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SQL Server Error 4014 doesn't always indicate hardware failure, but it can be a warning sign. It typically points to network communication problems, driver conflicts, or system-level faults that interrupt data flow. In some cases, failing hardware like faulty NICs, RAM, or disk drives may be the root cause. Therefore, while not exclusively a hardware issue, hardware failure can trigger this error. To ensure data safety, check system logs, update drivers, and consider using SQL Recovery Software to repair corrupted database files effectively.