diff --git a/hack/images/jinja2/README.md b/hack/images/jinja2/README.md
index c08c0a4f3..4b2ece47e 100644
--- a/hack/images/jinja2/README.md
+++ b/hack/images/jinja2/README.md
@@ -59,6 +59,14 @@ postgres
 Prefix for db was removed. This is Jinja limitation. It shouldn't be a big problem as long
 as there is no need to render the template twice with the same prefix.
 
+### Configuration
+
+There is a possibility of pre-processing data by setting options in the configuration file.
+List of supported operations:
+| Name                      | Default      | Description                                                                                        |
+| ------------------------- | ------------ | ---------------------------------------------------------------------------------------------------|
+| prefix                    | ""           | Adds a prefix to inputted data. The data will be accessible using the set prefix.                  |
+| unpackValue               | False        | If the `value` prefix is set in the inputted data then the data will be unpacked from that prefix. |
 
 ## Prerequisites
 
diff --git a/hack/images/jinja2/jinja2-cli/jinja2cli/cli.py b/hack/images/jinja2/jinja2-cli/jinja2cli/cli.py
index 3cfc17925..56bf36bc3 100644
--- a/hack/images/jinja2/jinja2-cli/jinja2cli/cli.py
+++ b/hack/images/jinja2/jinja2-cli/jinja2cli/cli.py
@@ -312,15 +312,13 @@ def cli(opts, args, config):  # noqa: C901
 
         out = codecs.getwriter("utf8")(out)
 
-    if config.get("prefix") is not None and len(parsed_data) != 0:
-        parsed_data = {config["prefix"]: parsed_data}
+    parsed_data = preprocessing_data(config, parsed_data)
 
     template_path = os.path.abspath(template_path)
     out.write(render(template_path, parsed_data, extensions, opts.filters, opts.strict))
     out.flush()
     return 0
 
-
 def parse_kv_string(pairs):
     dict_ = {}
     for pair in pairs:
@@ -329,6 +327,17 @@ def parse_kv_string(pairs):
     return dict_
 
 
+def preprocessing_data(config, data):
+    '''Return preprocessed data based on the applied configuration.'''
+
+    if config.get("unpackValue") is True and len(data) != 0 and "value" in data:
+        data = data.get("value", {})
+
+    if config.get("prefix") is not None and len(data) != 0:
+        data = {config["prefix"]: data}
+
+    return data
+
 class LazyHelpOption(Option):
     "An Option class that resolves help from a callable"
 
diff --git a/hack/images/jinja2/jinja2-cli/tests/test_jinja2cli.py b/hack/images/jinja2/jinja2-cli/tests/test_jinja2cli.py
index f2534176d..043f3bb9c 100644
--- a/hack/images/jinja2/jinja2-cli/tests/test_jinja2cli.py
+++ b/hack/images/jinja2/jinja2-cli/tests/test_jinja2cli.py
@@ -12,76 +12,82 @@
 
 
 @dataclass
-class TestCase:
+class RenderTestCase:
     name: str
     template: str
     data: typing.Dict[str, typing.Any]
     result: str
 
+@dataclass
+class PreprocessingDataTestCase:
+    name: str
+    config: typing.Dict[str, typing.Any]
+    data: typing.Dict[str, typing.Any]
+    result: typing.Dict[str, typing.Any]
 
 render_testcases = [
-    TestCase(name="empty", template="", data={}, result=""),
-    TestCase(
+    RenderTestCase(name="empty", template="", data={}, result=""),
+    RenderTestCase(
         name="simple",
         template="<@ title @>",
         data={"title": b"\xc3\xb8".decode("utf8")},
         result=b"\xc3\xb8".decode("utf8"),
     ),
-    TestCase(
+    RenderTestCase(
         name="prefix",
         template="<@ input.key @>",
         data={"input": {"key": "value"}},
         result="value",
     ),
-    TestCase(
+    RenderTestCase(
         name="two prefixes but one provided",
         template="<@ input.key @>/<@ additionalinput.key @>",
         data={"input": {"key": "value"}},
         result="value/<@ additionalinput.key @>",
     ),
-    TestCase(
+    RenderTestCase(
         name="missing prefix",
         template="<@ input.key @>",
         data={},
         result="<@ input.key @>",
     ),
-    TestCase(
+    RenderTestCase(
         name="items before attrs",
         template="<@ input.values.key @>",
         data={"input": {"values": {"key": "value"}}},
         result="value",
     ),
-    TestCase(
+    RenderTestCase(
         name="attrs still working",
         template="<@ input.values() @>",
         data={"input": {}},
         result="dict_values([])",
     ),
-    TestCase(
+    RenderTestCase(
         name="key with dot",
         template="<@ input['foo.bar'] @>",
         data={"input": {"foo.bar": "value"}},
         result="value",
     ),
-    TestCase(
+    RenderTestCase(
         name="missing key with dot",
         template='<@ input["foo.bar"] @>',
         data={},
         result='<@ input["foo.bar"] @>',
     ),
-    TestCase(
+    RenderTestCase(
         name="use default value",
         template='<@ input["foo.bar"] | default("hello") @>',
         data={},
         result="hello",
     ),
-    TestCase(
+    RenderTestCase(
         name="multiple dotted values",
         template='<@ input.key.key["foo.bar/baz"] | default("hello") @>',
         data={},
         result="hello",
     ),
-    TestCase(
+    RenderTestCase(
         name="multiline strings",
         template="""<@ input.key.key["foo.bar/baz"] | default('hello
 hello') @>""",
@@ -100,6 +106,33 @@ def test_render(tmp_path, case):
     assert output == case.result
 
 
+preprocessing_data_testcases = [
+    PreprocessingDataTestCase(
+        name="set prefix in the config should prefix the data",
+        config={"prefix": "testprefix"},
+        data = {"test": "test"},
+        result={"testprefix": {"test": "test"}}
+    ),
+    PreprocessingDataTestCase(
+        name="set unpackValue in the config should remove the value prefix",
+        config={"unpackValue": True},
+        data = {"value": {"test": "test"}},
+        result={"test": "test"}
+    ),
+    PreprocessingDataTestCase(
+        name="set unpackValue and prefix should output correct results",
+        config={"prefix": "testprefix", "unpackValue": True},
+        data = {"value": {"test": "test"}},
+        result={"testprefix": {"test": "test"}}
+    )
+]
+
+@pytest.mark.parametrize("case", preprocessing_data_testcases)
+def test_preprocessing_data(case):
+    output = cli.preprocessing_data(case.config,case.data)
+    assert output == case.result
+
+
 def test_random_password(tmp_path):
     random_pass_path = tmp_path / "random.template"
     random_pass_path.write_text("<@ random_password(length=4) @>")
diff --git a/hack/images/merger/README.md b/hack/images/merger/README.md
index b00dcb834..de71eee8e 100755
--- a/hack/images/merger/README.md
+++ b/hack/images/merger/README.md
@@ -4,8 +4,7 @@
 
 This folder contains the Docker image which merges multiple input YAML files into a single one.
 
