diff --git a/test/unit/engine_target.js b/test/unit/engine_target.js
index 986038774..0b628c1b3 100644
--- a/test/unit/engine_target.js
+++ b/test/unit/engine_target.js
@@ -4,6 +4,7 @@ const Variable = require('../../src/engine/variable');
 const adapter = require('../../src/engine/adapter');
 const Runtime = require('../../src/engine/runtime');
 const events = require('../fixtures/events.json');
+const Cloud = require('../../src/io/cloud');
 
 test('spec', t => {
     const target = new Target();
@@ -71,6 +72,58 @@ test('createListVariable creates a list', t => {
     t.end();
 });
 
+test('createVariable calls cloud io device\'s requestCreateCloudVariable', t => {
+    const runtime = new Runtime();
+    // Mock the requestCreateCloudVariable function
+    let requestCreateCloudWasCalled = false;
+    runtime.ioDevices.cloud.requestCreateCloudVariable = () => {
+        requestCreateCloudWasCalled = true;
+    };
+
+    const target = new Target(runtime);
+    target.isStage = true;
+    target.createVariable('foo', 'bar', Variable.SCALAR_TYPE, true /* isCloud */);
+
+    const variables = target.variables;
+    t.equal(Object.keys(variables).length, 1);
+    const variable = variables[Object.keys(variables)[0]];
+    t.equal(variable.id, 'foo');
+    t.equal(variable.name, 'bar');
+    t.equal(variable.type, Variable.SCALAR_TYPE);
+    t.equal(variable.value, 0);
+    // isCloud flag doesn't get set by the target createVariable function
+    t.equal(variable.isCloud, false);
+    t.equal(requestCreateCloudWasCalled, true);
+
+    t.end();
+});
+
+test('createVariable does not call cloud io device\'s requestCreateCloudVariable if target is not stage', t => {
+    const runtime = new Runtime();
+    // Mock the requestCreateCloudVariable function
+    let requestCreateCloudWasCalled = false;
+    runtime.ioDevices.cloud.requestCreateCloudVariable = () => {
+        requestCreateCloudWasCalled = true;
+    };
+
+    const target = new Target(runtime);
+    target.isStage = false;
+    target.createVariable('foo', 'bar', Variable.SCALAR_TYPE, true /* isCloud */);
+
+    const variables = target.variables;
+    t.equal(Object.keys(variables).length, 1);
+    const variable = variables[Object.keys(variables)[0]];
+    t.equal(variable.id, 'foo');
+    t.equal(variable.name, 'bar');
+    t.equal(variable.type, Variable.SCALAR_TYPE);
+    t.equal(variable.value, 0);
+    // isCloud flag doesn't get set by the target createVariable function
+    t.equal(variable.isCloud, false);
+    t.equal(requestCreateCloudWasCalled, false);
+
+    t.end();
+});
+
 test('createVariable throws when given invalid type', t => {
     const target = new Target();
     t.throws(
diff --git a/test/unit/io_cloud.js b/test/unit/io_cloud.js
index d7f2c7843..0991a4f3d 100644
--- a/test/unit/io_cloud.js
+++ b/test/unit/io_cloud.js
@@ -2,14 +2,18 @@ const test = require('tap').test;
 const Cloud = require('../../src/io/cloud');
 const Target = require('../../src/engine/target');
 const Variable = require('../../src/engine/variable');
+const Runtime = require('../../src/engine/runtime');
 
 test('spec', t => {
-    const cloud = new Cloud();
+    const runtime = new Runtime();
+    const cloud = new Cloud(runtime);
 
     t.type(cloud, 'object');
     t.type(cloud.postData, 'function');
     t.type(cloud.requestUpdateVariable, 'function');
     t.type(cloud.updateCloudVariable, 'function');
+    t.type(cloud.requestCreateCloudVariable, 'function');
+    t.type(cloud.createCloudVariable, 'function');
     t.type(cloud.setProvider, 'function');
     t.type(cloud.setStage, 'function');
     t.type(cloud.clear, 'function');
@@ -17,7 +21,8 @@ test('spec', t => {
 });
 
