On A Budget - Options for Using a File Server.

Hi - I have this relatively old 2008R2 file server (8GB memory and 25TB disk) I'd like to use as file storage for a SQL Server VM.  The network is a 1GB switched configuration.  The VM resides on relatively new hardware (Server 2012, SAS) but doesn't
have a lot of disk.  I'd like to make a bunch of the file server space available for SQL Server Data (2008R2) - its a small network (10 users) that we want to load a bunch of glob data indexed by a few keywords as reference.  Kind of like a
GIS database.  My first thought is to create fixed vhdx file on the file server via Hyper-V manager, but this takes days to initialize for the size I'm thinking of (10TB).  I created an expanding disk and it was pretty quick to create.  I copied
a 4GB file over the net to the mounted (from the Hyper-V Host) vhdx file and it went pretty fast.  I thought about using the iSCSI trick to attach it to the SQL VM (turning the file server into a SAN sort of?), but I'm wondering if this is overkill. 
I'm just looking for a few suggestions.  There is a lot of stuff out there, some of it conflicting, about storage configuration.
Thanks

Yes, upgrading....
I need to emphasize the budget thing.  I will look into the iSCSI option.  The VM is Server 2012.
We might be able to convert the 2008 server to Windows 8.  It doesn't really do anything besides file shares and security is not a concern as we are not connected.  Is that an option?  Win8 supports SMB 3 I understand.
Yes you can do that. But... Older desktop versions of Windows were limited on amount of TCP connections they could handle obviously affecting usability and performance as a server. Not sure what's accurate for Windows 8 as MSFT has been changing this policy
back and forth all the time )) Check within MSFT licensing specialists before you do that.
P.S. I'd spawn FreeBSD or openSUSE with a Samba instead of a desktop version of Windows OS being used as a file server. IMHO.
Cheers,
Anton Kolomyeytsev [MVP]
StarWind Software Chief Architect
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