Very naive question here: when you upload to SharePoint, are the files stored in the file system or in SQL Server?
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The files are (generally) stored in SQL server in databases called content databases together with all other content, such as list items and metadata. |
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They are stored in the Content Database on SQL Server. There are provisions to offload the files to the file system and third party tools to assist with it. |
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Files that you upload within SharePoint to Document libraries are normally stored within SQL server. However, if you're uploading files as part of a Feature that you are developing and installing, those files can be served from the filesystem OR from the database. |
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