-The Docker image contains the `merger.sh` helper script. The script is an entrypoint of the image, and it is used to prefix and merge all YAML files found in `$SRC` directory.
-Each file is prefixed with a file name without extension.
+The Docker image contains the `merger.sh` helper script. The script is an entrypoint of the image, and it is used to prefix and merge all YAML files found in `$SRC` directory. Additionally, if the YAML file contains the `value` key, then it is unpacked from that key. Each file is prefixed with a file name without extension.
 
 ## Installation
 
diff --git a/hack/images/merger/merger.sh b/hack/images/merger/merger.sh
index 321fcf3b2..ef312934c 100755
--- a/hack/images/merger/merger.sh
+++ b/hack/images/merger/merger.sh
@@ -3,10 +3,16 @@
 SRC=${SRC:-"/yamls"}
 OUT=${OUT:-"/merged.yaml"}
 
-# prefix each file with its filename
 for filename in "${SRC}"/*; do
   filename=$(basename -- "$filename")
   prefix="${filename%.*}"
+
+  # remove value key if exists
+  if [[ $(yq e 'has("value")' "${SRC}"/"${filename}") == "true" ]]; then
+    yq e '.value' -i "${SRC}"/"${filename}"
+  fi 
+
+  # prefix each file with its filename
   yq e -i "{\"${prefix}\": . }" "${SRC}"/"${filename}"
 done
 
diff --git a/hub-js/graphql/local/schema.graphql b/hub-js/graphql/local/schema.graphql
index db6c754db..6892ede2b 100644
--- a/hub-js/graphql/local/schema.graphql
+++ b/hub-js/graphql/local/schema.graphql
@@ -123,7 +123,7 @@ type TypeInstanceResourceVersionSpec {
                 abstract: backendRef.abstract,
                 fetchInput: {
                    typeInstance: { resourceVersion: rev.resourceVersion, id: ti.id },
-                   backend: { context: backendCtx.context, id: backendRef.id}
+                   backend: { context: apoc.convert.fromJsonMap(backendCtx.context), id: backendRef.id}
                 }
               } AS value
               RETURN value
diff --git a/hub-js/src/local/resolver/mutation/delete-type-instance.ts b/hub-js/src/local/resolver/mutation/delete-type-instance.ts
index 7cec7e530..7158947af 100644
--- a/hub-js/src/local/resolver/mutation/delete-type-instance.ts
+++ b/hub-js/src/local/resolver/mutation/delete-type-instance.ts
@@ -58,7 +58,7 @@ export async function deleteTypeInstance(
 
             // NOTE: Need to be preserved with 'WITH' statement, otherwise we won't be able
             // to access node's properties after 'DETACH DELETE' statement.
-            WITH *, {id: ti.id, backend: { id: backendRef.id, context: specBackend.context, abstract: backendRef.abstract}} as out
+            WITH *, {id: ti.id, backend: { id: backendRef.id, context: apoc.convert.fromJsonMap(specBackend.context), abstract: backendRef.abstract}} as out
             DETACH DELETE ti, metadata, spec, tirs, specBackend
 
             WITH *
diff --git a/hub-js/src/local/resolver/mutation/lock-type-instances.ts b/hub-js/src/local/resolver/mutation/lock-type-instances.ts
index fbddc8b6c..37d318635 100644
--- a/hub-js/src/local/resolver/mutation/lock-type-instances.ts
+++ b/hub-js/src/local/resolver/mutation/lock-type-instances.ts
@@ -180,7 +180,7 @@ export async function getTypeInstanceStoredExternally(
 
            WITH {
                 typeInstanceId: ti.id,
-                backend: { context: backendCtx.context, id: backendRef.id, abstract: backendRef.abstract}
+                backend: { context: apoc.convert.fromJsonMap(backendCtx.context), id: backendRef.id, abstract: backendRef.abstract}
               } AS value
            RETURN value
         `,
diff --git a/hub-js/src/local/storage/service.ts b/hub-js/src/local/storage/service.ts
index 42fa1fb5b..9e031a92e 100644
--- a/hub-js/src/local/storage/service.ts
+++ b/hub-js/src/local/storage/service.ts
@@ -20,12 +20,6 @@ import {
 import { JSONSchemaType } from "ajv/lib/types/json-schema";
 import { TextEncoder } from "util";
 
-// TODO(https://github.com/capactio/capact/issues/634):
-// Represents the fake storage backend URL that should be ignored
-// as the backend server is not deployed.
-// It should be removed after a real backend is used in `test/e2e/action_test.go` scenarios.
-export const FAKE_TEST_URL = "e2e-test-backend-mock-url:50051";
-
 type StorageClient = Client<typeof StorageBackendDefinition>;
 
 interface BackendContainer {
@@ -131,10 +125,6 @@ export default class DelegatedStorageService {
         backendId: input.backend.id,
       });
       const backend = await this.getBackendContainer(input.backend.id);
-      if (!backend?.client) {
-        // TODO: remove after using a real backend in e2e tests.
-        continue;
-      }
 
       const validateErr = this.validateInput(input, backend.validateSpec);
       if (validateErr) {
@@ -179,11 +169,6 @@ export default class DelegatedStorageService {
         backendId: input.backend.id,
       });
       const backend = await this.getBackendContainer(input.backend.id);
-      if (!backend?.client) {
-        // TODO(https://github.com/capactio/capact/issues/634): remove after using a real backend in e2e tests.
-        continue;
-      }
-
       const validateErr = this.validateInput(input, backend.validateSpec);
       if (validateErr) {
         throw Error(
@@ -220,16 +205,6 @@ export default class DelegatedStorageService {
         backendId: input.backend.id,
       });
       const backend = await this.getBackendContainer(input.backend.id);
-      if (!backend?.client) {
-        // TODO(https://github.com/capactio/capact/issues/634): remove after using a real backend in e2e tests.
-        result = {
-          ...result,
-          [input.typeInstance.id]: {
-            key: input.backend.id,
-          },
-        };
-        continue;
-      }
 
       const validateErr = this.validateInput(input, backend.validateSpec);
       if (validateErr) {
@@ -274,10 +249,6 @@ export default class DelegatedStorageService {
         backendId: input.backend.id,
       });
       const backend = await this.getBackendContainer(input.backend.id);
-      if (!backend?.client) {
-        // TODO(https://github.com/capactio/capact/issues/634): remove after using a real backend in e2e tests.
-        continue;
-      }
 
       const validateErr = this.validateInput(input, backend.validateSpec);
       if (validateErr) {
@@ -307,10 +278,6 @@ export default class DelegatedStorageService {
         backendId: input.backend.id,
       });
       const backend = await this.getBackendContainer(input.backend.id);
-      if (!backend?.client) {
-        // TODO(https://github.com/capactio/capact/issues/634): remove after using a real backend in e2e tests.
-        continue;
-      }
 
       const validateErr = this.validateInput(input, backend.validateSpec);
       if (validateErr) {
@@ -341,10 +308,6 @@ export default class DelegatedStorageService {
         backendId: input.backend.id,
       });
       const backend = await this.getBackendContainer(input.backend.id);
-      if (!backend?.client) {
-        // TODO(https://github.com/capactio/capact/issues/634): remove after using a real backend in e2e tests.
-        continue;
-      }
 
       const validateErr = this.validateInput(input, backend.validateSpec);
       if (validateErr) {
@@ -408,19 +371,9 @@ export default class DelegatedStorageService {
     }
   }
 
