server side load balancing / fail over vs client side on 2 node RAC

Hi 

We have a 2 node RAC (10g Release 2) on Linux

Appended below is the result from the query against dba_services

SQL> select name,failover_method,failover_type,failover_retries,goal,enabled from dba_services

NAME            FAILOVER_METHO FAILOVER_TYPE  FAILOVER_RETRIES GOAL         ENA

--------------- -------------- -------------- ---------------- ------------ ---

SYS$BACKGROUND                                                 NONE         NO

SYS$USERS                                                      NONE         NO

app                                                            NONE         NO

In the tnsnames.ora on the application server, the entry is as follows

APP =

  (DESCRIPTION =

    (ADDRESS = (PROTOCOL = TCP)(HOST = node-1-VIP)(PORT = 1555))

    (ADDRESS = (PROTOCOL = TCP)(HOST = node-2-VIP)(PORT = 1555))

    (LOAD_BALANCE = yes)

    (CONNECT_DATA =

      (SERVER = DEDICATED)

      (SERVICE_NAME = app)