A data management and networking system and method are provided for automatically retrieving and storing data from a machine tool for distribution to a remote terminal over a network. Raw data related to a machine operation parameter, such as vibrations, are collected. This data is associated with machining operation data, such as the particular cutting tool being used, or the particular feature being cut by the cutting tool. An algorithm is applied to the raw data to generate a parametric representation of the data, thereby significantly reducing the size of the data. At least some data related to non-machining time is separated out, further reducing the size of the data. The associated data is sent to a network server for storage, where it may be accessed by one or more remote terminals.