-  private async getBackendContainer(
-    id: string
-  ): Promise<BackendContainer | undefined> {
+  private async getBackendContainer(id: string): Promise<BackendContainer> {
     if (!this.registeredClients.has(id)) {
       const spec = await this.storageInstanceDetailsFetcher(id);
-      if (spec.url === FAKE_TEST_URL) {
-        logger.debug(
-          "Skipping a real call as backend was classified as a fake one"
-        );
-        // TODO(https://github.com/capactio/capact/issues/634): remove after using a real backend in e2e tests.
-        return undefined;
-      }
-
       logger.debug("Initialize gRPC BackendContainer", {
         backend: id,
         url: spec.url,
@@ -451,7 +404,7 @@ export default class DelegatedStorageService {
       this.registeredClients.set(id, { client, validateSpec: storageSpec });
     }
 
-    return this.registeredClients.get(id);
+    return this.registeredClients.get(id) as BackendContainer;
   }
 
   private static convertToJSONIfObject(val: unknown): string | undefined {
diff --git a/internal/cli/testing/storage_backend.go b/internal/cli/testing/storage_backend.go
index cea21cfbb..6c27a2d73 100644
--- a/internal/cli/testing/storage_backend.go
+++ b/internal/cli/testing/storage_backend.go
@@ -2,7 +2,6 @@ package testing
 
 import (
 	"context"
-	"encoding/json"
 
 	"capact.io/capact/internal/logger"
 	"capact.io/capact/internal/ptr"
@@ -44,9 +43,9 @@ const testStorageTypeContextSchema = `
 `
 
 type typeInstanceValue struct {
-	URL           string      `json:"url"`
-	AcceptValue   bool        `json:"acceptValue"`
-	ContextSchema interface{} `json:"contextSchema"`
+	URL           string `json:"url"`
+	AcceptValue   bool   `json:"acceptValue"`
+	ContextSchema string `json:"contextSchema"`
 }
 
 // StorageBackendRegister provides functionality to produce and upload test storage backend TypeInstance.
@@ -80,12 +79,6 @@ func NewStorageBackendRegister() (*StorageBackendRegister, error) {
 
 // RegisterTypeInstances produces and uploads TypeInstances which describe Test storage backend.
 func (i *StorageBackendRegister) RegisterTypeInstances(ctx context.Context) error {
-	var contextSchema interface{}
-	err := json.Unmarshal([]byte(testStorageTypeContextSchema), &contextSchema)
-	if err != nil {
-		return errors.Wrap(err, "while unmarshaling contextSchema")
-	}
-
 	in := &hublocalgraphql.CreateTypeInstanceInput{
 		CreatedBy: ptr.String("populator/test-storage-backend-registration"),
 		TypeRef: &hublocalgraphql.TypeInstanceTypeReferenceInput{
@@ -95,7 +88,7 @@ func (i *StorageBackendRegister) RegisterTypeInstances(ctx context.Context) erro
 		Value: typeInstanceValue{
 			URL:           i.cfg.TestStorageBackendURL,
 			AcceptValue:   true,
-			ContextSchema: contextSchema,
+			ContextSchema: testStorageTypeContextSchema,
 		},
 	}
 
diff --git a/internal/installation/capact_register.go b/internal/installation/capact_register.go
index 41f4dfebc..2bd95b06a 100644
--- a/internal/installation/capact_register.go
+++ b/internal/installation/capact_register.go
@@ -212,6 +212,7 @@ func (i *CapactRegister) produceConfigTypeInstance(ownerName string, helmRelease
 	if err != nil {
 		return nil, errors.Wrap(err, "while unmarshaling bytes")
 	}
+
 	return &gqllocalapi.CreateTypeInstanceInput{
 		Alias: ptr.String(ownerName),
 		TypeRef: &gqllocalapi.TypeInstanceTypeReferenceInput{
diff --git a/pkg/argo-actions/download_type_instances.go b/pkg/argo-actions/download_type_instances.go
index 7ef5c0c7b..de0e3b5b6 100644
--- a/pkg/argo-actions/download_type_instances.go
+++ b/pkg/argo-actions/download_type_instances.go
@@ -28,6 +28,17 @@ type Download struct {
 	client *hubclient.Client
 }
 
+// DownloadTypeInstanceData represents the TypeInstance data to download.
+type DownloadTypeInstanceData struct {
+	Value   interface{} `json:"value"`
+	Backend *Backend    `json:"backend,omitempty"`
+}
+
+// Backend represents the TypeInstance Backend.
+type Backend struct {
+	Context interface{} `json:"context,omitempty"`
+}
+
 // NewDownloadAction returns a new Download instance.
 func NewDownloadAction(log *zap.Logger, client *hubclient.Client, cfg []DownloadConfig) Action {
 	return &Download{
@@ -49,7 +60,18 @@ func (d *Download) Do(ctx context.Context) error {
 			return fmt.Errorf("failed to find TypeInstance with ID %q", config.ID)
 		}
 
-		data, err := yaml.Marshal(typeInstance.LatestResourceVersion.Spec.Value)
+		typeInstanceData := DownloadTypeInstanceData{
+			Value: typeInstance.LatestResourceVersion.Spec.Value,
+		}
+
+		if typeInstance.LatestResourceVersion.Spec.Backend != nil &&
+			typeInstance.LatestResourceVersion.Spec.Backend.Context != nil {
+			typeInstanceData.Backend = &Backend{
+				Context: typeInstance.LatestResourceVersion.Spec.Backend.Context,
+			}
+		}
+
+		data, err := yaml.Marshal(typeInstanceData)
 		if err != nil {
 			return errors.Wrap(err, "while marshaling TypeInstance to YAML")
 		}
diff --git a/pkg/argo-actions/update_type_instances.go b/pkg/argo-actions/update_type_instances.go
index 522796593..3e43219b2 100644
--- a/pkg/argo-actions/update_type_instances.go
+++ b/pkg/argo-actions/update_type_instances.go
@@ -2,6 +2,7 @@ package argoactions
 
 import (
 	"context"
+	"encoding/json"
 	"io/ioutil"
 	"path"
 	"path/filepath"
@@ -116,7 +117,26 @@ func (u *Update) render(payload []graphqllocal.UpdateTypeInstancesInput, values
 			return ErrMissingTypeInstanceValue(typeInstance.ID)
 		}
 
