Methods, computing systems and computer program products implement embodiments of the present invention that include initializing a plurality of first layer software defined storage (SDS) clusters, each of the first layer SDS clusters including multiple storage nodes executing in separate independent virtual machines on respective separate independent servers. A second layer SDS cluster including a combination of the first layer SDS clusters is defined, and using a distributed management application, the second layer SDS cluster is managed, the distributed management application including multiple management nodes executing on all of the servers. In one embodiment, each of the storage nodes executes within a separate independent virtual machine, and each of the virtual machines executes a given management node. In another embodiment, each of the storage nodes executes within a separate independent first virtual machine, and each server includes a second virtual machine that executes a given management node.