Does File System Just Write Locally

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IHAC that either wants us to write a data set(specific logs) to disk for an EFTU transfer to pick up from our workers, or for us to send to a windows file share. For the Filesystem destination Need clarification on output location. Not seeing clear details on configuring that in the docs. Does File system just write locally? Does file system write locally then you use file monitor from sources to pick up and send to a location? Is a shared windows folder an available destination? Thank you in advance, this is in PubSec very locked down environment