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Compute Nest:Distribution of Compute Nest software

Last Updated:Mar 31, 2026

Compute Nest software distribution lets independent software vendors (ISVs) authorize cloud distributors to resell their software, so customers can purchase ISV software through distributor channels — all managed through Compute Nest.

Three parties are involved in every distribution relationship:

  • ISV (software developer): Publishes software in Compute Nest and grants distribution permissions to cloud distributors.

  • Cloud distributor: Builds on the ISV's software to create a resellable product, then sells it to customers through Alibaba Cloud Marketplace.

  • Customer: Purchases the distributor's product and uses the deployed service instance.

How it works

An ISV publishes Software A in Compute Nest and enables distribution. A cloud distributor then applies for — or is granted — permission to distribute that software. The distributor performs secondary development on Software A to create Software B, publishes Software B to Compute Nest and Alibaba Cloud Marketplace, and customers can then purchase and deploy Software B as a service instance.

This model gives ISVs access to distributor sales channels, lets distributors offer integrated software-plus-cloud-resource solutions, and simplifies deployment for customers.

Key concepts

Private service: Cloud resources belong to the customer. Customers are charged for Alibaba Cloud resource usage and can directly manage those resources.

Fully managed service: Cloud resources belong to the ISV. The ISV is charged for cloud resource usage. Customers receive only a logon URL or web page URL. To perform operations on the cloud resources, customers must request the required permissions from the ISV.

Choose a distribution scenario

Compute Nest supports four distribution scenarios based on the service types that the ISV and distributor each publish. Use the table below to identify which scenario fits your situation.

ScenarioService A (ISV)Service B (distributor)Bill settlementWhen to use this
Scenario 1Private servicePrivate serviceOfflineISV sells software and provides licenses; distributor only provides the sales channel; customer owns and manages cloud resources
Scenario 2Private serviceFully managed serviceOfflineDistributor wants to own the cloud resources and provide O&M capabilities to customers
Scenario 3Fully managed service (published to Alibaba Cloud Marketplace)Fully managed serviceOnline (via Alibaba Cloud Marketplace)ISV has already published to Alibaba Cloud Marketplace and wants automated order settlement between ISV and distributor
Scenario 4Fully managed service (settled offline)Fully managed serviceOfflineISV's fully managed service is not listed on Alibaba Cloud Marketplace; ISV and distributor settle bills offline

Scenario 1

The ISV sells software with licenses. The distributor provides only the distribution channel. Cloud resources are owned and managed by the customer, who pays both software fees and Alibaba Cloud resource fees. Bills between the distributor and ISV are settled offline.

Scenario 2

The distributor distributes the software and provides specific O&M capabilities to customers. Cloud resources belong to the distributor, who has full permissions to manage them and is charged the Alibaba Cloud resource fees. Customers receive only the logon URL or web page URL and are charged the service fees published by the distributor to Alibaba Cloud Marketplace. Bills between the distributor and ISV are settled offline.

Scenario 3

The ISV provides a fully managed service that is already published to Alibaba Cloud Marketplace, so the distributor's service must also be a fully managed service. Cloud resources belong to the ISV, and customers receive only the logon URL or web page URL. Both the ISV and the distributor have their own services, Alibaba Cloud Marketplace products, and orders. When a customer purchases the distributor's product, Compute Nest automatically creates a corresponding order for the ISV's distributed service with the distributor as the buyer. This makes Scenario 3 the only scenario that supports online bill settlement through the Alibaba Cloud Marketplace settlement system.

Scenario 4

Cloud resources belong to the ISV, and the ISV is charged for cloud resource usage. Customers receive only the logon URL or web page URL. Bills between the distributor and ISV are settled offline.

Distribution process

Software ecosystem

More than 800 software developers provide services in Compute Nest, forming a cloud-based software application ecosystem. Compute Nest orchestrates all Alibaba Cloud public cloud services and provides deployment packages, parameter sets, and service O&M features to simplify cloud deployment and technology integration for ISVs and distributors.

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