Answer / anand

Logon group is mainly used for load balancing. We can group
the users like FI users, HR users, BI users and assign
everyone to specific instances(application servers) in the
system. Logon group is created using SMLG and we got
configure saplogon.ini and sapmsg.ini for assigning to
specific instances.

Answer / hari

The main use of logon group is for load balancing for the users and more over here the message server plays a key role and the main use of message server is that it identifies the least loaded dispatcher and allocates the request to that dispatcher 
The logon group is defined by the tcode SMLG 
here u need create a group name and select the instance
In the gui screen we need to select group/server selection and here u need to define the sid and hostname and no need to define the instance number the instance number will be displayed by selecting the sid 

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