Storage virtualization is a technique that combines available storage space on physical hardware with software-defined storage accessible from any endpoint. Virtual data storage, unlike dedicated disk arrays is adaptable, and offers more capacity utilization and lower risk of running out of space. It also eliminates the necessity for traditional hardware redundancies, cutting down on up-front costs and time spent deploying and upgrading storage systems.

There are several types of storage virtualization that range from host-based to network-based. Simple storage devices like single hard drives do not provide any kind of virtualization. However, more sophisticated RAID arrays serve the same function, providing multiple disks as one device to servers by stripping and replication data across them. This method has the benefit of improved I/O performance as well as a simplified method of problem identification and troubleshooting.

File virtualization concentrates on the NAS problems of location independence, by eliminating the dependence on the physical directory or file system. This allows companies to optimize storage capacity, consolidate server resources and perform non-disruptive migrations of files.

There are two kinds of virtual data storage solutions: VDRs and cloud storage. Virtual data rooms (VDRs) are utilized by companies to streamline their due-diligence procedures as well as fundraising, mergers and acquisitions or collaboration in a secure setting. They are generally accessible 24 hours a day and provide various tools for streamlining project management as well as tracking users and gathering data. Contrary to this, a cloud storage system allows data to be backed up additional info remotely in the cloud. Although this can be scalable however, users have to entrust their data to a third party which can raise privacy concerns.