Storage virtualization is a method that combines available storage space on physical hardware with software-defined storage, which can be accessed by any device. In contrast to dedicated disk arrays virtual storage for data is scalable, and offers better capacity utilization and less risk of running out of space. It also eliminates the requirement for traditional hardware redundancies, cutting down on up-front costs and the time spent in deploying and upgrading storage systems.

Storage virtualization may be hosted or network-based. Simple storage devices like single hard drives do not provide any virtualization. However, more sophisticated RAID arrays perform the same function, offering multiple physical disks as one unit to servers through stripping and redistributing data across them. This approach has the advantage of a higher I/O performance as well as simplified diagnosis and troubleshooting.

File virtualization is primarily focused on the NAS challenges of location independence by eliminating the dependence on the physical directory or file system. This lets enterprises optimize storage, consolidate server resources, and also perform non-disruptive migrations of files.

There are two types of storage solutions for virtual storage that are available: VDRs (virtual data rooms) and cloud storage. VDRs, also called virtual data rooms, are utilized by companies looking to streamline their due diligence processes, fundraising, or mergers and acquisitions by providing collaboration myvirtualstorage.blog/how-much-does-it-cost-to-use-a-data-room/ in a secure environment. They are typically accessible 24/7 and provide a variety of tools to simplify project management, tracking users, and data collection. In contrast, a cloud storage solution permits data to be stored remotely in the cloud. It is scalable but users must entrust the data to a third party which can raise privacy concerns.