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This paper describes a prototype implementing a high degree of fault tolerance, reliability and resilience in distributed software systems. The prototype incorporates fault, configuration, accounting, performance and security (FCAPS) management using a signaling network overlay and allows the dynamic control of a set of nodes called Distributed Intelligent Managed Elements (DIMEs) in a network. Each DIME is a computing entity (implemented in Linux and in the future will be ported to Windows) endowed with self-management and signaling capabilities to collaborate with other DIMEs in a network. The prototype incorporates a new computing model proposed by Mikkilineni in 2010, with signaling network overlay over the computing network and allows parallelism in resource monitoring, analysis and reconfiguration. A workflow is implemented as a set of tasks, arranged or organized in a directed acyclic graph (DAG) and executed by a managed network of DIMEs. Distributed DIME networks provide a network computing model to create distributed computing clouds and execute distributed managed workflows with high degree of agility, availability, reliability, performance and security.