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If you use a connection file to connect to a data source, Excel copies the connection information from the connection file into the Excel workbook.When you make changes by using the Connection Properties dialog box, you are editing the data connection information that is stored in the current Excel workbook and not the original data connection file that may have been used to create the connection (indicated by the file name that is displayed in the Connection File property on the Definition tab).Data in an Excel workbook can come from two different locations.The data may be stored directly in the workbook, or it may be stored in an external data source, such as a text file, a database, or an Online Analytical Processing (OLAP) cube.If the data source is a database, make sure that the database is not opened in exclusive mode.If the data source is a text file or a spreadsheet, make sure that another user does not have it open for exclusive access.(On the Data tab, in the Get External Data group, click Connections.) You can use this dialog box to do the following: Connection files are particularly useful for sharing connections on a consistent basis, making connections more discoverable, helping to improve security of connections, and facilitating data source administration.The best way to share connection files is to put them in a secure and trusted location, such as a network folder or Share Point library, where users can read the file but only designated users can modify the file.
You can share connection files with other people to give them the same access that you have to an external data source.
You can easily convert other traditional connection files (DSN, UDL, and query files) to an ODC file by opening the connection file and then clicking the Export Connection File button on the Definition tab of the Connection Properties dialog box.