Without getting into the different types of RAID, 1, 0, 5, etc.. As you have asked you have two types of RAID, Software and Hardware based. FakeRAID is software based. Anything resident on your Motherboard is software based. The differences are many. Basically software RAID is far more susceptible to failure especially if you do not understand how to manage the different types of arrays. Everything in the Soft RAID side is managed via the software on the motherboard so if the motherboard fails or looses power then the RAID dies as well.
Hardware solutions usually stay powered up long enough on their own to allow for proper shutdown and graceful exit on failure. They also have their own dedicated processor(s) and chipsets and memory.
The downside is that a decent Hardware RAID solution will set you back about $400.00 if you have to buy a new Controller.
The upside to whatever you choose is that the OS's on top will be fine in either configuration.
If the Mobo fails and your running software RAID off that mobo you still have the drives and may be able to get it all spun back up, but IDK, never had to do that.
I would recommend that you at least understand THIS
before configuring a RAID solution that you need to rely on and will use going forward. Once you have made your choice it will be a PITA to switch.
You will loose more data in RAID if you don't understand it than you would on a regular drive.
For a really, really detailed look at RAID, have a look at this question over at our sister site on ServerFalt: http://serverfault.com/questions/339128/what-are-the-different-widely-used-raid-levels-and-when-should-i-consider-them
– tombull89 – 2012-05-18T14:26:55.540