Whether it’s simple email attachments or sharing entire projects with partners and suppliers, most businesses need to exchange files with other organizations. At a smaller scale, emailing files may be enough. But this method quickly becomes obsolete when working with various organizations and software with different requirements, both for efficiency and for security.
A solution for both of these issues and more is Managed File Transfer (MFT). As the name suggests, file transfers are “managed” by an intermediary that can add security, transform file metadata, and automate file transfers. But what exactly is managed file transfer? In this article, we'll cover what Managed File Transfer is and typical MFT features so you can better understand these platforms and how they can be beneficial to your organization.
What exactly is Managed File Transfer?
"Managed File Transfer" is a marketing term instead of a technical description, so there isn't a concrete definition of what unequivocally makes something a "managed file transfer platform".
The term "Managed File Transfer" was developed by Frank Kenney while a research director at Gartner. While there are multiple iterations of the initial definition, currently, Tech Target defines MFT as "sophisticated tools that enable organizations to centrally manage, monitor, secure, and schedule file transfers".
So what does this encompass specifically?
You can think of MFT as a type of software that provides a centralized platform for all of your file transfers, like a hub or a station that all files have to stop at before going to the final destination. During this temporary stop, the hub routes each file to a specific destination and potentially makes some changes at the same time, like making a copy, updating the name, or adding encryption.
Because Managed File Transfer has a broad definition, there is a lot of variation on what fits the definition. Unlike terms like AES-256 bit encryption and the SFTP protocol, which are unambiguous and specific, "MFTs" can be anything from simple software to an interconnected collection of servers on dedicated infrastructure using AI-powered optimization and integration capabilities.
However, since this is a marketing term, we won't focus too much on the semantics and instead focus on the reason these platforms exist and some features they should have, like:
- Have a centralized management. Jobs, organization settings, and scheduling need to be managed in one place.
- Support multiple transfer protocols. It should be able to connect to multiple different types of systems and bridge connection gaps between them.
- Emphasize security. The platform should have security features, such as end-to-end encryption, in place.
- Include an automation component. There should be the option to schedule or automate transfer workflows.
- Have logging and reporting capabilities. Transfers and system events should be tracked and easily audited.
We'll break down each of these benefits in detail and explain why they are important for organizations.
MFTs and centralized management
As mentioned above, MFTs are a centralized hub where file transfers and job settings are managed. So why bother stopping at this hub? Why not go straight to the destination instead?
The main reason is that a managed file transfer platform can work as a unified platform that handles all aspects of the transfer process. Usually, different components would be piecemeal solutions that you would have to combine together. For example, you could have an SFTP server for storing files, use Power Automate to create an SFTP automation to pull files regularly, then a secure file sharing application to create secure links to share files with the end user.
An MFT platform combines all of these aspects into a single, dedicated solution that is managed in the same interface. Bringing all this information and control in one place gives an overarching view and helps you quickly modify specific aspects without having to delve into dozens of separate systems.
Another important reason is that an MFT helps bridge the gap by supporting multiple protocols.
MFTs support multiple protocols
One of the main obstacles to transferring files is when different systems don't support the same protocol. This means they simply can't transfer files between each other without something in the middle to facilitate the transfer.
MFT software supports multiple protocols like SFTP, FTP, SCP, and AS2. Suppose that you have a piece of industry-specialized software that generates important reports for an external analyst who’s working in Google Workspace. If the software only supports FTP connections, how do you get that information to them?
Since MFT platforms use multiple protocols, this isn’t an issue–even when a direct connection would normally be impossible–because the hub makes sure files can transfer successfully and securely.
MFTs enhance security
Security in MFTs is a critical component, especially since file exchange typically involves external parties. MFT adds an extra layer of security to file transfers, which helps safeguard files in a few ways.
One is by having files encrypted at all stages of the transfer process, both in transit and at rest. This is a huge benefit when pulling from a system that only supports FTP or less secure protocols, such as forcing FTPS (FTP over SSL) connections.
Another way that MFT enhances security is by being the one place to manage all things related to transferring files. A good MFT system will include user management and access controls, which can be quickly updated as needs change and new users need to be included or older ones removed. Bringing all this information and control in one place helps you quickly find security gaps to plug without having to delve deeply into dozens of separate systems.
As more and more file transfers are being done electronically, compliance standards have emerged to help make sure that files with sensitive information aren’t exposed to people who shouldn’t have access to them. Standards like GDPR and PCI have specific requirements that must be met to stop organizations from being in breach. And more nebulous standards like HIPAA have strict conditions that must be met that aren’t as straightforward as ticking off checkboxes.
Some MFT platforms can help meet these compliance standards and also automate the entire transfer process.
MFTs and automation
Standard file transfers are straightforward; you move a file from one location to another as needed, and that's it. For some organizations that rarely need to move data, this method works fine.
But when doing dozens, hundreds, or thousands of transfers, ad-hoc transfers are infeasible, as they reduce efficiency and run the risk of human error. This is where automation comes in. Transfer parameters can be set up to connect different platforms, route files between them (sometimes with the option of conditional filtering), and run processing rules at the same time, such as renaming a file to fit the naming conventions of a SharePoint site.
Imagine that you have a simple process where a piece of software creates reports, and you need to distribute those reports to three different external companies every day and rename them to fit your naming conventions, a process that takes 15 minutes every day. It might only take a quarter of an hour to manually do the process, but that time adds up fast, resulting in over 90 hours a year of wasted time–if everything goes right every time.
Start scaling that process with more reports and companies, and you can see how MFT can be a massive time saver. Once the automations are built, they can run in the background until the parameters change, in which case the workflow can be edited once to update to the new requirements.
MFTs include logging and reporting
When transferring files, it's essential to have a way to keep track of files, make sure they’re protected during the transfer process, and have a way to know that they actually arrived. This is especially critical for auditing.
An MFT platform can greatly simplify the audit process by clearly keeping detailed logs of actions and events. At any point, you should be able to view who has logged into the platform, what actions they took, which files were transferred, and whether or not there were any failures.
Should all organizations use MFTs?
Managed File Transfer platforms offer a lot of benefits, but these aren't necessary in all scenarios. The main downsides to these platforms is that they tend to be complicated to set up, deploy, and use, and often come with a high cost to justify all of the features.
For instance, a solo photographer looking to move photos from a camera to cloud storage might not need a full suite of tools and support for multiple protocols, whereas an MFT can provide many advantages for financial institutions that deal with important customer data.
When a business has few (or zero) file transfers involving external parties, an MFT platform might be overkill. But as organizations scale, the benefits become more clear-cut. Because of the perceived costs and complexity, many organizations that could benefit from using MFT aren't doing so.
But with a modern alternative to traditional MFT like Couchdrop, these concerns aren't an issue.
Try the simple and modern file transfer platform
Couchdrop is an alternative to traditional managed file transfer platforms with a focus on simplicity. A major advantage is that Couchcrop offers the same power, control, and security while being fully cloud native.
Since Couchdrop is entirely in the cloud, there’s no infrastructure setup or management. This also enables organizations to transfer files without ever storing file data at any point–Couchdrop simply works as an intermediary to shift files between existing storage like Azure Blob, Google Workspace, and Dropbox.
Couchdrop deploys instantly and is ready to use right away. You can also try it for yourself with an instant-access 14-day free trial with no credit card required. To start your free trial, sign up for an account now, or you can learn more by booking a personalized demo.