-		typeInstance.TypeInstance.Value = value
+		if isTypeInstanceWithLegacySyntax(u.log, value) {
+			typeInstance.TypeInstance.Value = value
+			continue
+		}
+
+		data, err := json.Marshal(value)
+		if err != nil {
+			return errors.Wrap(err, "while marshaling TypeInstance")
+		}
+
+		unmarshalledTI := graphqllocal.UpdateTypeInstanceInput{}
+		err = json.Unmarshal(data, &unmarshalledTI)
+		if err != nil {
+			return errors.Wrap(err, "while unmarshaling TypeInstance")
+		}
+
+		typeInstance.TypeInstance.Value = unmarshalledTI.Value
+		if unmarshalledTI.Backend != nil {
+			typeInstance.TypeInstance.Backend = unmarshalledTI.Backend
+		}
 	}
 	return nil
 }
diff --git a/pkg/argo-actions/upload_type_instances.go b/pkg/argo-actions/upload_type_instances.go
index a65c31fda..3b6a1ad34 100644
--- a/pkg/argo-actions/upload_type_instances.go
+++ b/pkg/argo-actions/upload_type_instances.go
@@ -2,6 +2,7 @@ package argoactions
 
 import (
 	"context"
+	"encoding/json"
 	"fmt"
 	"io/ioutil"
 	"path/filepath"
@@ -15,8 +16,12 @@ import (
 	"sigs.k8s.io/yaml"
 )
 
-// UploadAction represents the upload TypeInstances action.
-const UploadAction = "UploadAction"
+const (
+	// UploadAction represents the upload TypeInstances action.
+	UploadAction = "UploadAction"
+	valueKey     = "value"
+	backendKey   = "backend"
+)
 
 // UploadConfig stores the configuration parameters for the upload TypeInstances action.
 type UploadConfig struct {
@@ -32,6 +37,12 @@ type Upload struct {
 	cfg    UploadConfig
 }
 
+//UploadTypeInstanceData represents the TypeInstance data to upload.
+type UploadTypeInstanceData struct {
+	Value   interface{} `json:"value"`
+	Backend *Backend    `json:"backend,omitempty"`
+}
+
 // NewUploadAction returns a new Upload instance.
 func NewUploadAction(log *zap.Logger, client *hubclient.Client, cfg UploadConfig) Action {
 	return &Upload{
@@ -119,7 +130,32 @@ func (u *Upload) render(payload *graphqllocal.CreateTypeInstancesInput, values m
 			return ErrMissingTypeInstanceValue(*typeInstance.Alias)
 		}
 
-		typeInstance.Value = value
+		if isTypeInstanceWithLegacySyntax(u.log, value) {
+			typeInstance.Value = value
+			continue
+		}
+
+		data, err := json.Marshal(value)
+		if err != nil {
+			return errors.Wrap(err, "while marshaling TypeInstance")
+		}
+
+		unmarshalledTI := UploadTypeInstanceData{}
+		err = json.Unmarshal(data, &unmarshalledTI)
+		if err != nil {
+			return errors.Wrap(err, "while unmarshaling TypeInstance")
+		}
+
+		typeInstance.Value = unmarshalledTI.Value
+		if unmarshalledTI.Backend != nil {
+			if typeInstance.Backend != nil {
+				typeInstance.Backend.Context = unmarshalledTI.Backend.Context
+			} else {
+				typeInstance.Backend = &graphqllocal.TypeInstanceBackendInput{
+					Context: unmarshalledTI.Backend.Context,
+				}
+			}
+		}
 	}
 	return nil
 }
@@ -127,3 +163,16 @@ func (u *Upload) render(payload *graphqllocal.CreateTypeInstancesInput, values m
 func (u *Upload) uploadTypeInstances(ctx context.Context, in *graphqllocal.CreateTypeInstancesInput) ([]graphqllocal.CreateTypeInstanceOutput, error) {
 	return u.client.Local.CreateTypeInstances(ctx, in)
 }
+
+func isTypeInstanceWithLegacySyntax(logger *zap.Logger, value map[string]interface{}) bool {
+	_, hasValue := value[valueKey]
+	_, hasBackend := value[backendKey]
+	if !hasValue && !hasBackend {
+		// for backward compatibility, if there is an artifact without value/backend syntax,
+		// treat it as a value for TypeInstance
+		logger.Info(fmt.Sprintf("Found legacy TypeInstance syntax without '%s' and '%s'", valueKey, backendKey))
+		return true
+	}
+	logger.Info(fmt.Sprintf("Processing TypeInstance '%s' and '%s'", valueKey, backendKey), zap.Bool("hasValue", hasValue), zap.Bool("hasBackend", hasBackend))
+	return false
+}
diff --git a/pkg/hub/api/graphql/local/schema_gen.go b/pkg/hub/api/graphql/local/schema_gen.go
index b572a979b..53c69f9b6 100644
--- a/pkg/hub/api/graphql/local/schema_gen.go
+++ b/pkg/hub/api/graphql/local/schema_gen.go
@@ -723,7 +723,7 @@ type TypeInstanceResourceVersionSpec {
                 abstract: backendRef.abstract,
                 fetchInput: {
                    typeInstance: { resourceVersion: rev.resourceVersion, id: ti.id },
-                   backend: { context: backendCtx.context, id: backendRef.id}
+                   backend: { context: apoc.convert.fromJsonMap(backendCtx.context), id: backendRef.id}
                 }
               } AS value
               RETURN value
@@ -3438,7 +3438,7 @@ func (ec *executionContext) _TypeInstanceResourceVersionSpec_value(ctx context.C
 			return obj.Value, nil
 		}
 		directive1 := func(ctx context.Context) (interface{}, error) {
-			statement, err := ec.unmarshalOString2ᚖstring(ctx, "MATCH (this)<-[:SPECIFIED_BY]-(rev:TypeInstanceResourceVersion)<-[:CONTAINS]-(ti:TypeInstance)\nMATCH (this)-[:WITH_BACKEND]->(backendCtx)\nMATCH (ti)-[:STORED_IN]->(backendRef)\nWITH *\nCALL apoc.when(\n    backendRef.abstract,\n    '\n        WITH {\n          abstract: backendRef.abstract,\n          builtinValue: apoc.convert.fromJsonMap(spec.value)\n        } AS value\n        RETURN value\n    ',\n    '\n        WITH {\n          abstract: backendRef.abstract,\n          fetchInput: {\n             typeInstance: { resourceVersion: rev.resourceVersion, id: ti.id },\n             backend: { context: backendCtx.context, id: backendRef.id}\n          }\n        } AS value\n        RETURN value\n    ',\n    {spec: this, rev: rev, ti: ti, backendRef: backendRef, backendCtx: backendCtx}\n) YIELD value as out\n\nRETURN out.value")
+			statement, err := ec.unmarshalOString2ᚖstring(ctx, "MATCH (this)<-[:SPECIFIED_BY]-(rev:TypeInstanceResourceVersion)<-[:CONTAINS]-(ti:TypeInstance)\nMATCH (this)-[:WITH_BACKEND]->(backendCtx)\nMATCH (ti)-[:STORED_IN]->(backendRef)\nWITH *\nCALL apoc.when(\n    backendRef.abstract,\n    '\n        WITH {\n          abstract: backendRef.abstract,\n          builtinValue: apoc.convert.fromJsonMap(spec.value)\n        } AS value\n        RETURN value\n    ',\n    '\n        WITH {\n          abstract: backendRef.abstract,\n          fetchInput: {\n             typeInstance: { resourceVersion: rev.resourceVersion, id: ti.id },\n             backend: { context: apoc.convert.fromJsonMap(backendCtx.context), id: backendRef.id}\n          }\n        } AS value\n        RETURN value\n    ',\n    {spec: this, rev: rev, ti: ti, backendRef: backendRef, backendCtx: backendCtx}\n) YIELD value as out\n\nRETURN out.value")
 			if err != nil {
 				return nil, err
 			}
diff --git a/pkg/runner/common.go b/pkg/runner/common.go
index bed808ba7..7de70de7d 100644
--- a/pkg/runner/common.go
+++ b/pkg/runner/common.go
@@ -4,6 +4,7 @@ import (
 	"io/ioutil"
 
