Difference between Blob Storage and File Storage in Azure

File Storage:
The File storage offers cloud-based SMB file shares, if we are porting an existing application that needs to share files then use Azure File Service. File share up to 5TB capacity limit.

Blob Storage:
If we are developing a new application, you should leverage the native Azure API directly into Blob Storage, in this scenario we can use blob storage, because the blob storage up to the 500 TB capacity limit. Blobs are cheaper and have less limitations.

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