In the next step, it will ask for the database details. Choose DEV for database system ID and also type in the host name (name of the NT Machine). In my case it is ”CHALAKI”
Click next. The following screen will appear. Here choose Local Installation
Note the name of the Instance DVEBMGS00 indicating it has D (Dialog work process), V (Update work process), E (Enqueue work process), B (Background work process) and MGS (Message Server) and appended with the instance id (00 in this case). Also notice that the total RAM is divided into two parts and 60% is by default allocated to instance. The other can be used for Oracle RDBMS server. Of course you can modify these numbers and allocate according to your wish.
Choose how much RAM you want to use for the SAP systems instance here. More info here
Above, you will choose 3600 for message port. Other ports are automatically allocated
This is the common transport directory for all the R/3 Systems which will centrally manage your transports. You can simplify the maintenance of the transport directory by maintaining the directory at a single point. The advantage of a central transport host is that you have to maintain only one central entry when moving the transport directory to another host. To do this, specify the name of the central transport host, where your central transport directory is located, in the Domain Name Server (DNS) for all Windows systems.
In the next screen choose the drive for installing SAP R/3 4.7.2 central instance.