RAID arrays can be done in two main ways with Windows. You can either...
A. Use an actual RAID controller such as a Promise FastTrack series.
B. Set a raid array up using technology built within Windows.
Usually controllers work best and are recommended since they don't really cost much and offer much better performance usually.
RAID arrays can offer fault tolerance and/or increased disk throughput. RAID0 is a stripe that offers more throughput, but at the cost of increased risk of data loss and availability. This is because the data blocks are written on alternating hard drives. In effect, if one drive fails, half of EACH file goes with it, making the other halves worthless. The drives are then combined for storage, so 2 x 80 gig drives yields 160 gig of storage in RAID0.
RAID1 is a mirror. All data on one hard drive is cloned to the other. Therefore, if you have say two 80 gig drives, you still only have 80 gigs of storage. This gives minimal speed increases, but reduces risk of data loss and increases reliability since if one drive goes down, the other kicks right on in. Do remember RAID0 does nothing for protection against data loss through user error or virus attacks, etc. It only provides additional protection due to hard disk physical failures.
RAID5 is a sort of combination of the two. It's a compromise of striping (RAID0) for performance and mirroring (RAID1) for fault tolerance.
http://www.pcguide.com/ref/hdd/perf/raid/levels/singleLevel5-c.html
You can see in the article it's not as wasteful in storage as mirroring is, but doesn't give the near 100% of useful storage space that RAID0 does. It also offers some of the advantages of striping, so speed would be increased. The big knock on RAID5 is the increased costs associated with a better RAID controller that supports it, and the minimal number of hard drives needed (3 opposed to two in RAID0 or 1).
Do keep in mind what RAID1 or 5 offers before you plop down the money for it. Remember it is only effective for disaster recovery due to a physical hard drive failure, and only when the failure is the result of the hard drive itself, not if say your power supply causes the hard drive to fail (since the power supply would need to be replaced). On top of that, it's biggest real advantage in that the array fails over automagically to the good drive(s), allowing for no loss of availability except for when the bad drive can be replaced at a convenient time. Everyone wants near 100% availability, but if RAID were so beneficial, we'd all be running it. ;-)
Get down to real facts about what is the realistic goal of the company as far as availability and budget goes. Maybe the business doesn't need that kind of availability, especially considering it's no guarantee against loss of data or availability by other means.
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