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What is SAN, NAS or Cloud Storage?

If you’ve been looking into storage for your business lately, you’ll have come across the acronyms SAN, NAS, and Cloud Storage. But what are they, and which do you need?

In this Westway IT guide, we’ll give you a handy breakdown of each, covering the benefits and what to consider.

What is a Storage Area Network (SAN)?

Storage Area Network (SAN)

noun

A high-speed, dedicated network that provides block-level storage to several individual servers, typically used in data centres or virtualised environments.

Applications and devices don’t necessarily “know” they’re using shared storage from a separate server. From their perspective, SAN behaves like a local drive, just backed by enterprise-grade hardware.

Where SAN is typically used:

  • Virtualised server environments
  • High-performance databases
  • Line-of-business applications needing low latency
  • Businesses running data at scale

Why businesses choose SAN:

  • Reduces the costs of localised NAS options,but gives a higher performance
  • Strong resilience and redundancy options
  • Centralised management of server storage
  • Scalable capacity as workloads grow

What to consider:

SANs are often the backbone of on-premises data centres, particularly where uptime and performance are non-negotiable. Because of this, you should expect a larger upfront investment than with other storage solutions.

Systems like this will also require specialist configuration and ongoing management.

What is Network Attached Storage (NAS)?

Network Attached Storage (NAS)

noun

A file-level storage device connected to a local area network, granting multiple users and systems access to shared data over standard network protocols.

A NAS system is purpose-built shared file-level storage designed to hold files that teams need access to and that do not require a high-performance database. Users connect directly to shared folders over the network, typically via protocols such as Server Message Block (SMB) or Network File System (NFS).

Where NAS is typically used:

  • Shared company file storage
  • Backup targets
  • Archiving internal data

Why businesses choose NAS:

  • Relatively simple to deploy
  • Cost-effective for small and mid-sized businesses
  • Easy file sharing across teams and locations
  • Centralised control of access permissions

What to consider:

NAS is often the most effective option for structured file sharing without the cost or complexity of a full SAN environment. However, they can quickly become bottlenecks if the system isn’t large enough for your needs, slowing your team’s productivity.

What is Cloud Storage?

Cloud Storage

noun

A model of data storage in which information is hosted in off-site data centres and accessed over the internet, typically on a subscription or consumption-based pricing model.

With cloud storage, your data is stored in geographically distributed data centres managed by a third-party provider. Capacity can usually be scaled up or down as required.

Access can often be integrated into backup systems or cloud-hosted applications.

Where Cloud Storage is typically used:

  • Remote and hybrid work environments
  • Off-site backup and disaster recovery
  • Long-term archiving
  • Cloud-first strategies

Why businesses choose Cloud Storage:

  • Flexible scaling without purchasing hardware
  • Reduced on-premise infrastructure
  • Operational expenditure rather than a capital investment

What to consider:

Cloud storage shifts responsibility for physical infrastructure away from the business, but governance and data ownership still sit with you, so you need to be aware of compliance and regulatory requirements.

Storage and back-ups are always dependent on connectivity.

 


John Fisher

John Fisher

Managing Director, Westway IT

John is the founder of Westway IT and works directly with small businesses across Gloucestershire to keep their IT secure, productive and stress-free.

With a BSc in Computer Science and hands-on experience supporting businesses from 1 to 40 users, he specialises in cyber security, Microsoft 365 and business automation.

An award-winning MSP owner and active member of the global IT community (including GTIA), John focuses on solving real business problems, not just technical ones.

Published: 28 April 2026 | Last Updated: 28 April 2026