Windows Server Summit 2026 | Part 5: Zero-downtime migration, hybrid file services: Azure File Sync
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File services and shared folders remain widely used and are employed by organizations to centrally provide access to data. However, traditional file shares are known to have certain limitations (accessible only via VPN or similar methods, and sometimes with slower access speeds). In addition, services such as DFS are typically used to manage distributed file systems through a unified namespace. But DFS also comes with its own set of limitations.
That’s why Microsoft has created Azure File Sync, a modern, cloud-based alternative that addresses some of these limitations and also offers interesting additional features.
This article takes a look at the service and common use cases. Who knows—maybe there’s something here for you, too?
Introduction to Azure Files and Azure File Sync
At the beginning of the session, the presenter provides a deep technical dive into how Azure File Sync works. It is therefore well worth watching the session if you want to understand how Azure File Sync functions in detail: Zero-downtime migration, hybrid file services: Azure File Sync - Windows Server Summit
Azure Files and Azure File Sync are typically used today in the following situations:
| Scenario | Description |
|---|---|
| Replacing Remote Desktop Services with Azure Virtual Desktop | Synchronization of profile disks to Azure Files and integration into the AVD environment |
| Modernizing classic file shares | Creation of shares in Azure File Share, data transfer, and regulation of access—theoretically from anywhere—via Conditional Access (see the tip for details) |
| Transfer of large archival holdings (e.g., 10 TB) | Azure Blob Storage offers various storage tiers that enable highly cost-effective retention of large datasets. |
| Hybrid access to distributed data repositories | Rapid access to data repositories across multiple locations via a region-based model (cf. DFS). |
Advanced usage scenarios
Microsoft has also described additional use cases and announced new features for Azure Files:
ADDITIONAL USE CASES
- General shares (user home directories, logs, configuration files)
- DevOps and data backups
- Data for enterprise applications (e.g., databases, CRM, containers)
- Performance-sensitive applications (cache, media/analytics, content storage)
In addition, the document demonstrates how data stored in Azure Files can be effectively protected against data loss, for example, using features that protect against ransomware encryption.
New features
There are several new features for Azure Files, which are described below.
AI for local data
Connecting local file shares via Azure File Share enables the integration of data repositories with Azure AI Search. This allows AI models to be utilized to make data repositories searchable and to process them using AI.
New billing model
A new billing model is available for Azure Files. The following table compares the billing models:
| Billing model | Description |
|---|---|
| Pay-as-you-go | A combination of consumed storage, transactions, and data transfer is billed. |
| Azure Files Provisioned v1 | IOPS and throughput are determined and billed based on consumed storage. |
| Azure Files Provisioned v2 (neu!) | Separate provisioning and billing of storage, IOPS, and throughput. |
Microsoft recommends using the new billing model for all new Azure Files deployments.
New regions
Azure Files will soon be available in the following regions:
- Europe: Italy North, Poland Central, Spain Central, Belgium Central
- New Zealand
- Indonesia Central
- Malaysia Central
- Israel North
Further improvements
In addition, the following improvements are available or will be introduced shortly:
- Improved performance (10x)
- Support for using Managed Identities instead of access keys
- Integration with Azure Arc for deploying the Azure File Sync agent
- Price reduction if the organization holds Software Assurance (effective March 2026)
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