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Outlook supports and works with OST (Offline Storage Tables) and PST(Personal Storage Tables) file storage.
PST (Personal Storage Tables)
An pst file stores your messages and other items on your computer. This is the most common file in which information in Outlook is saved by home users or in small organizations. Home users usually use an Internet service provider (ISP) to connect to the Internet. The ISP also provides one or more email accounts. The most common types of accounts are referred to by their Internet protocol names — POP3 and IMAP. Another type of account is an HTTP or web-based account that works similar to IMAP email accounts. All three account types use a .pst file. Your items can also be moved or archived to an Outlook Data File (.pst). Because a .pst file is kept on your computer, it is not subject to mailbox size limits on the mail server. By moving items to a .pst file on your computer, you can free up storage space in the mailbox on your mail server.
OST (Offline Storage Tables)
When you are using a Microsoft Exchange Server account, your email messages, calendar, and other items are delivered to and saved on the server. You can configure Outlook to keep a local copy of your items on your computer in an Outlook data file that is named an offline Outlook Data File (.ost). This allows you to use Cached Exchange Mode or to work offline when a connection to the Exchange computer may not be possible or wanted. The .ost file is synchronized with the Exchange computer when a connection is available. Offline folders are replicas of the folders found in your mailbox on the computer that is running Microsoft Exchange.
The fastest way to open the folder where your Outlook Data File (.pst and .ost) is saved is to do the following:
In Outlook 2010, click the File tab.
Click Account Settings, and then click Account Settings.
On the Data Files tab, click an entry, and then click Open Folder Location.
Outlook Data Files (.pst) created by using Outlook 2010 are saved on your computer in the Documents\Outlook Files folder. If you are running Windows XP, these files are created in the My Documents\Outlook Files folder.
If you upgraded to Outlook 2010 on a computer that already had data files that were created in earlier versions of Outlook, these files are saved in a different location in a hidden folder.
Windows 7 and Windows Vista drive:\Users\user\AppData\Local\Microsoft\Outlook
Windows XP drive:\Documents and Settings\user\Local Settings\Application Data\Microsoft\Outlook
Outlook Data File (.ost)
The .ost file is synchronized with the items on the server that runs Exchange. Because your data remains on the Exchange server, you can re-create this .ost file on your new computer without having to back up the .ost file.
Windows 7 and Windows Vista drive:\Users\user\AppData\Local\Microsoft\Outlook
Windows XP drive:\Documents and Settings\user\Local Settings\Application Data\Microsoft\Outlook
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