# How SDKs work > Understand Fern's SDK generation process. Cloud-based workflow transforms API specifications into production-ready client libraries automatically. Fern combines your API specifications with generator configurations and custom code to produce SDKs in multiple languages. By default, SDK generation runs on Fern's managed cloud infrastructure. Alternatively, [you can run SDK generation on your own infrastructure](/sdks/deep-dives/self-hosted) to meet specific security or compliance requirements. ## Generation workflow Before generating SDKs, you'll configure your `fern/` folder with SDK generators specified in `generators.yml` and connect your API specification. You can also add custom code, tests, and other configuration as needed. Running `fern generate` kicks off the cloud generation process and involves a few key steps: Fern allocates compute resources and pulls the appropriate Docker image for your specified generator version. The Docker container executes the generation logic and produces your SDK's core files (models, client code, API methods). Fern verifies your organization registration to ensure the complete SDK can be generated. Without organization verification, only partial SDK files (core code without package metadata) are produced. Fern completes the SDK by adding package distribution files such as `pyproject.toml`, `package.json`, README, and any dependencies. Fern publishes or saves the complete SDK to your configured location (local filesystem, GitHub repository, package registry). After publication, developers can use your SDKs to integrate with your APIs. ```mermaid sequenceDiagram autonumber participant Dev as Developer participant Fern as Fern participant Docker as Docker Container participant Dest as Output Destination Dev->>Fern: fern generate Fern->>Fern: Allocate cloud compute Fern->>Docker: Pull & run generator image Docker->>Docker: Generate core SDK files Docker->>Fern: Return partial SDK Fern->>Fern: Verify organization Fern->>Fern: Add package metadata Fern->>Dest: Output complete SDK ```