Over time, it's not uncommon for businesses to end up with a jumble of machines and software solutions to handle secure file transfers. It's never planned this way. Instead, a new partner comes on board with a new requirement, and one at a time, new solutions are built to fit these requirements. Maybe it's an FTP server running on a VM, combined with an SFTP server added to an unused backroom and an EDI system tossed in the mix too.
A decade ago, adding more machines and building a private set of file transfer infrastructure was really the only option to work with various partners and systems. But nowadays, this kind of file transfer infrastructure isn't a requirement.
Put simply, many organizations are building file transfer infrastructure they don't need, and it could be costing in time, money, and even security.
Why do so many companies build their own infrastructure?
It's not intentional, it's just what happens over time when a partner needs to send files. One partner will say, "we need SFTP," so someone will provision an SFTP server. Another will mention that "our system only exports via FTP" so an FTP server is spun up to reduce friction on their end. A big player might already have a well-oiled EDI machine working with great results, so the organization needs to slot in an AS2 gateway to work with them.
Each decision makes sense in isolation. SFTP is secure. AS2 is the standard for EDI transactions. FTP works with legacy systems. In the end, the organization is left with different pieces of file transfer infrastructure that were only built to satisfy partner requirements.
The cloud was meant to simplify and reduce the burden of on-prem requirements. Unfortunately, in some cases, it's only made it worse. Transferring files via SFTP already required an SFTP server, but most cloud storage platforms don't natively support SFTP connections. This means more infrastructure is needed for an on-prem MFT solution, which comes with its own set of requirements and a steep learning curve, meaning more time and resources spent to keep everything running smoothly.
It's a vicious cycle, but not one businesses need to be trapped in anymore.
What do modern organizations really need for secure file transfers?
If on-prem infrastructure isn't needed anymore, then what is it exactly that businesses need? Usually, it comes down to four things:
- Security assurances. There's a reason that secure is the essential part of secure file transfers. Transfers need to be locked down and important data kept protected.
- Multi-protocol support. One business requires SFTP, another FTP, and another AS2. Organizations need something that supports all the protocols their partners are using.
- Cloud storage integrations. Most businesses use cloud storage for some or all of their storage requirements. The problem is bridging the gap between where files end up and where they need to be, such as SFTP to SharePoint.
- Job scheduling and/or file-based automations. Manually retrieving files is infeasible at scale, while automating regular transfers saves resources and reduces the likelihood of errors at the same time.
At one time, the only realistic way to achieve all these things was by building file transfer infrastructure, but nowadays, cloud services can accomplish the same things. And often with better results, too.
Your storage already handles much of what MFT platforms do
Permissions, encryption, versioning, lifecycle management, compliance logging, these are important parts of MFT, and things your cloud storage does already. Modern cloud storage platforms are more than simply a place to store files; they're sharing and collaboration platforms as well.
Of course, there are still aspects that your storage doesn't handle, namely the four components listed above. However, if you can layer those capabilities on top of the storage platform, you get full MFT functionality without maintaining separate infrastructure.
Many organizations don't need or want to manage storage systems and on-prem infrastructure, but do so because there doesn't seem to be any viable alternatives. Cloud storage platforms offer many of the protections of on-prem storage--and enhanced versions of them--so integrating file transfer functionality is the missing component.
Now, that can all be done in the cloud without building infrastructure.
Cloud vs on-prem servers: which is best?
There's no universal time when cloud or on-prem servers are best because different businesses have different requirements (like a mandate to use dedicated infrastructure).
However, most businesses can get a number of benefits by using cloud file transfer infrastructure these days, especially if they haven't invested in building the infrastructure already.
Aren't cloud file transfer platforms insecure?
There's a widely-circulated belief that on-prem file transfer infrastructure is superior to the cloud in terms of security. After all, with on-prem, you have full control over devices, their connections, and security settings, and can quickly update or shutter them as needed. Right?
Not exactly.
This only really holds true if your organization is isolated and separated from the public internet. On a local network, there is minimal chance of a bad actor gaining access to the network, with physical security and vetting policies doing most of the legwork.
But when being used for inter-organizational file transfers, on-prem infrastructure isn't any more secure than SaaS offerings; in fact, they may be more susceptible in some cases.
Consider the numerous attacks against MFT providers in recent years. Petri.com states that 59% of organizations experienced MFT security incidents in 2025 alone. That's a massive amount, and having a typical, on-prem MFT platform did little to combat threats. In fact, in many cases, they were the culprit.
