Storage Foundation for Windows assigns one group for all basic disks, called the Basic disk group. Dynamic disks, however, can have multiple disk groups, which are called dynamic disk groups. Disks within a dynamic disk group share a common configuration. Dynamic volumes are created within a dynamic disk group and are restricted to using disks within that group.

When SFW is run for the first time on a server, all disks are in the Basic disk group. To upgrade basic disks to dynamic, one or more dynamic disk groups have to be created with the New Dynamic Disk Group command.