If I am creating a managed package, is it necessary to publish it on Appexchange?
The package I have created, Is there any other way I can install the package on a salesforce instance (not my) without going via appexchange?
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There is no necessity that if we are making a managed package then it should be on Appexhange. Appexchange is basically a marketplace for salesforce as Itunes is for Apple.
To install a package:
When create a package and upload it, after successful upload it provide installation link. It can be gone through Build | create | package and select your packages > Then select your package name > Installation URL seems like https://login.salesforce.com/packaging/installPackage.apexp?p0=04t900000003mGs.
Just copy and paste that url and follow the instruction to upload.
Note: For successful package creation test class coverage must be >= 75%