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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?

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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?

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Thanks! Is it possible to save the document in physical location(some folder in server)? If yes, Is it a best way of managing documents? –  Toniyo Jackson Feb 25 '13 at 9:15
    
RBS is transparent to SharePoint. As far as SharePoint's concerned, the documents still live in SQL - but SQL strips out the binary content into another folder and manages the references from SQL to the binary content itself. RBS speeds up streaming of content from SQL to the application, but it introduces it's own complexities in terms of management of backups, etc. Have a good read through that guide, should make things a bit clearer on how it works. –  James Love Feb 25 '13 at 9:36
    
Thank you James. –  Toniyo Jackson Feb 25 '13 at 10:41

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