Storage virtualization is an approach that combines available storage space on physical hardware with software-defined storage that can be accessed via any device. Contrary to dedicated disk arrays, virtual data storage is scalable and has a higher capacity utilization and lowers the risk of running out of space. It also eliminates the traditional redundancies in hardware and reduces up-front costs and the time used in the deployment and upgrade of a storage system.

There are many kinds of storage virtualization, ranging from host-based to network-based. Simple storage devices, such as single hard disk drives, do not provide any form of virtualization. However, more sophisticated RAID arrays share a similar function: they present multiple physical disks to servers as a single device striping and replicating data across them. This approach offers the advantage of a higher I/O performance as well as a simplified method of troubleshooting and identification of problems.

File virtualization focuses on the NAS (network-attached storage) challenges of location independence by removing dependency on the actual physical file system or the location of the directory. This enables enterprises to optimize storage and server resources, and also perform non-disruptive migrations of files.

There are two kinds of virtual storage solutions that are available: VDRs (virtual data rooms) and cloud storage. VDRs, also referred to as virtual data rooms, are employed by companies seeking to streamline their due diligence processes, fundraising, or mergers and acquisitions by enabling collaboration in a secure setting. They are typically accessible 24/7 and offer several tools to simplify project management, tracking users, and data collection. However, a cloud storage service allows data to be stored remotely in the cloud. Although this can be scalable however, users must trust their data to a third-party which could raise privacy concerns.

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