Some embodiments of the invention introduce cloud template awareness in the service policy framework. Some embodiments provide one or more service rule processing engines that natively support (1) template-specific dynamic groups and template-specific rules, and (2) dynamic security tag concepts. A service rule processing engine of some embodiments natively supports template-specific dynamic groups and rules as it can directly process service rules that are defined in terms of dynamic component groups, template identifiers, template instance identifiers, and/or template match criteria. Examples of such services can include any kind of middlebox services, such as firewalls, load balancers, network address translators, intrusion detection systems, intrusion prevention systems, etc.