You must specify the directory in which the Oracle Database software is installed, or the location where the product binary files are copied from the installation media. You must choose a location that has enough disk space to contain the software and is accessible by the operating system user performing the installation.
You also specify the location of the Oracle base directory, which is used by all Oracle software products installed on the server. The first time you install Oracle software on a server, you are prompted to specify the location of the inventory directory, called oraInventory. This directory provides a centralized inventory of all Oracle software products installed on the server. You should use the same value for the Oracle inventory directory each time you perform an Oracle software installation on the server.