Storage virtualization is the technique of combining available storage space in physical hardware into software-defined storage accessible from any endpoint. Virtual data storage, unlike dedicated disk arrays is more scalable, which means greater capacity utilization and a lower possibility of running out space. It also eliminates the requirement for traditional hardware redundancies and reduces upfront costs and the time spent in deploying and upgrading storage systems.

There are several types of storage virtualization, ranging from host-based to network-based. Simple storage devices, like single hard drives do not offer any type of virtualization. However, more advanced RAID arrays fulfill the same purpose, by providing multiple disks as a single unit to servers through stripping and redistributing data across them. The benefit of this approach is improved performance in I/O as well as a simplified approach to troubleshooting and determination of issues.

File virtualization focuses on the NAS issues of location independence, by eliminating the dependence on the physical directory system or file system. This enables enterprises to optimize storage utilization, consolidate server resources and perform non-disruptive file migrations.

There are two kinds of storage solutions for virtual storage: VDRs (virtual data rooms) and cloud storage. VDRs, also called virtual data rooms, are used by companies seeking to streamline their due diligence processes, fundraising or mergers and acquisitions by providing collaboration in a safe environment. They are typically accessible 24/7 and offer a range of tools to streamline the management of projects, tracking users, and data collection. Cloud storage lets data be stored remotely in the cloud. While this is scalable however, users must trust their data to a third-party which can raise privacy concerns.

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