Since all files pass through the MFT platform, someone who gets admin access in some way has virtually full access to all of the organization's files. In the end, what was meant to be a convenient, safe way to transfer files can become the biggest threat if someone isn't proactive with keeping the infrastructure and software up to date.
Security advantages for modern cloud architecture
Modern SaaS platforms like Couchdrop use a cloud architecture as a security advantage. So how does this work in comparison to on-prem?
For Couchdrop specifically, all infrastructure is provisioned and managed through code with microservices and containerization architecture. Components are isolated and can be updated independently, while systems can be rapidly replaced if compromised without single points of failure.
The infrastructure is also continuously scanned for vulnerabilities, with behavioural monitoring that detects unusual behaviours that can indicate threats. Third-party pen tests are also performed regularly by security firms to test the security parameters.
But perhaps the biggest advantage is when it comes to updates and patching.
With on-prem infrastructure, updates and patches typically have to be applied manually, meaning that the machine requires dedicated downtime and that someone needs to both apply the updates/patches and manage the process. This leads to delays, which opens up risk, and MFT providers have to urge their customers to update as soon as possible.
Contrast that to a SaaS offering where patches are delivered at scale without downtime, and it's clear which option manages threats better. This isn't to say that cloud services are immune to cyberattacks, as many of the MFT exploits were zero-day vulnerabilities, but rather that cloud file transfer services can be better equipped to combat and react to attacks should they happen. The ability to send out updates and patches at scale compared to manually downloading and installing new versions is simply a massive advantage, both for making improvements and providing additional protection and fixes.
For more details on how Couchdrop is secure by design, see our Security page.
Component price increases and on-prem infrastructure costs
With the acceleration of AI technologies, there has been an increase in component pricing, and that is only expected to continue into 2026 and beyond. One of the main concerns that experts are forecasting right now is that RAM will become even more difficult to acquire, and that the prices will rise significantly. In fact, Network World predicts that server memory prices could double in 2026.
If cost wasn't already a concern for building on-prem infrastructure, it could become one if these price forecasts come to fruition. Creating or adding to on-prem infrastructure could become considerably more expensive in the near future, as will maintaining or upgrading components for scalability.
While it's true that these increases will affect cloud computing also--since after all, cloud computing is simply utilizing remote resources--this is offset by scale and existing machines. Because of the sheer number of machines that are already in place, and the discounts for purchasing at scale, cloud providers are better set to absorb the cost. Many have already stocked up on crucial components to stave off price increases.
According to an article from The Register, OVH founder Octave Klaba believes the cost of cloud services will rise 5-10% on average in the upcoming year. This is a sharp contrast to the price increases for certain types of RAM, which has had an increase of over 300% in some cases.
Building file transfer infrastructure is only going to get more expensive, so if it's not an absolute requirement for your organization, it's also money that could be better spent elsewhere.
Scalability and updates
We've already talked about how updating and patching cloud platforms is done automatically, but the same can be said for scalability.
With an on-prem MFT, scaling is a manual process. The business will pay for a set number of machine licenses, then need to configure the settings on those machines to work together. Scaling means simply adding more licenses, and consequently, more machines--and pretty soon you have a whole file transfer infrastructure you never planned on having.
A huge benefit of the cloud is that scaling is done automatically. And the user doesn't have to touch a thing. If there are changes or spikes in transfer requirements, the infrastructure provides what's needed to accommodate them. It's simple, straightforward, and effortless.
The infrastructure you already have is enough
In summary, what is it that businesses actually need to facilitate secure file transfers? They need protocol support for partner connectivity. They need EDI transformation for B2B transactions. They need workflow automation for validation and routing. They need audit trails for compliance.
They don't need a separate file transfer environment to get those things. There's no need to build file transfer infrastructure anymore if you don't need it. Instead, cloud-first organizations, from startups to enterprises, can get the same if not better capabilities using a cloud-native file transfer solution like Couchdrop.
See what Options Technology, a global provider of IT infrastructure to global Capital Markets firms, has to say about their experience with Couchdrop. And they aren't the only ones. Gen-AI Data Analytics platform Inzata has shifted to Couchdrop and found and claims there's nothing about Couchdrop they dislike or would change.
Want to see if Couchdrop is right for you? You can try the platform with instant access, free for 14 days with no credit card required. Still have questions about whether Couchdrop is a good fit for your specific use case? Book a call with our experts today to see if Couchdrop is a good fit.