Centralized Installation - single database where the EBS Source applications for the OLTP transactions and setups used by VCP applications are all on the same database. Data Collections moves the data from these tables for INV, PO, BOM, WIP, OE, etc from these base tables to the MSC tables where this data can be used by our applications.
Distributed Installation - Two (or more) databases located on different machines. One is the EBS Source Instance where all OLTP transactions and setups are performed.The APS Destination is where Data Collections process is launched and uses database links to communicate and move the data to the MSC tables in the APS Destination.
Advantages of Distributed Architecture:
1. The processing performed for Planning in ASCP, IO, DRP, etc. can take huge amounts of memory and disk IO. This can slow down the OLTP processing while the plan processes are running. It is not unusual for large plans to consume anywhere from 5-20+ GB of memory while running and move millions of rows into and out of tables to complete the planning process.
2. It is possible to have APS Destination on different release.
APS Destination could be 12.1 with EBS Source running 11.5.10 or 12.0.6
3. It is possible to have more than one EBS Source connected to the APS Destination.