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Performance impact of creating a partitioned index

How effective is it to create a partitioned index in Oracle8i? The table is huge and has not been partitioned earlier and still remains in a lot of blocks across the tablespace. The table is a transactional/warehouse table where approximately 40,000 rows lie down in active transactional and the rest all act as history for reporting purposes. If partitioning is a good option, which type of partitioning will be of a good for the given table for performance?
First consider how to partition the table. If you can partition on a key that separates your active transactional data from the history, do so. The question of whether to partition indexes hinges on what columns are usually mentioned in query predicates. I'd recommend reading up on partitioning strategies; look in the Oracle docs and on MetaLink for some guidelines.

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