 	"github.com/pkg/errors"
+	"gopkg.in/yaml.v3"
 )
 
 // DefaultFilePermissions are the default file permissions
@@ -18,3 +19,21 @@ func SaveToFile(path string, bytes []byte) error {
 	}
 	return nil
 }
+
+// NestingOutputUnderValue write output to "value" key in YAML.
+func NestingOutputUnderValue(output []byte) ([]byte, error) {
+	unmarshalled := map[string]interface{}{}
+	err := yaml.Unmarshal(output, &unmarshalled)
+	if err != nil {
+		return nil, errors.Wrap(err, "while unmarshalling output to map[string]interface{}")
+	}
+
+	nestingOutputValue := map[string]interface{}{
+		"value": unmarshalled,
+	}
+	result, err := yaml.Marshal(&nestingOutputValue)
+	if err != nil {
+		return nil, errors.Wrap(err, "while marshaling output under a value key")
+	}
+	return result, nil
+}
diff --git a/pkg/runner/helm/helm.go b/pkg/runner/helm/helm.go
index df21a7ec6..94c7aae5b 100644
--- a/pkg/runner/helm/helm.go
+++ b/pkg/runner/helm/helm.go
@@ -122,7 +122,11 @@ func (r *helmRunner) readCommandData(in runner.StartInput) (Input, error) {
 
 func (r *helmRunner) saveOutput(out Output) error {
 	r.log.Debug("Saving Helm release output", zap.String("path", r.cfg.Output.HelmReleaseFilePath))
-	err := runner.SaveToFile(r.cfg.Output.HelmReleaseFilePath, out.Release)
+	bytesRelease, err := runner.NestingOutputUnderValue(out.Release)
+	if err != nil {
+		return errors.Wrap(err, "while nesting Terrafrom release under value")
+	}
+	err = runner.SaveToFile(r.cfg.Output.HelmReleaseFilePath, bytesRelease)
 	if err != nil {
 		return errors.Wrap(err, "while saving Helm release output")
 	}
@@ -132,7 +136,11 @@ func (r *helmRunner) saveOutput(out Output) error {
 	}
 
 	r.log.Debug("Saving additional output", zap.String("path", r.cfg.Output.AdditionalFilePath))
-	err = runner.SaveToFile(r.cfg.Output.AdditionalFilePath, out.Additional)
+	bytesAdditional, err := runner.NestingOutputUnderValue(out.Additional)
+	if err != nil {
+		return errors.Wrap(err, "while nesting Terrafrom additional under value")
+	}
+	err = runner.SaveToFile(r.cfg.Output.AdditionalFilePath, bytesAdditional)
 	if err != nil {
 		return errors.Wrap(err, "while saving default output")
 	}
diff --git a/pkg/runner/helm/types.go b/pkg/runner/helm/types.go
index 4936bbdef..e34fd7c41 100644
--- a/pkg/runner/helm/types.go
+++ b/pkg/runner/helm/types.go
@@ -96,6 +96,11 @@ type ChartRelease struct {
 	Chart     Chart  `json:"chart"`
 }
 
+// ChartReleaseInputData represents a Helm chart release input data.
+type ChartReleaseInputData struct {
+	Value ChartRelease `json:"value"`
+}
+
 // Input stores the input configuration for the runner.
 type Input struct {
 	Args Arguments
diff --git a/pkg/runner/helm/upgrade.go b/pkg/runner/helm/upgrade.go
index 8c4fc9631..20bc9a1a1 100644
--- a/pkg/runner/helm/upgrade.go
+++ b/pkg/runner/helm/upgrade.go
@@ -110,11 +110,11 @@ func (i *upgrader) loadHelmReleaseData(path string) (ChartRelease, error) {
 		return ChartRelease{}, errors.Wrapf(err, "while reading values from file %q", path)
 	}
 
-	var chartRelease ChartRelease
-	if err := yaml.Unmarshal(bytes, &chartRelease); err != nil {
+	var chartReleaseIn ChartReleaseInputData
+	if err := yaml.Unmarshal(bytes, &chartReleaseIn); err != nil {
 		return ChartRelease{}, errors.Wrapf(err, "while parsing %q", path)
 	}
-	return chartRelease, nil
+	return chartReleaseIn.Value, nil
 }
 
 func (i *upgrader) mergeHelmChartData(helmRelease ChartRelease, in Input) ChartRelease {
diff --git a/pkg/runner/terraform/runner.go b/pkg/runner/terraform/runner.go
index 11af36b36..af422c5c4 100644
--- a/pkg/runner/terraform/runner.go
+++ b/pkg/runner/terraform/runner.go
@@ -223,7 +223,12 @@ func (r *terraformRunner) mergeInputVariables(variables string) error {
 func (r *terraformRunner) saveOutput(out Output) error {
 	if out.Release != nil {
 		r.log.Debug("Saving terraform release output", zap.String("path", r.cfg.Output.TerraformReleaseFilePath))
-		err := runner.SaveToFile(r.cfg.Output.TerraformReleaseFilePath, out.Release)
+		bytesRelease, err := runner.NestingOutputUnderValue(out.Release)
+		if err != nil {
+			return errors.Wrap(err, "while nesting Terrafrom release under value")
+		}
+
+		err = runner.SaveToFile(r.cfg.Output.TerraformReleaseFilePath, bytesRelease)
 		if err != nil {
 			return errors.Wrap(err, "while saving terraform release output")
 		}
@@ -231,7 +236,12 @@ func (r *terraformRunner) saveOutput(out Output) error {
 
 	if out.Additional != nil {
 		r.log.Debug("Saving additional output", zap.String("path", r.cfg.Output.AdditionalFilePath))
-		err := runner.SaveToFile(r.cfg.Output.AdditionalFilePath, out.Additional)
+		bytesAdditional, err := runner.NestingOutputUnderValue(out.Additional)
+		if err != nil {
+			return errors.Wrap(err, "while nesting Terrafrom additional under value")
+		}
+
+		err = runner.SaveToFile(r.cfg.Output.AdditionalFilePath, bytesAdditional)
 		if err != nil {
 			return errors.Wrap(err, "while saving default output")
 		}
@@ -243,7 +253,12 @@ func (r *terraformRunner) saveOutput(out Output) error {
 		return errors.Wrap(err, "while marshaling state")
 	}
 
