Preparing installations and updates for software systems

The present invention extends to methods, systems, and computer program products for preparing installations and updates for software systems. Aspects of the invention include creating software update packages that are selectable to automatically install essentially any number of code changes for any number of software components to update a software system (e.g., a cloud appliance). In one aspect, a software update package includes: references to code changes for a plurality of software components and references to installation artifacts for installing the code changes, and also indicates interdependencies between the plurality of software components. In another aspect, a software update package includes references to validation code for validating that a software update package transitioned a software system to a goal state. In a further aspect, a software update package expressly indicates that installation artifact references for different installation artifacts are to be processed during different passes