Directory Structure
Each main Oracle-oriented directory on each disk consists of a string ('u' or 'disk' by default) with a unique identifier (often a 2-digit number) appended, for example: /u01 or /disk07. Administrators store data and application-code within these directories, and Oracle products reference these directories. If desired, one can use symbolic links to map the main directories into physical disk storage.
Within each main directory a number of subdirectories can exist. Commonly-used subdirectories include:
./app/for applications./oradata/for data
For example: /u01/app/oracle/product/10.2.0/bin/ may contains the binaries for Oracle 10.2.0. If a system has an Oracle Database instance called foo, then /u01/app/oracle/admin/foo/ may contain information about that foo's datafiles: this could point to a collection of datafiles in /u03/oradata/foo, etc.
Read more about this topic: Optimal Flexible Architecture
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