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Thanks for the feedback. &nbsp;This gives me the info I need to make the decision.
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Thanks for the feedback.  This gives me the info I need to make the decision.

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Scenario:<br />
I am setting up a Server 2008 R2 File Server in a branch office. &nbsp;It has about 2TB of storage space on the file server. &nbsp;I am considering creating a .VHD file and mounting this as a local drive and making this the file share. &nbsp;This would give good flexibility in the future of moving the data around if need be. &nbsp;<br />
<br />
Questions:<br />
1. Is ther any reasons I shouldn't do this?<br />
2. &nbsp;Will there be any performance decrease compared to not using a VHD file?<br />
3. &nbsp;I have heard that a dynamically expanding hard drive has decreased &nbsp;performance, any idea on how significant this is?<br />
4. &nbsp;Any other recommendations or thought are greatly appreciated.<br />
<br />
Thanks for your help with this!<br />

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Scenario:
I am setting up a Server 2008 R2 File Server in a branch office.  It has about 2TB of storage space on the file server.  I am considering creating a .VHD file and mounting this as a local drive and making this the file share.  This would give good flexibility in the future of moving the data around if need be.  

Questions:
1. Is ther any reasons I shouldn't do this?
2.  Will there be any performance decrease compared to not using a VHD file?
3.  I have heard that a dynamically expanding hard drive has decreased  performance, any idea on how significant this is?
4.  Any other recommendations or thought are greatly appreciated.

Thanks for your help with this!


2008 R2 File Server and VHD files

Computer data storage, often called storage or memory, is a technology consisting of computer components and recording media used to retain digital data. In addition to local storage devices like CD and DVD readers, hard drives and flash drives, solid state drives can hold enormous amounts of data in a very small device. Cloud services and other new forms of remote storage also add to the capacity of devices and their ability to access more data without building additional data storage into a device.

Storage

Windows Server 2008 and Windows Server 2008 R2, based on the Microsoft Vista codebase, is the last 32-bit server operating system released by Microsoft. It has a number of versions, including including Foundation, Standard, Enterprise, Datacenter, Web, HPC Server, Itanium and Storage; new features included server core installation and Hyper-V.