diff --git a/defaults/main.yml b/defaults/main.yml
index 841afd3..efc7d53 100644
--- a/defaults/main.yml
+++ b/defaults/main.yml
@@ -87,10 +87,10 @@ zun_kuryr_log_dir: "/var/log/kuryr"
 ## Docker setup information
 zun_docker_package_version: "{{ _zun_docker_package_version }}"
 zun_containerd_package_version: "{{ _zun_containerd_package_version }}"
-zun_kata_package_version: "3.1.0"
+zun_kata_package_version: "3.16.0"
 zun_kata_package_source: >-
-  https://github.com/kata-containers/kata-containers/releases/download/{{ zun_kata_package_version }}/kata-static-{{ zun_kata_package_version }}-x86_64.tar.xz
-zun_kata_package_checksum: sha256:452cc850e021539c14359d016aba18ddba128f59aa9ab637738296d9b5cd78a0
+  https://github.com/kata-containers/kata-containers/releases/download/{{ zun_kata_package_version }}/kata-static-{{ zun_kata_package_version }}-amd64.tar.xz
+zun_kata_package_checksum: sha256:56cb69a7bb6d3364e92155e06283972e71654a88c70816a55f891f209a8f74db
 zun_kata_enabled: "True"
 
 # Set a list of users that are permitted to execute the docker binary.
@@ -385,8 +385,8 @@ zun_kuryr_init_defaults:
     User: "{{ zun_kuryr_system_user_name }}"
 
 # Key-value storage for docker swarm standalone mode.
-# Possible options: zk, etcd and consul
-zun_docker_kv_storage: etcd
+# Possible options: zk, etcd, consul and null to disable swarm mode
+zun_docker_kv_storage: null
 zun_docker_kv_port: 2379
 zun_docker_kv_group: zun_api
 
@@ -395,7 +395,7 @@ zun_docker_init_defaults:
   Service:
     ExecStart:
       - ""
-      - "/usr/bin/dockerd --group {{ zun_system_group_name }} -H tcp://{{ zun_docker_bind_host }}:{{ zun_docker_bind_port }} -H unix:///var/run/docker.sock --cluster-store {{ zun_docker_kv_storage }}://{% for item in groups[zun_docker_kv_group] %}{{ hostvars[item]['management_address'] }}:{{ zun_docker_kv_port }}{% if not loop.last %},{% endif %}{% endfor %}{% if zun_kata_enabled %} --add-runtime kata=/opt/kata/bin/kata-runtime{% endif %}" # noqa: yaml[line-length]
+      - "/usr/bin/dockerd --group {{ zun_system_group_name }} -H tcp://{{ zun_docker_bind_host }}:{{ zun_docker_bind_port }} -H unix:///var/run/docker.sock {% if zun_docker_kv_storage %}--cluster-store {{ zun_docker_kv_storage }}://{% for item in groups[zun_docker_kv_group] %}{{ hostvars[item]['management_address'] }}:{{ zun_docker_kv_port }}{% if not loop.last %},{% endif %}{% endfor %}{% endif %}{% if zun_kata_enabled %} --add-runtime kata=/opt/kata/bin/kata-runtime{% endif %}" # noqa: yaml[line-length]
 
 ## Tunable overrides for service unit files.
 zun_api_paste_ini_overrides: {}
diff --git a/releasenotes/notes/docker_local_mode-a894d151f31f5f6e.yaml b/releasenotes/notes/docker_local_mode-a894d151f31f5f6e.yaml
new file mode 100644
index 0000000..1ef221e
--- /dev/null
+++ b/releasenotes/notes/docker_local_mode-a894d151f31f5f6e.yaml
@@ -0,0 +1,18 @@
+---
+upgrade:
+  - |
+    Docker mode for zun-compute has been switched to "local" mode.
+    This means, that supporting etcd cluster is no longer required
+    for Zun to operate.
+    If you want preserve old behavior, you will need to pin Docker and
+    Containerd versions back along with adding ``zun_docker_kv_storage: etcd``
+    to ``user_variables.yml``
+  - |
+    For deployments with Zun, underlying software versions were upgraded to:
+    * Docker 20.10.24 -> 27.5.1
+    * Containerd 1.6.20 -> 1.7.27
+    * Kata 3.1.0 -> 3.16.0
+deprecations:
+  - |
+    Variables ``zun_docker_kv_storage`` and ``zun_docker_kv_group`` were
+    deprecated and will be removed in the next release.
diff --git a/tasks/zun_compute.yml b/tasks/zun_compute.yml
index 040839a..c130883 100644
--- a/tasks/zun_compute.yml
+++ b/tasks/zun_compute.yml
@@ -135,7 +135,7 @@
         checksum: "{{ zun_kata_package_checksum }}"
       register: _kata_downloaded
 
-    - name: Unpack package
+    - name: Unpack package  # noqa: no-handler
       ansible.builtin.unarchive:
         src: "/opt/{{ zun_kata_package_source | basename }}"
         dest: /opt/
diff --git a/templates/kuryr-libnetwork.conf.j2 b/templates/kuryr-libnetwork.conf.j2
index ceaf30a..6679887 100644
--- a/templates/kuryr-libnetwork.conf.j2
+++ b/templates/kuryr-libnetwork.conf.j2
@@ -10,8 +10,10 @@ bindir = {{ zun_bin | dirname }}/libexec/kuryr
 # Kuryr URL for accessing Kuryr through json rpc. (string value)
 kuryr_uri = http://{{ zun_kuryr_service_address }}:{{ zun_kuryr_service_port }}
 
+{% if zun_docker_kv_storage %}
 # Kuryr plugin scope reported to libnetwork. (string value)
 capability_scope = global
+{% endif %}
 
 # Do processing external connectivity (boolean value)
 process_external_connectivity = false
diff --git a/vars/debian.yml b/vars/debian.yml
index 93e5d6e..f9a5620 100644
--- a/vars/debian.yml
+++ b/vars/debian.yml
@@ -13,8 +13,8 @@
 # See the License for the specific language governing permissions and
 # limitations under the License.
 
-_zun_docker_package_version: "5:20.10.24~*"
-_zun_containerd_package_version: "1.6.20-1"
+_zun_docker_package_version: "5:27.5.1-1~*"
+_zun_containerd_package_version: "1.7.27-1"
 
 _zun_architecture_mapping:
   x86_64: amd64
diff --git a/vars/redhat.yml b/vars/redhat.yml
index a64ca7c..892b645 100644
--- a/vars/redhat.yml
+++ b/vars/redhat.yml
@@ -13,8 +13,8 @@
 # See the License for the specific language governing permissions and
 # limitations under the License.
 
-_zun_docker_package_version: "20.10.24-3"
-_zun_containerd_package_version: "1.6.20-3.1"
+_zun_docker_package_version: "27.5.1-1"
+_zun_containerd_package_version: "1.7.27-3.1"
 
 zun_docker_repo:
   - name: "docker-ce"