An Extranet is a private network that enables secure communication and data sharing between an organization and external partners, suppliers, or clients. Unlike an intranet, which is limited to internal users, an extranet provides controlled access to selected third parties, improving collaboration and business efficiency.

In cloud-based financial services, for example, an extranet can be used to securely exchange transaction data, compliance reports, and risk analysis between financial institutions. Cloud storage solutionsenhance extranet functionality by offering encrypted file storage, access controls, and real-time collaboration tools, ensuring that external stakeholders can safely access critical business data while maintaining security and compliance.