Azure Files 101: What It Is, When to Use It, and Why It Matters

Why Azure Files Matter

As organizations grow and adapt to an increasingly digital world, relying solely on on-premises solutions can limit flexibility, scalability, and accessibility. That’s where Azure Files comes in. This cloud-based file-sharing service enables seamless access to data from anywhere—empowering hybrid and remote workforces, streamlining IT maintenance, and improving productivity.

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Some key benefits of moving to Azure Files include:

  • 24/7 access to your data from virtually any location
  • Built-in backup and redundancy options
  • Reduced overhead from physical device maintenance
  • Reliable file access across systems using tools like Azure File Sync

Whether you’re supplementing or replacing an on-premises file server, Azure Files offers a flexible path toward cloud readiness without requiring users to learn a new system.

What is Azure Files?

Azure Files is a fully managed cloud file share that functions much like the familiar file shares hosted on traditional Windows Servers. It supports standard protocols like SMB (Server Message Block) and NFS (Network File System), making it compatible with Windows, macOS, and Linux.

By eliminating the need for on-premises file servers, Azure Files reduces physical device management while enabling secure, scalable, and user-friendly file sharing across your organization.

Azure Files Storage Models

Azure Files offers different deployment models to meet various performance needs and budget considerations. These are determined by the type of Azure Storage Account you create.

Provisioned v1 model

This model uses premium solid-state drive (SSD) storage. With this option, you define the exact amount of storage upfront—say, 2TB—and that becomes your limit until additional storage is purchased. Performance, including IOPS (Input/Output Operations Per Second) and throughput (which determine the speed and volume of data transfers), is fixed based on the size you’ve provisioned.

Provisioned v2 model

This model relies on standard hard disk drive (HDD) technology. It allows more customization, letting you define not only the amount of storage but also the desired IOPS and throughput. These parameters shape your pricing and can be adjusted later. Microsoft also offers recommended performance settings (disk speed, connection speed) during setup, based on typical usage patterns.

Pay-as-you-go

For more flexibility, there’s the Pay-as-you-go model, which also uses HDD technology. Instead of setting limits in advance, you’re billed dynamically based on actual usage—both in terms of storage space and user activity. While this model can be unpredictable and harder to budget for, it’s ideal for organizations with fluctuating needs or for those just getting started who aren’t yet sure how much storage they’ll require.

☝️ Note: The pay-as-you-go model does not offer price predictability. One key drawback is that your organization is billed for all usage, including accidental overages. If a user uploads excessive data—intentionally or not—the associated costs are your responsibility. Microsoft’s billing in this area is strict, with little flexibility for mistakes.

Built-in Data Safety

Azure Files provides multiple redundancy options to help protect your data from loss or corruption. The more redundancy, the higher the cost—but also the greater the resilience. We’ll go through the options from least to most protection.

Locally-redundant storage (LRS)

LRS keeps three copies of your data within a single Azure data center, guarding against hardware failures but not against site-wide disasters. This protects against any loss due to hardware faults or file corruption. However, if a disaster such as a fire were to occur and the data center was destroyed, the data could be lost alongside it.

Zone-redundant storage (ZRS)

ZRS improves on LRS by distributing those three copies across separate data centers within the same Azure region, providing additional protection in case one facility experiences an outage.

Geo-redundant storage (GRS)

GRS, for even broader coverage, replicates your data to a second region entirely, storing it three times in the primary region and three more in the secondary—though any data not yet copied to the second location could be lost in the event of a sudden failure.  

Geo-zone-redundant storage (GZRS)

GZRS is the highest level of storage security. A mix of both ZRS and GRS, all files are copied to three different data centers within a region. Once this action is completed, they’re then copied three more times to three different data centers in the secondary region. This ensures maximum continuity, even in the rare event of an entire region going offline.

Azure Files Storage Options Matrix

When is Azure Files the Right Fit?

If you’re currently using on-premises file servers and want a smoother transition to the cloud, Azure Files is a natural next step. It lets your team work with files in familiar ways—without the need to completely restructure file access or retrain users.

Use cases include:

  • Migrating or supplementing legacy on-prem file servers
  • Supporting applications that depend on shared file storage
  • Enabling scalable and remote access without rebuilding file architecture

What about offline access?

Moving to the cloud doesn’t mean losing access when the internet goes down. With Azure File Sync, you can configure a Windows Server to cache your cloud files locally. This hybrid model ensures users can still access and edit files even during internet outages, with changes synced back to the cloud once connectivity is restored.

Azure File Sync requires an on-prem Windows Server, but it doesn’t necessarily need to store your full file set. There are many ways to configure it so it may not require as much storage as what is being used and uploaded. In this way, it acts as a built-in redundancy option, providing another layer of protection for business continuity.

Wrapping It Up

Azure Files offers a flexible, scalable solution for organizations looking to modernize their file storage without overhauling existing workflows. With multiple deployment models and redundancy options, businesses can tailor their setup to match performance needs and budget. Whether you’re transitioning from on-premises infrastructure or building a hybrid environment, Azure Files makes it easier to ensure secure, accessible, and resilient file sharing.

If you’re unsure which configuration is right for your business, Advisicon can help you navigate your options and build a solution that supports both your present operations and future growth. Contact us today!