Online File Sharing: Balancing Risk & Reward

Users and work groups are adopting online file sharing programs, like Box and Dropbox, in droves. Not too surprising, since these services are so easy to use and access anytime, anywhere and from any device.

The basic versions are free and require nothing to download, which most corporate firewalls would block. It’s no wonder that Box is now used by more than 100,000 businesses, seven million users and 77 percent of the Fortune 500, while Dropbox touts 45 million users, who save more than two billion files each week, and more than 80 percent of Fortune 100 companies use Dropbox (either officially or not).

"There's a revolution going on that's undoing years of crappy code and lousy customer service," says Box’s CEO, Aaron Levie.

What’s driving this revolution is that individual users and work groups are the ones driving IT adoption – instead of the more typical top-down, ram-it-down-their throats approach. And because of this adoption cycle, IT is now on the outside looking in.

IT is naturally concerned that confidential files and intellectual property will get uploaded to these cloud services, skirting any policies they may have established. They are also concerned about the provider’s security and their own ability to conform to regulatory compliance and legal discovery, since these files are outside of their normal purview.

But perhaps their greatest concern is control, since they cannot police what employees store in these services. And most users aren’t seeking the approval or blessing from their IT departments. They’re using these services, because it makes them more productive.

The good news is that these file sharing services are getting more and more enterprise-ready. They understand the importance of security and are adding new enterprise features and functionality each week. They are also investing in their developer ecosystem and partner networks to enhance their core functionality. This week, Box is launching its Box Innovation Network (http://blog.box.net/2011/11/03/bin/) to “spark innovation in the enterprise.”

To help IT regain some control and visibility, companies like LiveOffice are building out applications, like LiveOffice File Archive, a cloud-based service that archives documents from these popular online file sharing platforms. File Archive collects, stores and indexes all files uploaded to each file sharing service, allowing businesses to meet their compliance, e-discovery and retention requirements while maintaining productivity and supporting end users’ use of valuable collaboration tools.

It’s a new day in IT.

Enterprises can either bury their heads in the sand or accept this new reality of user-driven adoption. This means policies need to be established and communicated to all employees regarding the types of files that can be uploaded to these file sharing services. In addition, companies should be investing in the technology that helps protect their reputations, minimizes their legal and compliance exposure, and equips them with some visibility that helps regain some of their control.

To learn more, checkout Steve Duplessie’s (ESG’s Founder and Senior Analyst) take on the enterprise challenges of enabling online file sharing in this short video: http://vimeo.com/32270007.