The Server stores all of its working data in its own central repository. This includes all of the session data that flows through it, a full text search engine, as well as configuration data.
In Standard Edition there is just one repository for the server. In Enterprise edition you can define as many repositories as you like. Each gets its own file storage area, storage quota, and SQL Database.
When you first start the Server Administrator you must specify the directory to use for this purpose, since it has to be created to store the rest of the server configuration. When selecting a directory, consider:
The server uses disk space for a few things:
Taken together, we recommend having at least enough disk space to fit the repository data retention setting plus 2.5GB. If the repository data retention setting is less than 2GB then the space reserved by cache can be similarly reduced.
The server repository is not particularly disk intensive. It is designed to work well on low performance disks as well as virtual disks. Processor and adequate RAM are more significant concerns than disk throughput. The SQL Server generates the most disk IO and is typically limited by disk performance. When it is local to the server and the Server Repository then it should be located on disks with adequate performance.
All of the repository configuration information and data is stored underneath the folder you select. It can be backed up as part of a routine operating system backup using Volume Shadow Copy. The repository database file is frequently opened & closed so that it can be safely captured by a snapshot of the file and is designed to recover from any minor data issues that may result. To restore the Server you will need to stop the web site and team service to ensure they don't interfere with the restore. If you find yourself in this situation, please contact support so we can discussion your options to have the best result.