 test('stage and provider are null initially', t => {
-    const cloud = new Cloud();
+    const runtime = new Runtime();
+    const cloud = new Cloud(runtime);
 
     t.strictEquals(cloud.provider, null);
     t.strictEquals(cloud.stage, null);
@@ -25,7 +30,8 @@ test('stage and provider are null initially', t => {
 });
 
 test('setProvider sets the provider', t => {
-    const cloud = new Cloud();
+    const runtime = new Runtime();
+    const cloud = new Cloud(runtime);
 
     const provider = {
         foo: 'a fake provider'
@@ -37,7 +43,7 @@ test('setProvider sets the provider', t => {
     t.end();
 });
 
-test('postData updates the variable', t => {
+test('postData update message updates the variable', t => {
     const stage = new Target();
     const fooVar = new Variable(
         'a fake var id',
@@ -49,7 +55,8 @@ test('postData updates the variable', t => {
 
     t.strictEquals(fooVar.value, 0);
 
-    const cloud = new Cloud();
+    const runtime = new Runtime();
+    const cloud = new Cloud(runtime);
     cloud.setStage(stage);
     cloud.postData({varUpdate: {
         name: 'foo',
@@ -59,6 +66,30 @@ test('postData updates the variable', t => {
     t.end();
 });
 
+test('postData create message sets isCloud flag on the variable and updates runtime cloud limit', t => {
+    const stage = new Target();
+    const fooVar = new Variable(
+        'a fake var id',
+        'foo',
+        Variable.SCALAR_TYPE,
+        false /* isCloud */
+    );
+    stage.variables[fooVar.id] = fooVar;
+
+    t.strictEquals(fooVar.value, 0);
+    t.strictEquals(fooVar.isCloud, false);
+
+    const runtime = new Runtime();
+    const cloud = new Cloud(runtime);
+    cloud.setStage(stage);
+    cloud.postData({varCreate: {
+        name: 'foo'
+    }});
+    t.strictEquals(fooVar.isCloud, true);
+    t.strictEquals(runtime.hasCloudData(), true);
+    t.end();
+});
+
 test('requestUpdateVariable calls provider\'s updateVariable function', t => {
     let updateVariableCalled = false;
     let mockVarName = '';
@@ -74,7 +105,8 @@ test('requestUpdateVariable calls provider\'s updateVariable function', t => {
         updateVariable: mockUpdateVariable
     };
 
-    const cloud = new Cloud();
+    const runtime = new Runtime();
+    const cloud = new Cloud(runtime);
     cloud.setProvider(provider);
     cloud.requestUpdateVariable('foo', 3);
     t.equals(updateVariableCalled, true);
@@ -82,3 +114,31 @@ test('requestUpdateVariable calls provider\'s updateVariable function', t => {
     t.strictEquals(mockVarValue, 3);
     t.end();
 });
+
+test('requestCreateCloudVariable calls provider\'s createVariable function', t => {
+    let createVariableCalled = false;
+    const mockVariable = new Variable('a var id', 'my var', Variable.SCALAR_TYPE, false);
+    let mockVarName;
+    let mockVarValue;
+    const mockCreateVariable = (name, value) => {
+        createVariableCalled = true;
+        mockVarName = name;
+        mockVarValue = value;
+        return;
+    };
+
+    const provider = {
+        createVariable: mockCreateVariable
+    };
+
+    const runtime = new Runtime();
+    const cloud = new Cloud(runtime);
+    cloud.setProvider(provider);
+    cloud.requestCreateCloudVariable(mockVariable);
+    t.equals(createVariableCalled, true);
+    t.strictEquals(mockVarName, 'my var');
+    t.strictEquals(mockVarValue, 0);
+    // Calling requestCreateCloudVariable does not set isCloud flag on variable
+    t.strictEquals(mockVariable.isCloud, false);
+    t.end();
+});