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Do I need the -g option for SDO_GEOMETRY layers in ArcSDE?
Some ArcSDE administration commands; for example, sdelayer -o add use the '-g' option to specify particulars for creating a spatial index. When ArcSDE stores geometry in Oracle’s SDO_GEOMETRY data type, three types of spatial indexes are available: RTREE, FIXED (tessellated) and HYBRID, with aspects borrowed from RTREE and FIXED. Since the release of Oracle 9i, Oracle and ESRI have recommended using RTREE spatial indexes.
In the ArcSDE administration commands that accept the '-g' option, use "-g RTREE" for SDO_GEOMETRY layers unless there is a good reason to use another type of spatial index. For specific information about the characteristics and suitability of each of these spatial index types, refer to the Oracle Spatial Users Guide and Reference.
With SDO_GEOMETRY, it is not possible to use the grid-based spatial index used with ArcSDE compressed binary storage.