        model = \
+            self.fake_cluster.generate_scenario_1_with_all_instances_exclude()
+        self.m_model.return_value = model
+        self.strategy.host_choice = 'fullsearch'
+        self.assertEqual(
+            0,
+            len(self.strategy.simulate_migrations(self.hosts_load_assert)))
+
     def test_check_threshold(self):
         self.m_model.return_value = self.fake_cluster.generate_scenario_1()
         self.strategy.thresholds = {'cpu_util': 0.001, 'memory.resident': 0.2}