What is file sharing and how does it work?

The days of paper documents and packed file cabinets are long gone. Across every industry, digital file sharing is now an essential business practice. By streamlining processes and simplifying operations, file sharing software improves collaboration, compliance, organization, and client satisfaction. The impact of an effective file sharing solution for daily business practices cannot be overstated.

In this article, we'll explore what file sharing is, how it works, different types, its benefits, security considerations, and useful software tools.

What is file sharing?

File sharing is the public or private sharing of files through a digital medium. The process is typically carried out using tools specifically designed to make file transfers quick and easy.

How does file sharing work?

File sharing works by moving or copying digital files between devices over an internet connection. Businesses can use file sharing software to make this process more efficient.

What is file sharing software?

File-sharing software is a digital tool that allows professionals to exchange files seamlessly over the internet. Some examples of software include Google Drive, Dropbox, OneDrive, and ShareFile. These tools enable users to upload and organize documents in shared folders, facilitating easy collaboration between teams and clients.

Different types of file sharing

There are several ways for professionals to share files. Understanding your business needs can help you identify the best file-sharing option.

Cloud storage and file-sharing services

Solutions such as Google Drive and Dropbox allow you to store and access files in the cloud via an internet connection. Because the cloud is a network of servers that store and manage data, files aren’t saved in a physical location.

Cloud storage and file-sharing services are ideal for dispersed groups and large teams that need quick and easy access to files. According to Gartner, more than 70% of companies will use cloud platforms to accelerate business initiatives by 2027, up from less than 15% in 2023.

However, cloud storage isn’t always reliable, and not all solutions have strong security. Research the capabilities of cloud-based solutions to be sure they meet your storage and security needs.

Peer-to-peer (P2P) file-sharing networks

P2P file-sharing networks such as BitTorrent, Limewire, and KaZaa are decentralized networks that allow users to share files directly between devices without a central server. Because these networks provide a fast, direct connection, they are often used to quickly share information and projects.

However, P2P networks are not ideal for larger groups and may put companies at risk for computer viruses due to the absence of a centralized server.

File-transfer services

File-transfer services can send large files quickly and easily. Examples include WeTransfer, Filemail, and DocSend. These platforms can be useful for professionals who regularly send and receive digital files that are two gigabytes (GB) or larger. Download links aren’t secure, however, and file transfer service platforms may not use the highest level of encryption, potentially compromising security.

Social media file sharing

Nearly everyone has access to social media platforms such as LinkedIn, Instagram, and Facebook. Social platforms have messaging and file-sharing capabilities intended for sharing social content among friends. However, this file-sharing method is not ideal for the workplace. The maximum file size is 30 megabytes (MB), which doesn’t allow the transfer of large files. Social media platforms can also give rise to scams and hacking schemes. From 2021 to 2023, social media users lost a total of $2.7 billion due to cybercrime.

Benefits of file-sharing software

Here are a few benefits of file-sharing software for modern-day business:

Enhanced collaboration and teamwork

With file-sharing software, teams can streamline document workflows and collaborate on projects in a secure, online setting. Software enables real-time collaboration that makes it easier for remote teams to work together effectively.

Improved productivity and efficiency

Because software for file sharing improves collaboration and streamlines processes such as document approvals and reviews, it boosts team productivity and efficiency.

Remote access and flexibility

Solutions that have robust data access controls ensure that the right people are able to access information at the right time. This way, employees can collaborate securely from wherever they are.

Cost-effective storage and backup solutions

Many file-sharing solutions are cloud based, which enables teams to securely store information and access it from anywhere with an internet connection. Configuring settings to automatically backup important files helps protect important data.

Easy distribution of large files

It can be inefficient to send large files using email and other methods with size limitations. In order to collaborate efficiently, team members need file sharing software to send large files quickly and easily, without compromising quality or altering intended formatting.

