Microsoft introduced FAT32 as a way around some of these issues. But the best long-term solution was to dump FAT entirely as a system-level file system and move to NTFS, a more robust file system that had been in use for Windows NT for some time. One of the many improvements NTFS provided was a reduced propensity for fragmentation. It doesn't eliminate fragmentation entirely, but it does guard against it much better than any version of FAT ever did. Today, no Windows system comes shipped loaded with anything less than Windows XP or Windows Server 2003, and the drives are almost always formatted with NTFS. So much of the impact of fragmentation is lessened by NTFS' handling of the problem.
Fragmentation is the demon that haunts hard disks for all users of Windows (and other operating systems). Defragmentation is the exorcist for that demon. After closely examining the subject, I've found that many of the things we held to be true about both fragmentation and defragmentation have become less and less true over time. The NTFS file system in Windows has helped alleviate many of the worst problems associated with fragmentation. However, it has not cured them.

