What are file servers?
A file server is a specific type of storage server. In simple terms, it’s a computer used to store and share files across a local area network (LAN). This means anyone with permission can access the same files, making a file server a central hub for file sharing inside a network. File servers can come in different forms. In some networks, a standard computer may act as the file server.
Most file servers run on familiar operating systems, such as a Windows file server using Windows Server, or a Linux file server built on distributions like Ubuntu or CentOS.
Where file servers are usually hosted
In practice, file servers are set up in a few common ways. Some businesses run them on-site using their own hardware, especially when all staff work from the same location. Others host file servers on dedicated or virtual servers in a data centre, which reduces the need to manage physical equipment. A cloud file server removes on-site hardware entirely and is often chosen when teams need remote access or flexible storage growth.
What can you store on a file server?
A file server can store a wide range of files and handle large amounts of storage in one central place. From photos and videos to documents and EXEs, file servers are a common multi-user platform for storing this data. This wide range of files can then be accessed by everyone on the LAN.
Why are file servers useful?
Many businesses use file servers because they keep everything in one place. Centralised file storage and file sharing make it easier for staff to find files, update them, and work on the same documents without sending copies back and forth.
A file server also helps control access to shared files. Permissions can be set so only the right people can view, edit, or delete data, while multiple users can work from the same storage system without creating duplicates. File servers are often used for shared document folders, media libraries, internal backups, and controlled file sharing with external partners.
When a file server makes sense
A file server is a good fit when several people need access to the same files, storage needs are predictable, and data access needs to be controlled centrally. It’s commonly used in offices where teams work from shared folders every day.
If your team is fully remote or storage needs change often, a cloud-based option may be easier to manage. For smaller teams, a file server may be used mainly for basic file sharing. As teams grow, access controls, backups, and performance become more important, and managing the server usually requires more planning.
Why file servers need security
If your business decides to opt for a file server, it is important to install protective software. This usually includes access controls, antivirus protection, and regular backups to protect shared storage from loss or unauthorised access. Because many files are stored in one place, file servers are a common target for attacks. We also recommend backing up your files regularly, just in case the server fails or some other disaster strikes. When creating backups, it’s best to store copies of your files in more than one location. It’s always good to have this in place.
How do file servers work?
File servers store data as standard files rather than databases, which is why they’re used for shared storage instead of complex data processing. Once you have access to a file server, it’s up to you to open and interact with the files – your computer doesn’t process them for you. Anyone with permission on the local area network (LAN) can view or edit those files.
File servers are usually accessed using standard network file-sharing protocols, such as SMB (Server Message Block) on Windows file servers or NFS (Network File System) on Linux file servers. These protocols manage permissions, file access, and simultaneous use behind the scenes.
Performance depends heavily on the network connection. File servers are typically fast on a local network, but access can slow down if many users connect at once or if files are accessed remotely over slower connections.
Types of file servers
File servers can be set up in different ways. A Windows file server is common in offices already using Microsoft tools. A Linux file server is often chosen for flexibility and cost control. A cloud file server removes the need for on-site hardware and makes remote file sharing easier.
How do multiple users access a file server?
As the main function of a file server is to be accessed by multiple users at the same time, features need to be in place to ensure that this runs smoothly. Within a file server, there are a few features that control user access:
Conflict resolution: If two people try to change the same file at the same time, the file server can manage those conflicts to help prevent accidental overwrites.
File locking: This stops multiple users editing the same file at once by letting one person lock it while they make changes.
Permission management: Access can be restricted so only specific users are allowed to view, edit, or delete certain files.
Distributed file system: Files can be copied across multiple servers or locations, which helps with availability and resilience.
The advantages of using file servers
If you do choose a file server, what sort of benefits can you expect?
Predictable storage costs: File servers are often cost-effective when teams need shared storage without per-user pricing. Once set up, storage costs are easier to forecast as your data grows.
Control over data and access: File servers let you decide exactly who can view, edit, or delete files. This level of control is useful when working with sensitive or internal documents.
Strong performance on local networks: When used on a local network, file servers provide fast access to shared files, especially for large documents and media files.
The disadvantages of using file servers
As with most servers, there are some downsides. Let’s run through a few of them:
Upfront planning is required: File servers work best when storage needs are estimated in advance. If usage grows faster than expected, upgrades may be needed.
Ongoing management: Unlike managed cloud storage, file servers require regular updates, backups, and access management, which takes time and technical effort.
Centralised risk: Storing many files in one place means security and backup practices must be handled carefully to reduce the impact of hardware failure or data loss.
What's the difference between a file server and database server?
A database server manages many other databases, while a file server is responsible for files accessible through a LAN. So, a database server and a file server are not the same thing.
File server vs Cloud server
A cloud file server stores and shares files using cloud infrastructure rather than on-site hardware. A traditional file server runs on physical equipment, either in your office or in a data centre.
Unlike consumer cloud storage tools such as Google Drive or Dropbox, a file server gives businesses direct control over how files are stored, accessed, and secured. Cloud storage platforms manage these settings for you, while a file server – whether traditional or cloud-based – is configured and controlled by your team.
Because a traditional file server depends on physical hardware, it can be more exposed to local risks such as hardware failure or site-specific outages. Cloud file servers still need security controls, but they usually include built-in backups and make it easier to add extra protection.
Scalability is another key difference. Expanding storage or performance on a traditional file server often means upgrading hardware, while a cloud file server lets you increase or reduce resources as needed, which can help control costs as your storage needs change.
Choosing between a file server and a cloud file server
A traditional file server suits teams working from a shared location with predictable storage needs. A cloud file server is often a better fit when remote access, flexible scaling, or reduced hardware management is a priority.
Frequently asked questions about file servers
Is a file server the same as cloud storage?
No. Cloud storage services are managed platforms, while a file server gives you direct control over file access, permissions, and storage setup.
Can a file server be accessed remotely?
Yes, but remote access usually requires extra setup and depends on network speed and security controls.
Do small businesses need a file server?
Some do, especially when several staff share files daily. Others may find cloud storage easier to manage.
What’s the difference between a file server and NAS?
A NAS device is a specialised type of file server designed mainly for storage, while file servers can be more flexible and run on standard server hardware.
Now that you understand how file servers work, you can decide whether they’re the right fit for your needs. If it doesn’t sound like a good option for you, we have a number of different server options available. From cloud servers to virtual private servers, you can have your pick.