-	err = runner.SaveToFile(r.cfg.Output.TfstateFilePath, stateData)
+	nestingStateData, err := runner.NestingOutputUnderValue(stateData)
+	if err != nil {
+		return errors.Wrap(err, "while nesting Terrafrom state data under value")
+	}
+
+	err = runner.SaveToFile(r.cfg.Output.TfstateFilePath, nestingStateData)
 	if err != nil {
 		return errors.Wrap(err, "while saving tfstate output")
 	}
diff --git a/test/e2e/action_test.go b/test/e2e/action_test.go
index add70e865..c0e75f516 100644
--- a/test/e2e/action_test.go
+++ b/test/e2e/action_test.go
@@ -13,7 +13,6 @@ import (
 	"strings"
 	"time"
 
-	"capact.io/capact/internal/cli/heredoc"
 	"capact.io/capact/internal/ptr"
 	enginegraphql "capact.io/capact/pkg/engine/api/graphql"
 	engine "capact.io/capact/pkg/engine/client"
@@ -32,6 +31,7 @@ const (
 	actionPassingInterfacePath = "cap.interface.capactio.capact.validation.action.passing"
 	uploadTypePath             = "cap.type.capactio.capact.validation.upload"
 	singleKeyTypePath          = "cap.type.capactio.capact.validation.single-key"
+	testStorageBackendPath     = "cap.type.capactio.capact.validation.storage"
 )
 
 func getActionName() string {
@@ -66,26 +66,28 @@ var _ = Describe("Action", func() {
 
 		It("should pick Implementation A", func() {
 			implIndicatorValue := "Implementation A"
+			testStorageBackendTI := getDefaultTestStorageTypeInstance(ctx, hubClient)
+			backendInput := hublocalgraphql.TypeInstanceBackendInput{
+				ID: testStorageBackendTI.ID,
+				Context: map[string]interface{}{
+					"provider": "dotenv",
+				},
+			}
 
 			// TODO: This can be extracted after switching to ginkgo v2
 			// see: https://github.com/onsi/ginkgo/issues/70#issuecomment-924250145
 			By("1. Preparing input Type Instances")
 
 			By("1.1 Creating TypeInstance which will be downloaded")
-			download := getTypeInstanceInputForDownload(implIndicatorValue)
+			download := getTypeInstanceInputForDownload(map[string]interface{}{"key": implIndicatorValue}, nil)
 			downloadTI, downloadTICleanup := createTypeInstance(ctx, hubClient, download)
 			defer downloadTICleanup()
 
 			By("1.2 Creating TypeInstance which will be downloaded and updated")
-			update := getTypeInstanceInputForUpdate()
+			update := getTypeInstanceInputForUpdate(nil)
 			updateTI, updateTICleanup := createTypeInstance(ctx, hubClient, update)
 			defer updateTICleanup()
 
-			By("1.3 Creating TypeInstance that describes Helm storage")
-			helmStorage := fixHelmStorageTypeInstanceCreateInput()
-			helmStorageTI, helmStorageTICleanup := createTypeInstance(ctx, hubClient, helmStorage)
-			defer helmStorageTICleanup()
-
 			inputData := &enginegraphql.ActionInputData{
 				TypeInstances: []*enginegraphql.InputTypeInstanceData{
 					{Name: "testInput", ID: downloadTI.ID},
@@ -123,51 +125,68 @@ var _ = Describe("Action", func() {
 			waitForActionDeleted(ctx, engineClient, actionName)
 
 			By("6. Modifying Policy to change backend storage for uploaded TypeInstance via TypeRef...")
-			setGlobalTestPolicy(ctx, engineClient, withHelmBackendForUploadTypeRef(helmStorageTI.ID))
+			setGlobalTestPolicy(ctx, engineClient, withTestBackendForUploadTypeRef(testStorageBackendTI.ID))
+
+			By("7. Creating TypeInstance which will be used by test storage with dotenv provider")
+
+			By("7.1 Creating TypeInstance which will be downloaded")
+			download2 := getTypeInstanceInputForDownload(map[string]interface{}{"key": implIndicatorValue}, &backendInput)
+			downloadTI2, downloadTICleanup2 := createTypeInstance(ctx, hubClient, download2)
+			defer downloadTICleanup2()
+
+			By("7.2 Creating TypeInstance which will be downloaded and updated")
+			update2 := getTypeInstanceInputForUpdate(&backendInput)
+			updateTI2, updateTICleanup2 := createTypeInstance(ctx, hubClient, update2)
+			defer updateTICleanup2()
 
-			By("7. Expecting Implementation A is picked and the Helm storage is used for uploaded TypeInstance...")
+			inputData = &enginegraphql.ActionInputData{
+				TypeInstances: []*enginegraphql.InputTypeInstanceData{
+					{Name: "testInput", ID: downloadTI2.ID},
+					{Name: "testUpdate", ID: updateTI2.ID},
+				},
+			}
+
+			By("8. Expecting Implementation A is picked and the test storage is used for uploaded TypeInstance...")
 			action = createActionAndWaitForReadyToRunPhase(ctx, engineClient, actionName, actionPassingInterfacePath, inputData)
 			assertActionRenderedWorkflowContains(action, "echo '%s'", implIndicatorValue)
 			runActionAndWaitForSucceeded(ctx, engineClient, actionName)
 
-			By("8.1 Check uploaded TypeInstances")
-			expUploadTIBackend = &hublocalgraphql.TypeInstanceBackendReference{ID: helmStorageTI.ID, Abstract: false}
-
-			// TODO(https://github.com/capactio/capact/issues/634): remove after using a real backend.
-			// for now, the Local Hub returns backend id under `key` property.
-			implIndicatorValue = expUploadTIBackend.ID
+			By("9.1 Check uploaded TypeInstances")
+			expUploadTIBackend = &hublocalgraphql.TypeInstanceBackendReference{ID: testStorageBackendTI.ID, Abstract: false}
+			uploadedTI2, cleanupUploaded2 := getUploadedTypeInstanceByValue(ctx, hubClient, implIndicatorValue)
+			defer cleanupUploaded2()
+			Expect(uploadedTI2.Backend).Should(Equal(expUploadTIBackend))
 
-			uploadedTI, cleanupUploaded = getUploadedTypeInstanceByValue(ctx, hubClient, implIndicatorValue)
-			defer cleanupUploaded() // We need to clean it up as it's not deleted when Action is deleted.
-			Expect(uploadedTI.Backend).Should(Equal(expUploadTIBackend))
-
-			By("8.2 Check Action output TypeInstances")
-			uploadedTIOutput = mapToOutputTypeInstanceDetails(uploadedTI, expUploadTIBackend)
-			assertOutputTypeInstancesInActionStatus(ctx, engineClient, action.Name, And(ContainElements(expUpdatedTIOutput, uploadedTIOutput), HaveLen(2)))
+			By("9.2 Check Action output TypeInstances")
+			updateTIOutput := mapToOutputTypeInstanceDetails(updateTI2, expUploadTIBackend)
+			uploadedTIOutput = mapToOutputTypeInstanceDetails(uploadedTI2, expUploadTIBackend)
+			assertOutputTypeInstancesInActionStatus(ctx, engineClient, action.Name, And(ContainElements(updateTIOutput, uploadedTIOutput), HaveLen(2)))
 		})
 
