iSCSI allows SCSI commands to be sent over IP networks, extending storage networks beyond local LANs. It uses standard IP networking and requires less expertise than Fibre Channel. Key benefits include low cost by using existing network infrastructure, excellent performance as a cheaper alternative to Fibre Channel, no distance limitations, interoperability, and security features. iSCSI is recommended for budget-constrained or geographically distributed organizations and those using server virtualization.