Data Exchange - Direct Transfer:
This is further understood that if the number of systems is more, exchange through neutral file would be much more effective.
See when N = 10. Number of direct translators required 10 × 9 = 90.
Number of translators through neutral file = 2 × 10 = 20.
If the transfer is among (almost) the similar type of systems (this means typically that the software packages must be of the similar name and similar version), then the most efficient way of transfer is by direct exchange .No conversions or standards are required.
Figure: Data Exchange from System A to B; Direct Transfer
If the two concerned systems are of different type, then the file exported by system A may not be expected to be understood by system B. After that some sort of conversion has to take place. The issues about conversion are discussed later.