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The Internet Small Computer System Interface (iSCSI) protocol is primarily designed for enabling the connection of storage devices over a network. It works by encapsulating SCSI commands within the TCP/IP protocol suite, which allows SCSI commands to be sent over long distances and through standard networking equipment. This capability means that storage devices located in different physical locations can be accessed as if they were directly connected to the local server, facilitating centralized storage management and improving flexibility in a network environment.

This functionality makes iSCSI particularly valuable for environments that utilize storage area networks (SANs), as it allows consolidation and expansion of storage resources without the need for dedicated storage cabling. Distributed architectures can greatly benefit from iSCSI since it supports the integration of multiple storage solutions easily.

In contrast, while virtualization of servers is often associated with modern data storage techniques, the iSCSI protocol itself does not inherently provide virtualization capabilities. Also, secure file transfer relates to protocols designed to protect file data integrity and confidentiality, which is outside iSCSI's primary function. Finally, web hosting services pertain to serving content over the internet and do not directly involve the functionalities that iSCSI provides. Hence, the correct choice reflects the core purpose and operation of the iSCSI