Instance Profiles
Instance profiles provide an application server with additional configuration parameters that complement the settings in the default profile. Typically, these are parameter settings that are adapted to the instance according to the required resources and applications. They also define the available instance resources (main memory, shared memory, roll memory, and so on), and how to allocate memory to the SAP application buffers.
You can choose any name for an instance profile. The SAP naming convention has the following structure: <SID>_<Instanzname> or <SID>_<Instanzname>_<Hostname>.

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If you want to start application servers on several computers using identical parameter settings, you can use the same instance profile. It is generally not necessary for each application server to have its own instance profile. Instance profiles are also called system profiles.