A discussion can be found here:
http://linux-ata.org/faq-sata-raid.html
I like to dinstinguish FakeRAID and software RAID. To me software
RAID is a feature of the OS and completely accessible to the
user with OS-integrated tools to manage it. Software RAID is not
tied to some controller or even interface technology. Ideally, it
can also be done with partitions.
Hardware RAID, once assembled (initialized), presents itself to the OS
and generally the PC-side of its interface, as one large device.
There will still be some management software, but all the RAID
operations are done on the card. Hardware RAID cards have their own
small computer in them, with some limited degree of autonomity. The
primary advantage is that hardware RAID does typically work without
special drivers and that things like disk replacement can even be
hidden from the OS. The second advantages is that the busses in the
PC do only need to carry the final datastream and the CPU does not
need to do any RAID algorithms.
FakeRAID is software RAID in the BIOS chip of the controller.
This has all the bad sides of hardware RAID, namely controller
failure makes the RAID unacessible and all the bad sides of software
RAID, namely more load on CPU and busses, without the advantages
of either. It also tends to be OS specific. The reason to call it
FakeRAID is that these things are marketed as if they were hardware
RAID, when they are not. IMO, it is a worst possible solution.
Arno