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Yes, that's correct. Direct mode (preferred) when application and TimesTen are on same machine. Unix domain socket and shared memory IPC for local client/server (only for special use cases since direct mode is faster and preferred) and normal TCP/IP client/server (local or remote).
The exact detail on how the application connects depends on which API it is using (ODBC, OCI, Pro*C, JDBC, ODP .NET). For ODBC and JDBC you need to specify a datasource name and use the corresponding driver (direct mode driver or client driver). For OCI this is all configured through SQL*Net and TNSNAMES.ORA and for ODP .NET I can't recall without looking it up. Please consult the TimesTen documentation for the relevant API to get full details.