A SAN earns its place when you are running workloads where I/O performance, high availability, and centralized storage management directly affect business outcomes, such as large databases, VDI environments, financial systems, or virtualization clusters with many hosts. If your storage requirements can be met with NAS or cloud object storage, a SAN is usually overkill. The decision often comes down to whether the workloads you support can tolerate the variability of file-based or cloud storage during peak demand.
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