From Fedora Project Wiki

Appliance Building Tools

Appliances are pre-installed and pre-configured system images. This package includes tools and meta-data that make it easier for ISVs, developers, OEMS, etc. to create and deploy virtual appliances. The two components of this feature are the ACT (Appliance Creation Tool) and the AOS (The Appliance Operating System). Install the appliance-tools package with Add/Remove Software or yum.

Appliance Creation Tool

The Appliance Creation Tool is a tool that creates Appliance Images from a kickstart file. This tool uses the Live CD creator API as well as patches to the Live CD API that allow for the creation of multi-partitioned disk images. These disk images can then be booted in a virtual container such as Xen, KVM, and VMware. This tool is included in the appliance-tools package. This package contains tools for building appliance images on Fedora based systems including derived distributions such as RHEL, CentOS, and others.

Appliance Operating System

The Appliance Operating System is a scaled down version of Fedora with a small footprint. It contains only the packages necessary to run an appliance. The hardware supported by this spin of Fedora would be limited, primarily focusing on virtual containers such as KVM and VMware. The goal is to create a base on which developers can build their applications, only pulling in packages that their software requires.

Resources -- Appliance Tool Project Site