 		It("should pick Implementation B based on Policy rule", func() {
 			implIndicatorValue := "Implementation B"
+			testStorageBackendTI := getDefaultTestStorageTypeInstance(ctx, hubClient)
+			backendInput := hublocalgraphql.TypeInstanceBackendInput{
+				ID: testStorageBackendTI.ID,
+				Context: map[string]interface{}{
+					"provider": "dotenv",
+				},
+			}
 
 			// TODO: This can be extracted after switching to ginkgo v2
 			// see: https://github.com/onsi/ginkgo/issues/70#issuecomment-924250145
 			By("1. Preparing input Type Instances")
 			By("1.1 Creating TypeInstance which will be downloaded")
-			download := getTypeInstanceInputForDownload(implIndicatorValue)
+			download := getTypeInstanceInputForDownload(map[string]interface{}{"key": implIndicatorValue}, &backendInput)
 			downloadTI, downloadTICleanup := createTypeInstance(ctx, hubClient, download)
 			defer downloadTICleanup()
 
 			By("1.2 Creating TypeInstance which will be downloaded and updated")
-			update := getTypeInstanceInputForUpdate()
+			update := getTypeInstanceInputForUpdate(&backendInput)
 			updateTI, updateTICleanup := createTypeInstance(ctx, hubClient, update)
 			defer updateTICleanup()
 
-			By("1.3 Creating TypeInstance that describes Helm storage")
-			helmStorage := fixHelmStorageTypeInstanceCreateInput()
-			helmStorageTI, helmStorageTICleanup := createTypeInstance(ctx, hubClient, helmStorage)
-			defer helmStorageTICleanup()
-
-			By("1.4 Create TypeInstance which is required for Implementation B to be picked based on Policy")
+			By("1.3 Create TypeInstance which is required for Implementation B to be picked based on Policy")
 			typeInstanceValue := getTypeInstanceInputForPolicy()
 			injectTypeInstance, tiCleanupFn := createTypeInstance(ctx, hubClient, typeInstanceValue)
 			defer tiCleanupFn()
@@ -186,26 +205,21 @@ var _ = Describe("Action", func() {
 					Description: ptr.String("Test TypeInstance"),
 				},
 				{
-					ID:          helmStorageTI.ID,
-					Description: ptr.String("Helm backend TypeInstance"),
+					ID:          testStorageBackendTI.ID,
+					Description: ptr.String("Dotenv storage backend TypeInstance"),
 				},
 			}
 			setGlobalTestPolicy(ctx, engineClient, prependInjectRuleForPassingActionInterface(globalPolicyRequiredTypeInstances))
 
-			By("3. Expecting Implementation B is picked and injected Helm storage is used...")
+			By("3. Expecting Implementation B is picked and injected test storage is used...")
 			action := createActionAndWaitForReadyToRunPhase(ctx, engineClient, actionName, actionPassingInterfacePath, inputData)
 			assertActionRenderedWorkflowContains(action, "echo '%s'", implIndicatorValue)
 			runActionAndWaitForSucceeded(ctx, engineClient, actionName)
 
 			By("4.1 Check uploaded TypeInstances")
-			expUploadTIBackend := &hublocalgraphql.TypeInstanceBackendReference{ID: helmStorageTI.ID, Abstract: false}
-
-			// TODO(https://github.com/capactio/capact/issues/634): remove after using a real backend.
-			// for now, the Local Hub returns backend id under `key` property.
-			implIndicatorValue = expUploadTIBackend.ID
-
+			expUploadTIBackend := &hublocalgraphql.TypeInstanceBackendReference{ID: testStorageBackendTI.ID, Abstract: false}
 			uploadedTI, cleanupUploaded := getUploadedTypeInstanceByValue(ctx, hubClient, implIndicatorValue)
-			defer cleanupUploaded() // We need to clean it up as it's not deleted when Action is deleted.
+			defer cleanupUploaded()
 			Expect(uploadedTI.Backend).Should(Equal(expUploadTIBackend))
 
 			By("4.2 Check Action output TypeInstances")
@@ -215,26 +229,28 @@ var _ = Describe("Action", func() {
 
 		It("should pick Implementation B based on Interface default", func() {
 			implIndicatorValue := "Implementation B"
+			testStorageBackendTI := getDefaultTestStorageTypeInstance(ctx, hubClient)
+			backendInput := hublocalgraphql.TypeInstanceBackendInput{
+				ID: testStorageBackendTI.ID,
+				Context: map[string]interface{}{
+					"provider": "dotenv",
+				},
+			}
 
 			// TODO: This can be extracted after switching to ginkgo v2
 			// see: https://github.com/onsi/ginkgo/issues/70#issuecomment-924250145
 			By("1. Preparing input Type Instances")
 			By("1.1 Creating TypeInstance which will be downloaded")
-			download := getTypeInstanceInputForDownload(implIndicatorValue)
+			download := getTypeInstanceInputForDownload(map[string]interface{}{"key": implIndicatorValue}, &backendInput)
 			downloadTI, downloadTICleanup := createTypeInstance(ctx, hubClient, download)
 			defer downloadTICleanup()
 
 			By("1.2 Creating TypeInstance which will be downloaded and updated")
-			update := getTypeInstanceInputForUpdate()
+			update := getTypeInstanceInputForUpdate(&backendInput)
 			updateTI, updateTICleanup := createTypeInstance(ctx, hubClient, update)
 			defer updateTICleanup()
 
-			By("1.3 Creating TypeInstance that describes Helm storage")
-			helmStorage := fixHelmStorageTypeInstanceCreateInput()
-			helmStorageTI, helmStorageTICleanup := createTypeInstance(ctx, hubClient, helmStorage)
-			defer helmStorageTICleanup()
-
-			By("1.4 Create TypeInstance which is required for Implementation B to be picked based on Policy")
+			By("1.3 Create TypeInstance which is required for Implementation B to be picked based on Policy")
 			typeInstanceValue := getTypeInstanceInputForPolicy()
 			injectTypeInstance, tiCleanupFn := createTypeInstance(ctx, hubClient, typeInstanceValue)
 			defer tiCleanupFn()
@@ -253,24 +269,19 @@ var _ = Describe("Action", func() {
 					Description: ptr.String("Test TypeInstance"),
 				},
 				{
-					ID:          helmStorageTI.ID,
-					Description: ptr.String("Helm backend TypeInstance"),
+					ID:          testStorageBackendTI.ID,
+					Description: ptr.String("Dotenv storage backend TypeInstance"),
 				},
 			}
 			setGlobalTestPolicy(ctx, engineClient, addInterfacePolicyDefaultInjectionForPassingActionInterface(globalPolicyRequiredTypeInstances))
 
