SOLVED: What is the Difference Between Azure Blog Storage and Azure File Storage

The main difference between Azure Blob Storage and Azure File Storage is the folder structure that is possible:

• Azure Blob Storage does not provide for folders; it is a flat structure
• Azure File Storage allows for folders just like any other file server

Blob Storage is cheaper than File Storage but both types of storage have the same redundancy options.  By default all data stored is stored in a single Microsoft data center and is cloned to three different servers.

This “locally-redundant storage” LRS is means that the Microsoft Data Center would need to be wiped out by incredibly effective malware or physically destroyed through a terrorist attack to have you loose your data.  Microsoft is unequivocal about this.  If you use LRS, you officially have no backup and they encourage you to use your own backup solution (like Veeam) to copy the data to a different, non Microsoft location, just like you would when your data was on-prem.

You can also pay extra to have Microsoft clone your data to different physically data centers and if you pay even more, MS will clone your data to data centers on different continents.