Modern data storage relies on three main approaches: object storage, file storage and block storage.
Each storage system serves different use cases, with distinctive strengths and limitations depending on the application and workload requirements.
Knowing the differences between these options helps enterprises choose tailored, scalable storage solutions that match today’s needs and fuel long-term growth.
Object-based storage systems divide data into separate, self-contained units stored in a flat environment, with all objects at the same level. There are no folders or subdirectories like those used with file storage.
Moreover, object storage does not store all data together in a single file. Objects also contain metadata, which is information about the file that helps with processing and usability. Users can set the value for fixed-key metadata with object storage, or they can create both the key and value for custom metadata associated with an object.
Instead of using a file name and path to access an object, each object has a unique number. Unlike with file storage, you must use an application programming interface (API) to access and manage objects. Objects can be stored locally on computer hard disks and public cloud servers.
This API-based approach has made object storage ideal for cloud environments, where it has largely replaced traditional tape storage systems due to its scalability, accessibility and management advantages.
While tape storage was historically important for backup and archival purposes, cloud-based object storage now provides more flexible and accessible solutions for long-term data retention. Providers of leading object storage solutions include AWS's Amazon S3, Google Cloud Storage, Microsoft Azure Blob Storage and IBM Cloud® Object Storage.
Check out the following video for a deeper dive into object storage.
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File storage is a method of storing and organizing data in a hierarchical structure through files and folders (or directories). The application saves data in a single file and determines the file extension type based on the file format (.jpg, .docx, .txt).
When you save a document on a corporate network or your computer’s hard disk, you are using file storage.
Files can also be stored on a network-attached storage (NAS) device. These devices are designed for file storage, making them a faster option than general network servers. Other examples of file storage devices include cloud-based file storage systems, network drives, computer hard disks and flash drives.
The hierarchical structure, with its folders and subfolders, makes it easier to find and manage files. To access a file, the user selects or enters the path for the file, which includes the subdirectories and file name. Most users manage file storage through a simple file system, such as a file manager.
Examples of data typically saved through file storage include presentations, reports, spreadsheets, graphics, photos and other documents. File storage is familiar to most users, allowing them to set data access rights and limits. However, managing large numbers of files and hardware costs can become a challenge.
The following video provides a closer look at both file and block storage.
Block storage involves splitting data into fixed blocks and then storing it separately with distinctive identifiers. The blocks can be stored in different environments; for example, you might save one block in Windows and the rest in Linux. When a user retrieves a block, the storage system reassembles the blocks into a single unit.
Block storage is the default storage for both hard disk drives and frequently updated data. You can store blocks on storage area networks (SANs), network-attached storage systems (NASs), solid-state drives (SSDs) or in cloud storage environments.
Block storage systems have been a mainstay in the tech industry for decades. While organizations increasingly adopt object storage for large-scale unstructured data and file storage for collaboration needs, block storage remains essential for high-performance applications requiring consistent, low-latency access. The choice between storage types depends on specific workload requirements rather than one approach replacing another.
When determining which type of storage to use for different types of data, consider these factors:
The correct storage mix depends on your specific operational needs and data characteristics. Evaluate your data volume, performance requirements, budget constraints and growth projections when planning your storage architecture.
Strategic storage selection guidelines:
Most organizations implement hybrid approaches, combining storage types strategically. For example, a company might have the following usage:
Data storage continues to experience tremendous growth. A Fortune Business Insights study projects the global data storage market size to grow from USD 255.29 billion in 2025 to USD 774.00 billion by 2032. This growth reflects a compound annual growth rate (CAGR) of 17.2% during the forecast period.2
The boundaries between storage types are shifting. File and object storage are converging, with unified software platforms that combine hierarchical organization with scalable metadata capabilities. Meanwhile, object storage is gaining intelligence through AI integration, automatically classifying and tiering data based on usage patterns.
Looking ahead, adopting the right mix of storage approaches is expected to be key to building storage architectures that scale efficiently with evolving workloads and data complexity.
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1. Untapped value: what every executive needs to know about unstructured data, IDC, August 2023
2. Data Storage Market, Fortune Business Insights, 14 July 2025