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I'm just wondering what most people do when they require more storage.
this often depends on what kind of data you are trying to store. lots of small files? a few very large files? rapidly changing files? mission-critical files? you will get more help if you give us a bit more information
Do you need multiple servers?
why not have more/and or bigger hard discs? :-)
or is this what raid storage is all about.
mirroring hard drives or setting up e.g. a raid 5 system over three (or more) drives is about not losing everything when one hard drive fails. it's not really about storage space - you actually LOSE storage space when you mirror or use raid 5 - you're essentially storing each bit of information more than once.
The reason for going to raid tends to be a) redundancy and b) speed. If you don't have either of those concerns then don't worry about it.
A 120 gig hard drive is small by today's standards. 300 gig hard drives are commonplace and relatively inexpensive.
2.4 million 50k jpegs
60000 2mb jpegs (that is about 5 megapixels)
400+ hours of decent quality video
2000+ hours of mp3
That is a LOT of information. Unless your site hosts pictures or video I can't imagine why you would legitamately need so much space. If you did need that much space, you likely will have lots of users and will definately want RAID to speed things up. Since you don't seem to know what RAID even is, it is unlikely your site will require it anytime soon.