What is file-sharing software and how does it work?

File sharing software allows you to transfer digital files between multiple devices or users over a network or the internet. This type of application essentially acts as a bridge, making it easier to share documents, images, videos, and other files with colleagues, friends, or family.

Let’s say you need feedback on a piece of content. What are your options?

• In the past, you might have printed out your document and walked it across the office. In the case of videos and images, you had to provide physical tapes or copies to your team.
• Later, the “modern” approach became emailing files to colleagues, which was less than ideal when it came to version control and security. Not to mention, most email servers have attachment limits that restrict the size and number of files you can send, resulting in frustrating emails telling us we had hit, capacity limits.
• Alternatively, you could load a file onto a removable storage device, such as a USB flash drive or portable hard drive, and physically hand the device to a collaborator. Again, not secure, and far less than up to par for your business needs.
• Today, with file sharing software, it’s much easier and more secure to share content.

Let’s review the different types of file sharing software and their benefits.

What is file sharing?

File sharing is the practice of transferring or distributing digital files. When you share a file, you offer another user access to it.

Sharing files is critical to basic business operations, team collaboration, and remote work enablement. The file sharing market has grown rapidly over the last few years — and it’s expected to reach $28.77B by 2032 while registering a solid CAGR of 9.50%.

Using file sharing software, you can share multiple types of files, including:

• Documents
• PDFs
• Audio
• Large video files 
• Images
• E-books
• Computer programs

The type and size of files you can share varies based on the program you use and your permissions level. Some programs limit the size of each file, while others allow you to share files of unlimited sizes.

Benefits of file sharing software for businesses

Whether you’re a large enterprise or a small to medium-sized business, you need a secure and effective way to share files with clients, customers, and colleagues. Here’s why:

• A distributed workforce can work on projects simultaneously, improving efficiency and collaboration
• Security measures like robust access controls, file encryption, and permission settings help ensure your sensitive data stays protected
• Audit trails provide a clear record of file activity, making it easier to comply with industry regulations and internal policies

How does file sharing software work?

Generally, file sharing software works in one of two ways.

1. A program accesses files on another computer

When a file sharing program accesses files stored on someone’s computer, it’s known as peer-to-peer (P2P) file sharing.

P2P has developed a bit of a bad reputation, however. In the late 1990s and early 2000s, P2P programs, such as Napster, facilitated sharing music files between individuals. The problem was that the people sharing the music files didn’t have ownership rights over the files — and had no legal right to share them.

P2P file sharing of this kind also creates enormous security risks like the inadvertent sharing of malware disguised as music files. Note that while P2P file sharing is illegal in some cases (Napster was shut down in 2001), the practice is sometimes acceptable among rightful content owners.

2. A program accesses files stored on a server

File sharing software can also work by storing files on a server and transferring them to a computer. The server might be a physical server, or it could be cloud-based. Steps include:

• Files shared from a server get uploaded to the server, where an authorized user can access them
• Depending on permissions, the user can edit the files, download them, or delete them. In some instances, a user might only have permission to view the files.

Types of software used to share files

Within the P2P and server-based file sharing categories, there are multiple types of software to distribute your content to others.

1. System local file sharing

Operating systems such as Windows and Mac OS include the option of sharing files over a local area network (LAN): a group of computers in the same general area, connected over the same network. If your company has a centralized workplace, the computers in the office building are probably on the same network. Schools and libraries might also use a LAN to connect devices.

If there’s a LAN, it’s possible to create a network drive that can be accessed from any computer on the network. You can also connect the computers on a LAN to the same printers and internet connection.

Usually, files you share locally end up on a mapped drive, which is in some ways similar to your computer’s local drive. But while you can only reach a computer’s "C" drive — or whatever name you give the local drive — when using that particular device, you can access the mapped drive from any device on the network. You can save a .doc or .pdf on the mapped drive on your computer, then walk over to your co-worker’s computer, click on the mapped drive folder or icon, and open the same file.

To prevent users from deleting or overriding their peers’ work, when a file stored on a mapped drive is opened on one device on the network, a user on a second device is either prevented from opening the file or can only view it in read-only status. In order to edit the file, the second user must wait or proactively request that the first user close the file.

2. Client-server file sharing

A client-server file sharing program stores files on a server and sends them to users upon request. This type of model can take several different forms.

