By default, Sharepoint stores the documents in Sql Server. It may give performance issue if we have large files(say 1 TB).
So, how do we overcome this or do we have any other way of storing documents?
There are alternative configurations (read up on Remote BLOB Storage for SQL Server) but consider this: no matter how you store 1TB documents, look into your backup & restore strategy. Can your business operate and allow the downtime required to restore multiple TBs of data, and can your business accept going back to a backup made a set time ago?