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Blockquote I am not certain - if I am permitted to have cinder_host setup on multiple instances

Sure you can install and use Cinder on multiple compute nodes but there's really no need since your VM storage, by default, uses the local disk anyway - just as they would with a Cinder volume. Cinder solves the ephemeral storage issue but that leaves you with compute nodes with potentially stagnant volumes. Best to put Cinder on it's own node. Or use local file storage for your guests. Assuming your guests can tolerate storage going away when/once the guest is destroyed.