File transfer protocol (FTP)

With FTP, you can send files to and from different devices over the internet. To use FTP, an individual needs access to the FTP server, for instance, by logging into an FTP client. Some FTP servers require a username and password. The servers that don’t need a username and password are typically anonymous. They share files that are open source and meant to be available to anyone. Some FTP servers work through a web browser and don’t require a user to install a separate FTP client.

FTP shares files through two channels:

• The first is the control channel, which establishes the contact between server and the computer that wants access to the file. The control channel also verifies user information, if necessary.
• The other channel is the data channel, which is responsible for transmitting the data from the server to the other computer.

Every FTP server has an address, which looks similar to an IP address or URL. It can take the form of words, such as ftp.sharemyfiles.net, or a series of numbers, such as 123.456.789.

Using FTP to share files involves two things:

1. Uploading them to the server so someone else can access them
2. Downloading them from the server

For example, you might upload files to an FTP server to use on a webpage. Or your colleague might upload a video file to the FTP server for you. You can then log into the FTP client to download it to your device.

FTP is an early example of a file sharing solution that dates to the days before there were graphical interfaces. Back then, there weren’t concerns about data breaches or security like there are today. So keep in mind that you might need an FTP alternative, as this method doesn’t have the security features you’d find in the best file sharing programs.

Email

Sending files over email is another example of a client-server file sharing system. To send a file over email, you attach it to a message. You can send the same file to multiple recipients simultaneously.

There are several major drawbacks to using email to share files, including limitations on file size, version-control issues, redundancy of files, difficulty of oversight by IT, and other security concerns.

3. Peer-to-peer (P2P) file sharing programs

One way to think of peer-to-peer file sharing is that it cuts out the intermediary — the server. Instead of uploading files to a server or a mapped drive, a P2P file sharing software lets you share files directly from one computer to another. Napster is a well-known example of a P2P file sharing program, but there are many others. While some individuals use P2P for unethical or illegal reasons, such as sharing pirated music or video files, it has legitimate uses.

• If you create content, such as music and video files, and want to share them directly with fans, you can make the files available on a P2P program
• You can also use the software to share files with your colleagues; for example, bysetting up a P2P network that only connects the computers in an office building or the company’s devices

P2P file sharing, also referred to as decentralized sharing, comes with security concerns, however. There’s always the risk of downloading a virus or other type of malware, and, as Francis Dinha, a Forbes Councils Member, puts it, “I believe that no VPN that allows P2P file sharing is truly safe or secure.”

4. Cloud-based file sharing

A cloud-based file sharing program lets you store content in the cloud — a system of remote servers on the internet.

With cloud-based file sharing, you can access your files on any device, from any location that has an internet connection. If you upload a file to the cloud while in the office, then realize you need to make changes to it when you’re at home, you can do so, and the changes will sync with the file. This method also allows multiple users to edit the same file in real time while keeping track of each person’s changes.

Benefits of cloud file sharing software

The cloud has become the file sharing option of choice for many companies. Reasons include:

• The cloud is mostly device agnostic. Employee A can use a Mac, and employee B a PC, and both are able to access the same file in the cloud. You can also free up storage space on devices, because the files are stored remotely rather than on a specific computer or physical server.
• Cloud-based file sharing systems often have built-in features to protect your content. For example, files might be password protected or require multi-factor authentication to access. Plus, content owners and IT teams can set user permissions. You can decide to make a piece of content accessible to all and limit who can edit or delete it. For example, you can set a document to be viewed or read by anyone, but you might assign only employees from a certain domain editing permission.
• Compared to other file sharing programs, cloud-based solutions allow for faster uploads and downloads. When you upload something to a P2P network or FTP server, you’re limited by your internet connection speed. The same is true for downloading from a P2P program or FTP server. Since you aren’t actually downloading the file when you use a cloud-based program, you don’t have to wait for it to transfer from the server to your device.

What to look for in a file sharing program

The right file sharing program can help improve your productivity while giving you and your team a centralized place to access and store your content. As you begin the search for the best file sharing software, consider what you need from the program and the features it offers. Some of the things you might look for include:

1. High-speed transfer

If you typically send large files such as videos or music files to a server, you don’t want the process to take all day. The same is true when it’s time for another user to access and download those files. Time is money, and the longer it takes files to upload or download, the less time you and your team will have to collaborate on those files.

