The difference is embedded vRO lives completely inside the vRealize Automation appliance whereas external vRO is a separate appliance you have to deploy.
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But does both have same number of workflows ? or external vRO have more workflows ?
The internal vRO will have more because it ships with more plugins than the external, stand-alone vRO.
So why should we go for external VRO .. if internal is already present ??
If you're using vRA on 7.2 or higher, you should use embedded in almost every case.
There are several reason.
a) You have an vRA structure that spans multiple Continents (or you have a low latency) and therefor your connection to the vROs that might be doing something to other vCenters (in other continents) is bad. In this case you would use external vROs to reduce latency and bandwidth.
b) You have several Customers and you are required to shield vRO connection between Customers. Meaning. You connect vRO to vCenter Customer A and then also to vCenter Customer 2. That would mean that vRO con do something in BOTH vCenters and that may prove to be a liability problem. And 7.4 MultiTenency didnt fix that problem.
c) You have a LOT of XaaS stuff going in your vRO and vRO itself isn't able to handle it....in that case you would put a vRO cluster with a load balancer to use.
And BTW: vRO internal comes with the same amount of Library elements then external...you also can always add more libary stuff...Check out:
VRealize Orchestrator Cookbokk 2nd Edition