Compartments are logical structures in Oracle Cloud Infrastructure Identity and Access Management (IAM) that help you to organize and control access to your cloud resources.
A compartment contains resources, such as database instances, virtual cloud networks, and block volumes. Think of a compartment as a logical group and not a physical container. It acts as a filter for what you are viewing. Whenever you add a resource in Oracle Cloud Infrastructure, you create it in a particular compartment. If needed, you can move resources from one compartment to another. Users require permissions to access compartments and the resources in them.
When you sign up for Oracle Cloud Infrastructure, Oracle creates a tenancy for you, which is considered the root compartment. The root compartment holds all of your cloud resources. Inside the tenancy, you can create compartments based on your organization's needs. For example, you might create a compartment to store all of the resources for a financial application. To control access to resources in each compartment, a member of your tenancy's Administrators group creates policies. Ultimately, the goal is to ensure that each person has access to only the resources they need.
The following Oracle Cloud Infrastructure documentation discusses how to create compartments in Oracle Cloud Infrastructure Identity and Access Management (IAM):