Distributing your data can improve your performance by providing faster updates of the local subset of your data. It can also improve your availability. If one site in a distributed system becomes unavailable, you can continue to query and update the data at the remaining sites.
If you frequently perform queries that access multiple remote sites, you may experience some performance degradation because all of the data is at a single location. Additionally, if one of these sites becomes unavailable, you will not be able to complete this transaction until the site becomes available again.
For these reasons, a distributed model is most appropriate when you frequently query and update a distinct subset of your data from a single location, and seldom query or update the remaining portions. Oracle7 Server Distributed Systems, Volume I provides more detail on distributing your data.
Replicating your data can improve your performance by providing faster queries of all of your data. It can also provide improved availability to all of your data for queries. Even if your local site goes down, you can still access a complete copy of your data at another replicated location.
Synchronously replicating your data can decrease the availability of your data for updates, however. If one site becomes unavailable, you cannot update any other replicas until the downed site either becomes available or is dropped from the replicated environment. For this reason, you may prefer to use "near real-time" asynchronous replication, if you determine that you need to replicate, rather than distribute your data.