With some file sharing programs, the transfer speed is limited by your connection speed. Additionally, some internet service providers impose caps, meaning your connection might slow down drastically when you try to upload a 1GB or larger file. Since cloud document storage and sharing programs store content remotely, there’s no need to download them to a specific device. The files can load instantly, letting you and your collaborators get to work right away.

2. Ease of use

Some file sharing programs are easier to use than others. Ideally, the program you choose won’t require an extensive amount of training to use. You want to get everyone up to speed on how it works so you don’t experience a disruption in your productivity.

One feature to pay close attention to is user-friendliness. A program designed to be intuitive will be much easier to implement than one that’s overly complex. Look out for features like link sharing and drag-and-drop file uploading.

3. Simple deployment and management

If you start using a new file sharing program, you’ll need to onboard your team members. Doing so shouldn’t be too complicated. A solution that’s easy to deploy will likely integrate with apps you already use and create a seamless onboarding experience.

Plus, it should be easy to manage day to day. Updates are important, but there shouldn’t be so many updates that you risk using an outdated system. The software vendor should keep you up to date on any developments and changes.

4. Excellent customer service

Questions are likely to come up when you use a file sharing platform, both during the onboarding process and daily use. Maintaining access to your content and ensuring the right users can access it is critical for your company’s functioning.

For that reason, you want to look for a file sharing platform that has excellent customer service and provides detailed training so everyone understands the software functions and what it can or can’t do. The vendor should also have a team available to answer any questions you have about how the platform works.

This is particularly important for organizations that don’t have an enormous IT team with folks dedicated to 24/7 customer service.

5. Security

Security is one of the biggest issues to consider when evaluating file sharing software, because it varies tremendously depending on your software of choice. For example, email is not a secure way to share files, as a bad actor can intercept a message. FTP isn’t a secure file transfer method unless you are using FTPS or SFTP.

Most cloud-based file sharing platforms, on the other hand, include security features that aim to keep your data confidential and out of the hands of bad actors. They also help you to comply with industry regulations such as the Health Insurance Portability and Accountability Act (HIPAA) or with other specific laws.

Security features to pay attention to include:

• Encryption while data is at rest and when it’s being transferred
• File password protection and link expiration
• Multifactor authentication and single sign-on 
• Ability to control multiple user permission levels
• Data leakage prevention and threat detection
• Coverage of your compliance needs

6. Customization options

Your file sharing platform should work for you — you shouldn’t have to work for it. A tool you can customize will better meet your needs and serve your company than one that offers no customization.

One customization feature to look out for is app integrations. If your company already uses certain apps, such as Slack or Salesforce, it will be easier for you to work with a platform that integrates with them rather than one that requires you to start from scratch.

Storage needs also vary from company to company. If you’re just getting started, you might want scalable cloud data storage that can grow with you rather than one that offers limited storage options or massive amounts of storage for a high price.

7. Good reputation

Reputation matters when you’re choosing a file sharing tool. What are others saying about it? Are the reviews largely positive?

Another thing to consider is the company’s history. Has it lost files or have there been any significant data breaches?

The platform’s uptime is also worth consideration. If there’s a history of crashes or time offline, consider how that will impact your company’s ability to access and work on its content.

Get the best file sharing software

Box offers a secure collaboration solution that gets your team working in the cloud.

The Intelligent Content Cloud from Box lets you create, share, edit, and store files — ensuring quick access to content ranging from PDFs to MPEGs, docs to JPEGs. Additionally, you can assign specific permission levels for users and set expiration dates on link shares. For example, managers might have the option of deleting certain files, contributors editing them, and interns limited to viewing those files.

Box integrates with more than 1,500 apps, which allows you to seamlessly use applications like Google and Microsoft 365. Features such as password protection, audit logs, and encryption keep bad actors away from your data and help you keep tabs on what’s going on with all your files.

Security is built into our DNA, which is why more than 100,000 businesses use Box to secure their most valuable and sensitive assets. Box protects your data from end to end, and makes it easy for you to share your files securely. Contact us today to see how it works.

**While we maintain our steadfast commitment to offering products and services with best-in-class privacy, security, and compliance, the information provided in this blog post is not intended to constitute legal advice. We strongly encourage prospective and current customers to perform their own due diligence when assessing compliance with applicable laws.