What is P2P Computing?

In typical client/server computing, servers control the flow of data and information into and out of client computers. Essentially, the server runs the show. With peer-to-peer (P2P) computing, the server is removed from the equation, allowing computers—and more specifically, their users—to share files and other data directly, without going through a central server.

How does peer-to-peer computing work?The P2P model creates the effect of communal living. Imagine a group of thirtysomethings with common ideas about living together and sharing certain belongings. They have one cabinet where they put everything they're willing to share—clothes, CDs, food—but they can also have a locked cabinet where they store private belongings—diaries, savings bonds, photos. P2P works the same way. By downloading various types of software onto a hard drive, you can connect to a network of other users who have downloaded the same software. You specify which information on your hard drive you want to make public, and you can access what others have made public. So if you're looking for a photo of some special Olympic moment, and it's available on any of the hard drives of the connected computers, it's all yours.

Wait. Are you talking about Napster?Not necessarily. For some, P2P has become synonymous with Napster, the site that let music fans download software to locate and share music files from the hard drives of other members. (The problem, of course, with sharing free music files is that the people who create the music aren't being compensated. That's why the recording industry took Napster to court.) According to purists, Napster doesn't fit in the P2P category because it keeps a central database of users. Ultimately, the attention that the site has garnered may have hurt the P2P community.

What will P2P mean to my business?Most likely, you now send files to other people using clunky e-mail attachments that are dependent on a central server and can be intercepted. P2P allows people to share files independently, without going through servers. E-commerce could benefit as well—think of a Napsterlike service that charges members. And if members of B2B exchanges could use P2P to cut out the middlemen that serve them, such exchanges could become a whole lot more profitable for buyers and sellers.

What are we waiting for? Let's go.Not so fast. Dozens of startups are offering P2P software, but the market is still brand-new, and shake-ups are inevitable. P2P has yet to make friends with most IT departments, because when users' workstations start doing the work of servers, technology people—accustomed to being responsible for what information people have and how they pass it along—start worrying about bandwidth and security. Take away that control, and you invite upheaval. So while it may have a long way to go, P2P's potential is hard to argue. After all, you may recall the last such idea created under the rubric "sharing and connecting." It was called the World Wide Web.