Related Read: How to share large files via email

Security considerations in file sharing

Without strong data-protection measures in place, sharing files digitally can lead to security issues. Essential security features that should always be incorporated into file sharing software include:

• Access controls: This security process manages who can access data. Ensure your software can limit access to sensitive information to only necessary stakeholders, reducing opportunities for cybercriminals to steal data.
• Strong passwords: Long, complex, and difficult-to-guess passwords are the most secure. Solutions should include the option to create strong passwords to safeguard files and folders.
• Two-factor authentication: This security system requires two forms of identification before gaining access to files, such verification through a computer or a cell phone. Software should offer the option for companies to require a second form of authentication for extra security.
• Encryption: This protects data in storage and in transit by scrambling information, making it impossible for unauthorized parties to interpret. Choose software with 256-bit level encryption and specialized algorithms to ensure files are completely secure.
• Expiration dates: These set a time limit for how long shared links to files remain active. Secure software should allow you to configure expiration dates for shared links, preventing cybercriminals from accessing data through outdated links.
• File-transfer protocols: These are standardized methods that allow files transfers between computers over a network while ensuring data integrity and security. You should always use secure file transfer protocols for safe data transmission.

Related Read: Are you prepared for today’s modern cyber threats?

How to choose the right file-sharing software

To choose the right file-sharing software, assess your organization's needs and thoroughly research potential solutions.

Consider these categories and associated questions as you assess your options:

File size: Will you frequently be sending large files? Will you need to deliver them quickly? If so, look for a file software that can accommodate this.

Security and compliance: What security standards do you need to meet for your industry? Will your prospective software comply with HIPAA, the SEC, FINRA rules, and the General Data Protection Regulation (GDPR)? Select a software suited to your industry's regulations to avoid fines and data breaches.

User experience: Is the software intuitive and easy for staff to use? Will it encourage widespread adoption? Choose technology that is user-friendly to ensure your teams can quickly start benefiting from its features.

Compatibility: Will the software be compatible with your existing systems? What integrations does it use to boost productivity and efficiency? Make sure the new software will work well with current tools to maintain effective internal processes.

Collaboration: Does the software include features like live editing, commenting, and version control that make it easier to collaborate on documents? Be sure to select a software that promotes teamwork to drive efficiency.

Scalability and storage: Does the software have enough storage capacity to support your business now and in the future? Are there features that empower scalable processes? Choose a tool that can grow with your business to help cut costs.

Reputation and vendor support: What feedback are current customers providing about the software? Does the vendor provide adequate support and education before, during, and after implementation? Select a provider that will work collaboratively with your team and help guide you to the best solutions for your business.

Which software is best for sharing files?

There are a lot of file-sharing options available. To help make your search easier, here's a list of solutions that offer the features and functionality discussed in this guide:

• Google Drive: For businesses without strict privacy concerns or security requirements, Google Drive has a large amount of free storage space. It makes it easy for team members to access and collaborate on documents. However, companies using Google Drive should be careful setting permissions for each document and folder. In a shared Drive, newly created files are accessible to everyone by default, and users will have to change permissions manually for any documents that should have limited access.

• Microsoft OneDrive: OneDrive integrates well with Android, iOS, Mac, and Windows, and enables teams to collaborate remotely through a user-friendly platform. It also has powerful collaborative editing features, but lacks end-to-end encryption for the most sensitive documents. Encryption is important because it protects sensitive information from being accessed by unauthorized users.

• Dropbox Business: Dropbox offers many integrations that can streamline file sharing for a range of industries, from construction to real estate. It has fast upload speeds, but its complexity can hinder collaboration, and it tends to be costlier than other solutions.

• ShareFile: With the highest level of security and flexible access controls, ShareFile is the ideal file sharing platform for legal, finance, healthcare, and other highly regulated industries that work with sensitive information. Beyond this, ShareFile’s time-saving workflow automation capabilities and intuitive user interface make the software a good solution for many busy companies collaborating on high-stakes projects.

Share files confidently and securely

File sharing is essential for modern day business. With a wide range of potential solutions, teams can choose what works best for them to increase collaboration, productivity, security, and the efficacy of remote work. To get the best results for your business, make sure you’re choosing user-friendly and secure file-sharing software you can trust.