What is filesharing?

Filesharing essentially involves exchanging files between two or more parties. As a rule, this kind of exchange is handled manually in response to a particular (ad-hoc) need, or simply in the context of collaboration. Depending on demand, filesharing can be cloud-based, it can take place on the premises, or it can use conventional technologies such as FTP. Typical applications include teamwork, project communication, customer communication and data transfer with trusted partners. In the corporate community, modern filesharing services often complement existing systems where there is a need to securely and efficiently transfer large and sensitive files. netfiles Send is a certified solution for secure business filesharing, but also for the transfer of confidential and/or mission-critical files.

MFT is a specialized solution for the automated, secure and transparent exchange of mission-critical data. By using established protocols such as SFTP, FTPS, HTTPS, AS2 and API-based connections, it makes data transfer consistent, audit-proof and fully compliant. While the main benefits of filesharing in general are flexibility and ease of use, MFT adds clear guidelines and maximizes security. Companies use MFT above all in contexts where the confidentiality and security of transferred data must be guaranteed. netfiles uses MFT for the secure, encrypted transfer of files and folders in compliance with data protection laws.

E-mail attachments quickly reach their limits. Size is restricted, tracking and tracing is not an option, and not even a company’s own compliance requirements are met in many cases. It follows that filesharing, especially via secure MFT, makes sense whenever large files and/or sensitive documents need to be sent – including clear management of rights and access.

Conventional e-mail programs and filesharing complement each other: Via upload or download links, documents can be made available securely via e-mail without first having to store them in your e-mail inbox. In this case, the data transfer recipient receives an e-mail containing information or the link that is needed to access the data.

In the past, the File Transfer Protocol (FTP) was used as a simple solution for file transfer. However, it no longer meets today’s security, compliance and transparency requirements. FTP features neither modern encryption nor clear access controls, nor does it deliver audit-proof transparency – all of which are indispensable factors for today’s companies. FTP has traditionally been unencrypted, although there are also variants such as FTPS (FTP via SSL/TLS) and SFTP (the SSH File Transfer Protocol). While these variants improve the level of encryption, there is no central control and no logging of activities. They are also technically complex, in terms of both administration and operation.

Managed file transfer (MFT) plugs FTP’s security loopholes. MFT reliably encrypts transferred data, records every activity, permits the granular management of authorizations and automates recurrent processes. Companies that need to transfer sensitive and/or mission-critical data therefore have no alternative but to use MFT.

The answer to this question is yes, provided that the MFT system deployed is sufficiently secure. An advanced managed file transfer solution such as netfiles Send transfers data in encrypted form, provides clearly defined access protection and enables every download to be reconstructed transparently.

Key GDPR requirements such as confidentiality, integrity, the principle of specified purpose and technical/organizational measures are thus met reliably and consistently. Nevertheless, it is also crucial for the provider to work in compliance with the GDPR – ideally hosting its data in Germany or the EU and possessing the relevant certifications.

Here again, the answer is “yes, in principle”. MFT records all data transfers and user activities in a log that cannot be modified and is audit-proof. As a result, it is possible at any time to reconstruct who transferred or downloaded what data. This seamless documentation is important for internal security processes, but also for compliance requirements such as NIS-2, DORA and industry-specific standards.

Business filesharing (sometimes also referred to as enterprise filesharing) denotes the secure exchange of files in a corporate context, both internally and externally. Unlike in the case of private filesharing, the focus here is on structured processes, clearly defined roles and strict security requirements. At all times, companies must be able to reconstruct who is exchanging what data, how long that data is available and what conditions govern access to it. For these reasons, compliance with data protection laws, other aspects of compliance requirements and the ability to control data are of pivotal importance, above and beyond the mere exchange of data.

In their everyday routine, many companies also turn to unsafe providers of private filesharing purposes (such as WeTransfer, TransferNow and MEGA). Alternatively, they may have recourse to what is termed the public cloud (e.g. Dropbox, OneDrive or Google Drive). Although these providers are very widespread and, in some cases, also offer services for professional use, extreme caution is advised when using them to exchange sensitive business data.

A trustworthy filesharing provider ensures that sensitive data is fully protected, transparently processed and transferred within a clear legal framework.

Key attributes:

• Hosting takes place and data is stored under a GDPR-compliant jurisdiction, ideally in Germany

• Freedom from dependency on laws such as the US CLOUD Act

• Certified data centers and processes (e.g. ISO/IEC 27001, ISO 22301, BSI C5, SOC 2)

• Encryption during transmission and storage (e.g. AES-256, TLS)

• Audit-proof logging and clearly defined access control

• GDPR-compliant collaboration with external partners – with no compulsion to open accounts

• No adverts, no tracking and no data mining

Audit engagements and consulting projects often demand the structured release of documents and the transfer of large data packages. Filesharing via MFT ensures that sensitive content such as project-specific and financial information is protected and that all transfers can be reconstructed.

Typical use cases:

• Exchanging audit reports, end-of-year accounts and working papers

• Transmitting large volumes of data exported from ERP or financial systems

• Releasing confidential project data to clients

• Audit-proof documentation of all uploads, downloads and accesses

In the field of law and tax advice, large volumes of highly sensitive documents have to be shared securely with clients, government agencies and/or courts. Much of this information is subject to strict data protection provisions and professional secrecy. Business filesharing via MFT provides a reliable solution that combines data protection compliance with audit-proof transparency.

Typical use cases:

• Secure exchange of confidential client documents

• Provisioning of large contracts, expert appraisals and tax documents

• Reception of sensitive files via protected upload links

• Audit-proof activity logging for internal control and compliance purposes

The focus here is on personal data, compliance and regulatory requirements (such as NIS-2, BAIT/VAIT and DORA). Filesharing via MFT allows even large volumes of data to be transferred securely, both internally and externally.

