A storage area network (SAN) provides centralized storage for multiple servers to access over a network. SANs are useful for large networks that require more storage than a single server can offer, allowing terabytes of data to be accessible by multiple machines. The key components of a SAN include fiber channel switches that connect servers and storage devices, host bus adapters that interface storage with operating systems, and storage devices like fiber channel disks. SANs provide benefits like high storage capacity, reduced costs, increased performance, and improved backup and recovery compared to adding more individual servers. However, SANs also have disadvantages in being expensive to implement and maintain and requiring technical expertise.