There are a host of options on the market for businesses that require a way to share and manage their working files and information. Maybe the one your organization is currently using isn’t meeting your needs. Perhaps you’re looking for a higher level of security. Or you might just be interested in finding out whether you can procure a more cost-efficient alternative. Whatever the case may be, the search for the right file-sharing solution involves asking a number of important questions.
Should you go with a free option and reap the cost savings? Is it better to set up your company’s own FTP/FTPS server? What is hosted file sharing, and is this the best alternative for your organization? Should you be looking to the cloud or an on-premises solution? To make a well-informed decision that leaves you with a secure, effective means of file sharing, be sure to uncover and fully understand both the benefits and challenges inherent in each option.
This article will delve into the various file-sharing alternatives for enterprises and help you wade through their strengths and weaknesses in order to arrive at the best solution.
Free Cloud-Based Services
Free alternatives like Dropbox, Google Drive and iCloud are often a choice for businesses interested in bringing down their file-sharing costs. Employing one of these services may be a great way to leverage the benefits of technology to create the most collaborative and efficient work environment possible -- that is, IF your users are fully aware of the natural risks these solutions bring, and how to mitigate them.
After all, you’re dealing with business, customer and/or employee data. If users are sharing information irresponsibly or without the proper safeguards in place, your “free” service could end up costing you thousands (or even millions) in security breach losses, company damages, compliance penalties and other financial consequences. For example, if the network that a remote employee is using isn't secure, all the data transferred over a public cloud service can be exposed to people with malicious intentions in a matter of seconds.
Government rules and regulations are very specific regarding the types of security measures that must be in place to prevent customer information from falling into the wrong hands. While many of these free services make file transfers easier than ever before, they often lack the protocols necessary to keep up with critical security requirements. Depending on the type of industry you're in and the kind of data you’re dealing with, opting for a free service may not be the best course of action.
Here are some of the biggest dangers you should be aware of when considering a free cloud-based alternative for your file-sharing needs:
- Security Vulnerabilities: 90% of free file-sharing platforms lack robust encryption. This leaves sensitive files vulnerable to unauthorized access during transfer or storage. (Source: Cybersecurity Ventures)
- Data Breaches: Data breaches involving free file-sharing tools cost businesses an average of $4.35 million per incident. These tools often lack advanced security features necessary for protecting sensitive information. (Source: IBM Cost of a Data Breach Report 2023)
- Compliance Risks: 68% of organizations using free file-sharing tools fail compliance audits. These platforms typically don’t offer the necessary features to meet regulations like HIPAA, GDPR, or ITAR. (Source: Ponemon Institute)
- Lack of Administrative Control: 79% of IT administrators report they cannot monitor or control file-sharing activity on free platforms. This increases the risk of data leaks and insider threats. (Source: TechTarget File Sharing Survey)
- Downtime and Reliability: Free file-sharing platforms experience 3x more downtime than enterprise solutions. Unplanned outages disrupt business operations and can lead to significant productivity losses. (Source: Uptime Institute)
- User Access Risks: 53% of data leaks involve free file-sharing tools due to weak or shared credentials. Lack of granular user access controls allows unauthorized users to access sensitive data. (Source: Verizon DBIR 2023)
- No Audit Trails: Nearly 70% of free file-sharing solutions don’t offer detailed reporting or audit logs. Without an audit trail, it’s impossible to track file activity or investigate incidents. (Source: SANS Institute)
- Scalability Issues: Over 60% of businesses outgrow free file-sharing solutions within the first year. Limited storage, bandwidth, and user capacity make these platforms unsuitable for long-term use. (Source: Gartner Research)
- Malware and Phishing Risks: Free file-sharing platforms are targeted in 30% of phishing attacks and malware infections. Users are often tricked into downloading malicious files or sharing credentials. (Source: Symantec Internet Security Threat Report)
Before you dive into a file-sharing service headfirst, make sure you’re not sacrificing security for savings. Again, “free” could wind up costing your organization more than you bargained for.
