(sdks) Add new How it works page

fern/products/sdks/guides/self-hosted.mdx

@@ -6,7 +6,7 @@ description: Fern supports self-hosting SDK generation so that you can run SDK g
 
 <Markdown src="/snippets/enterprise-plan.mdx" />
 
-Fern SDK generation runs on Fern's infrastructure by default. Self-hosting allows you to run SDK generation on your own infrastructure to meet specific security or compliance requirements.
+Fern SDK generation [runs on Fern's infrastructure by default](/sdks/overview/how-it-works). Self-hosting allows you to run SDK generation on your own infrastructure to meet specific security or compliance requirements.
 
 ## When to use self-hosting
 

fern/products/sdks/how-it-works.mdx

@@ -0,0 +1,55 @@
+---
+title: How SDKs work
+description: Learn how Fern generates SDKs using cloud infrastructure
+---
+
+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.
+
+<Info>
+    Alternatively, [you can run SDK generation on your own infrastructure](/sdks/deep-dives/self-hosted) to meet specific security or compliance requirements.
+</Info>
+
+## 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:
+
+<Steps>
+<Step title="Cloud execution">
+Fern allocates compute resources with Fiddle and pulls the appropriate Docker image for your specified generator version.
+</Step>
+<Step title="Generate core SDK">
+The Docker container executes the generation logic and produces your SDK's core files (models, client code, API methods).
+</Step>
+<Step title="Verify organization">
+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.
+</Step>
+<Step title="Add package metadata">
+Fern completes the SDK by adding package distribution files such as `pyproject.toml`, `package.json`, README, and any dependencies. 
+</Step>
+<Step title="Output to destination">
+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.
+</Step>
+</Steps>
+
+<Accordion title="Architecture diagram" toc={true}>
+
+```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
+```
+</Accordion>

fern/products/sdks/sdks.yml

@@ -4,6 +4,8 @@ navigation:
       - page: Introduction
         path: ./introduction.mdx
         slug: introduction
+      - page: How it works
+        path: ./how-it-works.mdx
       - page: Quickstart
         path: ./fern-folder.mdx
         slug: quickstart