Techopedia explains Client

The SAP client concept allows an organization to split a system into logical sub
units. Clients may operate as separate business units, where all data is stored
in a common database. Access rights for each client are defined during the insta
llation process. Client specific data includes user master data (including autho
rizations and user groups), data customization and application/business data.
The number of clients in a SAP system directly influences the following:
Buffer: The number of clients impacts buffering demand. An example is main memor
y usage.
Upgrade: Different activities are affected by SAP upgrades, where run timers are
longer, depending on the number of clients.
SAP also defines clients with the following roles, as required in a complete lan
dscape.
Client CUST: Used for making developments and serving other customer-specific re
quirements. The SAP transport management system is used to move CUST client chan
ges to other clients.
Client QST: Defined for testing and verifying various applied changes.
Client PRD: Used for production and business activities.