[grahar64]

Service discovery does not remove the need for load balancing.

For example, if you had three nodes, each with every service and round robin service discovery to overload the system is just a matter of receiving a difficult request every third query. No matter how good your front end load balancing is in a micro service system, if your intra-service requests are not load balanced you can have problems with overloading one node, while others are idle.

[sagichmal]

Service discovery can remove the need for load balancing, if you move load balancing logic into the client services. Have them architect their own load balancing over available instances of their dependent services.

Unless you're deploying a Smartstack-esque LB strategy, where each physical node hosts its own load balancer, then the details of what's deployed where are mostly irrelevant. You use your SD system to abstract away the physical dimension of the problem, and address logical clusters of service instances. And you rely on your scheduler to distribute service instances evenly among nodes.