Your Own FTP Server
FTP, or "file transfer protocol," is a file-sharing service that brings with it many of the benefits that modern technology has to offer with virtually none of the downsides. FTP can definitely alleviate problems that you're experiencing on an organizational level with services like ShareFile, DropBox and more.
It is inherently secure so long as FTP with SSL is required, thereby disabling unencrypted access. Users can even transfer files from their home networks without worry, as all data in transit is encrypted. Anyone without the proper key wouldn't be able to access the information contained in the data even if they were able to intercept it during the transfer. These additional security measures go a long way toward ensuring that your organization is not vulnerable to security breaches and compliance violations.
One way to employ FTP at your organization is to set up your own server. This is a safer alternative to relying on consumer-grade cloud-based options. However, it’s necessary to think about whether you have the resources to implement this choice. First, there’s the expense of procuring all your own equipment. Second, there’s the manpower and expertise needed to maintain and troubleshoot a private server on your own. Third, there are many aspects to securing your own server. If these are not requirements you’re prepared to deliver on, you should consider the possibility of utilizing a private FTP server through an enterprise-grade hosted file-sharing provider.
Hosted File Sharing & File Transfer
If you’ve ruled out free, public cloud-based services for security reasons, and you’ve checked a private, on-site FTP server off your list as a result of resource insufficiencies, there’s still another option at your disposal -- and it just may be the smartest one yet. Consider teaming up with an expert provider of FTP hosting.
This option affords you the visibility and control to manage all user permissions, restrict information properly across the company and prevent data from falling into the wrong hands -- all backed by the expertise and support of a knowledgeable provider. Look for some of the following benefits of a high-quality hosted SFTP provider to identify a solution that has the capabilities to secure your data:
- In-transit and At-rest Encryption: Data breaches are on the rise, with nearly 50% of all breaches involving unencrypted data. Encryption ensures your sensitive files are safe whether they’re on the move or stored on a server. (Source: Verizon Data Breach Investigations Report (DBIR) 2023)
- Intrusion Detection and Prevention: Cyberattacks occur every 39 seconds on average. Platforms with built-in intrusion detection and prevention systems can identify and stop threats before they compromise your data. (Source: University of Maryland, Clark School Study on Cybersecurity)
- Password Enforcement Controls: Weak passwords are responsible for 81% of hacking-related breaches. Enforcing strong password policies ensures better protection against unauthorized access. (Source: Verizon DBIR 2022)
- Multiple Secure Access Methods: Offering secure access methods like FTPS, SFTP, or HTTPS provides flexibility while reducing the risk of data interception—crucial as remote work grows by over 150% in recent years. (Source: FlexJobs & Global Workplace Analytics 2023 Report)
- Granular User Access Controls: Research shows 74% of insider threats stem from employees with unnecessary access. Granular controls let you restrict user permissions to only what’s needed, minimizing internal risks. (Source: IBM Cost of Insider Threats Report 2023)
- IP and Country Restrictions: Blocking access by IP or geographic location reduces your exposure to malicious activity from high-risk regions, which account for 58% of all cybercrime. (Source: Symantec Internet Security Threat Report 2022)
- Built-in Features to Ensure Regulatory Compliance: Organizations that fail compliance requirements can face fines averaging $4 million per incident. Compliance-ready platforms streamline processes for regulations like HIPAA, GDPR, or ITAR. (Source: Ponemon Institute Cost of Non-Compliance Study 2023)
On-demand Reporting and Audit Logs: Businesses with robust auditing processes detect security threats 2x faster. On-demand reporting keeps you prepared for audits and offers visibility into file activity to ensure accountability. (Source: SANS Institute Auditing Security Operations Report 2023)
Unfortunately, the security threats for businesses today are growing larger and more complex. Therefore, your business must be putting the protection of its critical data on the short list of major, urgent priorities. That means getting real about the file-sharing alternatives out there and adopting the appropriate solution to protect your company and its bottom line. Cheap or free isn’t always your best avenue. Neither is building your own server if you don’t have the resources and know-how to properly support it. Make sure you’re weighing these issues appropriately as you seek a file-sharing alternative that’s right for your company.