Typical use cases:

• Sending and receiving confidential client and contract documents

• Secure submission of damage documents, expert appraisals and image materials

• Data exchange between different locations/branch offices or with external partners

• Transparent, audit-proof transmission of sensitive documents

On the marketing front, in project development, for construction projects, whatever: In the real estate industry, large volumes of sensitive files accrue as a regular occurrence, and much of this data has to be shared with external stakeholders. At the same time, it has to be ensured that all parties always have access to up-to-date versions.

 Typical use cases:

• Sharing substantial exposés, CAD files, energy certificates and construction blueprints

• Secure communication with surveyors, project developers and/or estate agents

• Uploading sensitive documents for potential buyers or service providers

• Audit-proof documentation of transactions and handovers

Design data, quality reports and technical specifications often contain critical knowledge and intellectual property (IP). Filesharing via MFT reliably protects this information – even in the case of very large files and when data is shared with partners between different locations and countries.

Typical use cases:

• Sending large technical drawings, models and design files

• Securely sharing confidential project documents with production partners

• Taking receipt of supplier documentation (certificates, audit reports, approvals)

• Verifying and tracking sensitive downloads to ensure that intellectual property is protected

Power and other utilities operate critical infrastructure. In this capacity, they have to exchange large volumes of data – often with external partners – securely and in an audit-proof manner. To comply with legal requirements such as Germany’s KRITIS framework and NIS-2, an MFT-based filesharing solution provides an efficient way to plug the gap between practical usability and security.

Typical use cases:

• Sending large planning, testing and geodata files

• Securely sharing sensitive documents with grid operators and/or service providers

• Receiving technical documentation and certificates from partners

• Ensuring transparent transmission for regulatory inspections (e.g. NIS-2)

Government bodies require secure, transparent communication channels for citizens, partner organizations and internal departments – especially where large or sensitive files come into play. Compliance with the GDPR is therefore imperative for all data exchange, which should therefore be based exclusively on secure technologies such as MFT. E-mail – the option most commonly chosen – does not satisfy these requirements, which is why secure business filesharing is a sensible and user-friendly solution.

 Typical use cases:

• Sharing large administrative files, appraisals and project documents

• Citizen-friendly submission of sensitive documents via upload channels

• Providing confidential files to other agencies

• Audit-proof verification of compliance with laws, regulations and documentation obligations

Creative projects generate huge volumes of files, from videos to RAW image material, so a fast and reliable solution for data exchange and project feedback is essential. Many players opt to do all this via public cloud providers and other unsafe services. Yet these channels are ill-suited to protecting intellectual property. On the other hand, filesharing via MFT permits fast, secure data transfer with no size limits.

 Typical use cases:

• Sending large video, audio and graphical files

• Releasing sensitive customer projects to external reviewers

• Securely communicating finalize campaigns to customers

• Receiving large media files or raw input materials via upload links

Microsoft OneDrive is a powerful cloud storage service. However, since it is based in the USA, it is subject to the CLOUD Act and, hence, is exposed to greater legal risks regarding confidential and personal data. You also need a Microsoft account to use OneDrive. Moreover, since security functions that are typical of MFT are missing entirely, OneDrive does not appear suitable for the strictly regulated, audit-proof exchange of sensitive data. Here, netfiles provides a sovereign business filesharing alternative that attaches supreme importance to security, control and data protection.

netfiles advantages over OneDrive

• netfiles is developed and hosted exclusively in Germany and is therefore free from CLOUD Act-related risks.

• netfiles is a secure MFT-based filesharing platform that does not require an account for external partners who use netfiles Send.

• netfiles provides a certified and audited infrastructure (ISO/IEC 27001, ISO 22301, BSI C5, SOC 2).

• An added benefit of netfiles data room: Collaborative online processing is possible via OnlyOffice, entirely within a sovereign environment.

Google Drive is a cloud storage platform that is used around the world. As a US-based service, however, it is exposed to legal risks that many companies see as critical. Here, too, a Google account is required. While straightforward collaboration is Google Drive’s main strength, it has no MFT functionality for audit-proof, protected file transfer. In contrast, netfiles offers data sovereignty as an alternative developed specially for companies with strict compliance and data protection requirements.

netfiles advantages over Google Drive

• All netfiles data is stored in Germany, beyond the reach of US jurisdiction.

• netfiles Send provides secure, audit-proof file transfer via MFT instead of cloud sync.

• netfiles does not require external recipients to have an account.

• An added benefit of netfiles data rooms: Collaborative online processing is possible via OnlyOffice, so data is not siphoned off to hyperscalers.

Dropbox is a global cloud storage service with synchronization and sharing. A good choice for everyday use, it is less well suited to sensitive data that is subject to regulatory requirements. netfiles deliverrs controlled, certified business filesharing and ensures full data sovereignty by keeping all its operations within Germany.

netfiles advantages over Dropbox

• All netfiles’ hosting, operating and development activities are in Germany.

• netfiles prefers transparent governance to synchronized cloud storage.

• netfiles operates MFT-based, audit-proof data exchange for large files.

WeTransfer enables files to be transferred swiftly in simple use cases. There is, however, no guarantee of where data is stored. Nor are there any audit-proof protocols, and nor is there any governance for corporate customers. On the other hand, netfiles presents a professional alternative for secure, audit-proof and fully GDPR-compliant data transfer.

netfiles advantages over WeTransfer

• netfiles operates secure data centers in Germany instead of a globally distributed infrastructure.

• netfiles provides audit-proof records of all activities relating to all files.

• netfiles permits granular authorizations, expiry dates and protected releases.

• Netfiles exposes you to no risks arising from advertising, third-party tracking or suspicious links.