Creating an IOS native app that doesn't need to go thru the App store since only 10-20 end users will be installing it.
What is the easiest way for the end users to be able to install this application?
Do I need to cheat what is called an 'ad-hoc' provisioning profile?
Will the end users need a copy of this profile along with the app?
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Though it's possible to distribute your app using AdHoc distribution (this certainly isn't a cheat, it's by design!) or In-House distribution, both of these methods are still tied to the provisioning profiles.
The main disadvantage of that is that when the provisioning profile expires, so does the app.
Your other option is Enterprise Distribution, (I don't think this requires the provisioning profile, but I'm not certain This requires a provisioning profile too Thanks Caleb ), at a cost of $299/year.
But to answer your actual questions.
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If you're going to do an ad-hoc profile (which isn't cheating by the way), then you need to add all their devices to your account as test devices. The ad-hoc profile must then contain all their device IDs and then you would have to destribute it to them.
Easist distribution method I know of is TestFlight. There are ways to post it to a download link and upload a manifest file so all they have to do is click a link, but TestFlight is far easier in my opinion. TestFlight will also send notifications when you upload a new version to the user, so all they have to do is click a link in an email to go download the new version.
Doing ad-hoc also means the profile will expire (as will the app), and if a user gets a new device, it will have to be added to the profile and redistributed again.
Personally, I think it's easier to get it onto the app store so any number of users can download it at any time.
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You can also use TestFlight (http://testflightapp.com) to help manage the device ids and installation. Using TestFlight makes it a lot easier to manage installing ad hoc builds.
Read App Distribution Guide:Beta Testing Your iOS App. When you build an app for ad hoc distribution, the provisioning profile is included in the app bundle and installed on the device when the app is installed.
So, yes, users will need a copy of the provisioning profile in order to run the app, but there's nothing extra to download or install because the profile is included in the app bundle.