more info:

Comparing alternatives: Images and Services on Local Disk v. Domains Installed on the WebLogic Administration Server

Use the information in the next table in deciding when to use available alternatives.

  Standard WebLogic Feature Pack: NFS-mounted images and domains Alternative to NFS: images and services on local disk >Alternative to the service matrix: domains installed on the WebLogic Administration Server Combining an image on local disk with a domain installed on the WebLogic Administration Server Combining an image on local disk with a domain installed inside the base image on the WebLogic Administration Server
How to configure Image: "Perform local installation" = "n"

Service: "Use a pre-existing domain" = "n"
Image: "Perform local installation" = "y"

Service: "Use a pre-existing domain" = "n"
Image: "Perform local installation" = "n"

Service: "Use a pre-existing domain" = "y"
Image: "Perform local installation" = "y"

Service: "Use a pre-existing domain" = "y"
Image: "Perform local installation" = "y"

Service: "Use a pre-existing domain" = "y"
How the domain is mounted or installed on the Administration Server WebLogic Feature Pack mounts the domain from the service matrix onto the Administration Server. WebLogic Feature Pack copies the domain onto the Administration Server from the service matrix if it is not already present. The administrator copies the domain into an instance-specific directory on the Administration Server or mounts the domain on the Administration Server from a shared file system.

The domain in the service matrix is not used for configuration or at run time.
The administrator copies the domain into an instance-specific directory on the Administration Server or mounts the domain on the Administration Server from a shared file system.

The domain in the service matrix is not used for configuration or at run time.
The administrator installs the domain on the image host prior to capturing the image or during personalization.

The domain in the service matrix is not used for configuration or at run time.
Implications for Administration Server node replacement Any changes to the domain are saved and used across Administration Server node replacement. WebLogic Feature Pack recopies the domain from the service matrix when the Administration Server node is replaced; any changes that were made to the domain on the Administration Server are lost. Any changes to the domain are saved and used across Administration Server node replacement. If the domain was mounted from a shared filesystem: any changes are saved and used across Administration Server node replacement.

If the domain was copied to the Administration Server node: any changes that were made to the domain on the Administration Server are lost.
Changes made during personalization are saved; any changes made after personalization are lost.

Related Articles

Alternative to NFS: Images and Services on Local Disk When Using WebLogic Feature Pack
Alternative to the Service Matrix: Domains Installed on the WebLogic Administration Server