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In moving both an Oracle DB and it's corresponding dataguard box both to a Virtual Environment, (Same site, same VM Infrastructure) Does it make sense to keep the dataguard setup? The VM Infrastructure has a pretty robust backup procedure, but nothing offsite that is live. I'm having to make a somewhat uneducated decision here as my vendor is telling me yes it's recommended, but my OIT department is telling me it's just a waste of resources since dataguard would only be good in the event of a hardware failure. But any catestrophic failure of the VM infrastructure would take out both the main and standby DB at the same time anyways (since they both reside on the same VM Infrastructure)

I understand there is a lot more to it than just this, but excluding a hardware failure, under what circumstances might you still need the standby DB (assuming no one maliciously or accidentally does irreversible to the main database instance or it's OS)

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As you mentioned "standby", I assume that you mean active - passive DataGuard. In this configuration there is nothing much to do.

I would agree more to your OIT department, as the main reason of having DataGuard for catastrophic hardware failure. As all your eggs are in this one VM infrastructure basket, there is no additional values of having DataGuard in place. Only when you have offsite DR infrastructure it will make sense to use DataGuard.

Using VMWare ESX you already have infrastructure needed to handle failures that is not catastrophic VM infrastructure failures.

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