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Advantages of reorganizing an Oracle database

What are the advantages of reorganizing an Oracle Database other than freeing up space that was allocated to that particular table or tablespace? We are currently running SAP with an Oracle 9i Database. Our current database size is 1,770,063,192KB. I know with other databases, reorganization of the database has been a big factor with overall performance. But, I have been told that it is not that important with an Oracle Database.
Oracle has greatly improved database space management in the last few releases, and it's also been demonstrated pretty convincingly that performance does not suffer just because a table or index consists of multiple extents, unless the number of extents is very high (on the order of 10,000 or more). If your database is performing adequately, my advice is not to worry about it; if your database is not performing adequately, your first task is to identify the source of the problem using trace and other diagnostic data. If disk I/O is a bottleneck, you'd then want to drill down to find out why; in most cases, though, this is caused by application inefficiencies, not physical storage layout.

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