RAID 5 servers use a redundant array of independent disks with parity to ensure data is not lost if a drive fails. RAID 5 offers good redundancy at an affordable price, allowing recovery of data even if a whole disk fails, and requires a minimum of 3 disks. While other RAID types have disadvantages like high failure rates or limited redundancy, RAID 5 remains widely used due to its effective balance of redundancy and cost.