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I wonder if you can imagine, or have had the experience of the application guys people calling with anger and panic in their voices saying, "The database is so slow, you've got to speed it up."

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Doing single row inserts and committing after each is very inefficient. There is a lot of time wasted on network communication which is why the database is mainly idle. When the application thinks it's running full speed ahead, it is actually waiting mainly on network communication and commits. If we commit less and batch the work we send to the database, reducing network communications, we will run much more efficiently. Changing Change the code to: 

begin

for i in 1..1000 loop insert into foo values
('a');
–commit;
end loop;
end;

/

commit;

This change improves the communication delay and now we get a fully loaded database but we run into database configuration issues.

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