-			By("3. Expecting Implementation B is picked and injected Helm storage is used...")
+			By("3. Expecting Implementation B is picked and injected test storage is used...")
 			action := createActionAndWaitForReadyToRunPhase(ctx, engineClient, actionName, actionPassingInterfacePath, inputData)
 			assertActionRenderedWorkflowContains(action, "echo '%s'", implIndicatorValue)
 			runActionAndWaitForSucceeded(ctx, engineClient, actionName)
 
 			By("4.1 Check uploaded TypeInstances")
-			expUploadTIBackend := &hublocalgraphql.TypeInstanceBackendReference{ID: helmStorageTI.ID, Abstract: false}
-
-			// TODO(https://github.com/capactio/capact/issues/634): remove after using a real backend.
-			// for now, the Local Hub returns backend id under `key` property.
-			implIndicatorValue = expUploadTIBackend.ID
-
+			expUploadTIBackend := &hublocalgraphql.TypeInstanceBackendReference{ID: testStorageBackendTI.ID, Abstract: false}
 			uploadedTI, cleanupUploaded := getUploadedTypeInstanceByValue(ctx, hubClient, implIndicatorValue)
 			defer cleanupUploaded() // We need to clean it up as it's not deleted when Action is deleted.
 			Expect(uploadedTI.Backend).Should(Equal(expUploadTIBackend))
@@ -311,7 +322,7 @@ var _ = Describe("Action", func() {
 
 			By("Prepare TypeInstance to update")
 
-			update := getTypeInstanceInputForUpdate()
+			update := getTypeInstanceInputForUpdate(nil)
 			updateTI, updateTICleanup := createTypeInstance(ctx, hubClient, update)
 			defer updateTICleanup()
 
@@ -439,13 +450,14 @@ func getTypeInstanceInputForPolicy() *hublocalgraphql.CreateTypeInstanceInput {
 	}
 }
 
-func getTypeInstanceInputForDownload(testValue string) *hublocalgraphql.CreateTypeInstanceInput {
+func getTypeInstanceInputForDownload(testValues map[string]interface{}, backendInput *hublocalgraphql.TypeInstanceBackendInput) *hublocalgraphql.CreateTypeInstanceInput {
 	return &hublocalgraphql.CreateTypeInstanceInput{
 		TypeRef: &hublocalgraphql.TypeInstanceTypeReferenceInput{
 			Path:     "cap.type.capactio.capact.validation.download",
 			Revision: "0.1.0",
 		},
-		Value: map[string]interface{}{"key": testValue},
+		Value:   testValues,
+		Backend: backendInput,
 		Attributes: []*hublocalgraphql.AttributeReferenceInput{
 			{
 				Path:     "cap.attribute.capactio.capact.attribute1",
@@ -455,13 +467,14 @@ func getTypeInstanceInputForDownload(testValue string) *hublocalgraphql.CreateTy
 	}
 }
 
-func getTypeInstanceInputForUpdate() *hublocalgraphql.CreateTypeInstanceInput {
+func getTypeInstanceInputForUpdate(backendInput *hublocalgraphql.TypeInstanceBackendInput) *hublocalgraphql.CreateTypeInstanceInput {
 	return &hublocalgraphql.CreateTypeInstanceInput{
 		TypeRef: &hublocalgraphql.TypeInstanceTypeReferenceInput{
 			Path:     "cap.type.capactio.capact.validation.update",
 			Revision: "0.1.0",
 		},
-		Value: map[string]interface{}{"key": "random text to update"},
+		Value:   map[string]interface{}{"key": "random text to update"},
+		Backend: backendInput,
 		Attributes: []*hublocalgraphql.AttributeReferenceInput{
 			{
 				Path:     "cap.attribute.capactio.capact.attribute1",
@@ -471,40 +484,6 @@ func getTypeInstanceInputForUpdate() *hublocalgraphql.CreateTypeInstanceInput {
 	}
 }
 
-func fixHelmStorageTypeInstanceCreateInput() *hublocalgraphql.CreateTypeInstanceInput {
-	return &hublocalgraphql.CreateTypeInstanceInput{
-		TypeRef: &hublocalgraphql.TypeInstanceTypeReferenceInput{
-			Path:     "cap.type.helm.storage",
-			Revision: "0.1.0",
-		},
-		Attributes: []*hublocalgraphql.AttributeReferenceInput{},
-		Value: map[string]interface{}{
-			"url":         "e2e-test-backend-mock-url:50051",
-			"acceptValue": true,
-			"contextSchema": heredoc.Doc(`
-				{
-					"$id": "#/properties/contextSchema",
-					"type": "object",
-					"required": [
-						"name",
-						"namespace"
-					],
-					"properties": {
-						"name": {
-							"$id": "#/properties/contextSchema/properties/name",
-							"type": "string"
-						},
-						"namespace": {
-							"$id": "#/properties/contextSchema/properties/namespace",
-							"type": "string"
-						}
-					},
-					"additionalProperties": false
-				}`),
-		},
-	}
-}
-
 func createActionAndWaitForReadyToRunPhase(ctx context.Context, engineClient *engine.Client, actionName, actionPath string, input *enginegraphql.ActionInputData) *enginegraphql.Action {
 	_, err := engineClient.CreateAction(ctx, &enginegraphql.ActionDetailsInput{
 		Name: actionName,
@@ -579,7 +558,7 @@ func createTypeInstance(ctx context.Context, hubClient *hubclient.Client, in *hu
 
 type policyOption func(*enginegraphql.PolicyInput)
 
-func withHelmBackendForUploadTypeRef(backendID string) policyOption {
+func withTestBackendForUploadTypeRef(backendID string) policyOption {
 	return func(policy *enginegraphql.PolicyInput) {
 		policy.TypeInstance = &enginegraphql.TypeInstancePolicyInput{
 			Rules: []*enginegraphql.RulesForTypeInstanceInput{
@@ -677,6 +656,18 @@ func getTypeInstanceByIDAndValue(ctx context.Context, hubClient *hubclient.Clien
 	return updateTI
 }
 
+func getDefaultTestStorageTypeInstance(ctx context.Context, hubClient *hubclient.Client) *hublocalgraphql.TypeInstance {
+	storage, err := hubClient.ListTypeInstances(ctx, &hublocalgraphql.TypeInstanceFilter{
+		TypeRef: &hublocalgraphql.TypeRefFilterInput{
+			Path:     testStorageBackendPath,
+			Revision: ptr.String("0.1.0"),
+		},
+	})
+	Expect(err).ToNot(HaveOccurred())
+	Expect(len(storage)).Should(Equal(1))
+	return &storage[0]
+}
+
 func getUploadedTypeInstanceByValue(ctx context.Context, hubClient *hubclient.Client, expValue string) (*hublocalgraphql.TypeInstance, func()) {
 	uploaded, err := hubClient.ListTypeInstances(ctx, &hublocalgraphql.TypeInstanceFilter{
 		TypeRef: &hublocalgraphql.TypeRefFilterInput{
diff --git a/test/e2e/cluster_test.go b/test/e2e/cluster_test.go
index 916862b5a..e65cd2113 100644
--- a/test/e2e/cluster_test.go
+++ b/test/e2e/cluster_test.go
@@ -1,3 +1,4 @@
+//go:build integration
 // +build integration
 
 package e2e