ODI Staging Area Confusion

Hi,
I am following an ODI Tutorial from http://www.oracle.com/webfolder/technetwork/tutorials/obe/fmw/odi/odi_11g/odi_project_ff-to-ff/odi_project_flatfile-to-flatfile.htm. Basically it is writing a flat file to another flat file. My question in this case where will be the staging area?
in the article it is using knowledge modules IKM SQL to File Append and LKM File to SQL; based on the knowledge modules used it means staging area is in Oracle btu Idon't know why it is so.
Please help me in this regard and I will be very grateful.
Best Regards,

Your staging area has to be a technology with transformation capabilities i.e a relational DB. This could be a dedicated database such as SQL Server or Oracle or an in memory database such as SUNOPSIS Memory Engine. As both your source and target are files and don't have these capabilities you will have to choose the staging different from target option in your interface and then select the appropriate relational technology available in your ODI architecture.
The 2 inerfaces you have mentioned are not technology specific which means that you can choose any relational technolgy with SQL capabilities as your Satging Area, it does not have to be Oracle

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