Windows Server operating systems support two types of hard disks, basic and dynamic.
Disk storage is managed using the Disk Management Microsoft Management Console (MMC) snap-in.
Basic and Dynamic disks were originally introduced in Windows 2000. All disks are initially basic disks until an administrator converts them to dynamic disks, one physical disk at a time.
The biggest advantage that dynamic disks have over basic disks is that you can create software-based fault-tolerant volumes (mirrored volumes or RAID-5 volumes) from volumes stored on dynamic disks. This cannot be done with partitions stored on basic disks, although it is possible to implement a hardware RAID solution using a RAID controller with basic disks, however this has additional expense as you would need to purchase a RAID hardware controller.
You can format partitions with the FAT16, FAT32 or NTFS on a basic disk, but you can only format a dynamic volume as NTFS from the Disk Management console.