Hi!
The file function makes it possible to store files on different objects in IoT Open. It can be stored on Organization, and Installation.
Files can be used for administrative tasks, e.g. files are used to store images of devices. If you upload a photo of a device the image is stored as a file on the installation. It is also used to store manuals of devices and other documentation regarding installations and organizations.
Files can also be used for data. It you are writing an application or integration with IoT Open as a backend you might need to store settings and other things somewhere. Meta-data is the first option, but if your data is more complex it can be saved as for example a json-file with the file api on the installation or organization.
It can also be used to store firmware that some subsystems use to upgrade sensors and other devices.
This is things I know it is being used for today, other uses might also be out there and there are certainly more to come as it is a versatile function that can be used for many different things.