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What is Application Instance

Application instance is a provisionable entity. It is a combination of IT resource
instance (target connectivity and connector configuration) and resource object
(provisioning mechanism). Creating and managing application instances are performed
by using the Oracle Identity System Administration. Once Created Application Instance can be requested from the catalog.
Application instances can be connected or disconnected. 

Connected application instance-It has a connector defined for the provisioning of entities. Account is created in the target system real time in case of connected Application Instance.
Disconnected application instance -It is used for the provisioning of a disconnected resource, for which a connector is not defined, and therefore, the provisioning is performed manually by the administrator. A mail trigger system can also be attached which sends the account creation/modification/deletion mails to the application owner.

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