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Dynamic Logon Load Distribution 
Purpose
Logon load distribution allows you to dynamically distribute the SAP users to application server instances. You can increase the efficiency of individual workgroups by setting up multiple logon groups that consists of one or more application instances.
You can assign one or more application servers to be available for certain workgroups or specific application processing. When users log on to the system, they are automatically logged on to the server that currently has the best performance statistics and/or the fewest users.
Logon groups are configured and maintained centrally from within the SAP system. Every application server group is assigned maximum threshold values for the response time and the number of users that can log on to a particular group server. Especially important logon groups with time-critical transactions can be assigned to application servers with improved response times. Setting up logon groups means that the activities of each server become more predictable, which allows you to tune each specific server with respect to the working applications.
To log on to an SAP sytem, the user must only know the name of the SAP system and the logon group. The host name and system numbers are no longer needed when you have logged on.
See Also:
SAP Logon Configure Logon Groups Configure Dynamic Logon Load Distribution for RFC Calls Questions and Answers: Dynamic Logon Load Distribution