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I am trying to install Oracle Client on a Windows Server 2008 64-bit. To some this might not be rocket science but I can't understand what the options under the install screen "Specify Home Details" mean.

The defaults given suggest that I use Oracle Base and install software under my own account name. It also suggests that each user should have a separate Oracle Base. This seems counter intuitive to me. I am doing a server install after all. All I want to use the installation for is to connect to an Oracle Database from Reporting Services.

Can I safely ignore this and just accept the defaults? What are the implications if I change the location to a common directory?

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You can safely change this to a common directory, and I would recommend it because more likely then not your account space will be small and less accessible to other users.

I'm a bit old school so my 11g client installs go in C:\oracle\product\11.2.0 as the ORACLE_HOME (with C:\oracle in this case as ORACLE_BASE). This works for Windows XP, 7 and 2008 server without any issues.

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