Defining a content server is not mandatory. OLM can play content associated with any URL. This can be a third-party web server, or your own web server, inside or outside a firewall.
However, if you define one or more content servers within OLM, you can transfer content to the server through the OLM interface, with no requirement for an ftp server, using the Upload and Import utilities:
Load files from a local machine to a content server--Upload (on folder or learning object details page)
Load files contained within a SCORM 1.2 or SCORM 2004 zip file from a local machine to a content server--Import (on folder or learning object details page)
You can use Oracle WebCenter Content (OWCC), formerly Oracle Universal Content Management as a content server for OLM content.
An OLM content server does not automatically provide any additional security to your content. Learners can access the content direct from any browser, if they know the URL, unless you explicitly protect the server, using operating system or software authentication.
Suggestion: Security Suggestion: If the OLM content server is an Oracle Application Server (Oracle iAS), then disable the `Allow Directory Browsing' flag in the 10giAS server. This will ensure that learners can access and play the course but cannot browse the content storage.