The overhead of storing the image data directly in the database can become an issue, especially for large sites with a lot of traffic.
Usually I have a naming convention for storing the images on the server, and the file names are re-written from whatever the user uploads, but you can retain the original file name from the user if you prefer - just make sure to sanitize them. The database only stores metadata for the images, so that requests for the image files can be handled directly by the webserver.