Businesses are using more systems and applications than ever before. Some experts estimate that small businesses average over 150 SaaS applications, with research from Zylo showing the overall average across different size businesses is 350. While many of these work in isolation, in some cases data needs to be shared between them, which isn't always straightforward.
This is compounded when an external vendor, supplier, or partner is thrown in the mix who use their own systems and have their own security posture. As a result, many organizations are turning to management applications to handle data transfers, consolidation, and transformation.
Two examples of this purpose are MFT and iPaaS, both of which solve different parts of the problem. But when working together, MFT with iPaaS can eliminate multiple obstacles to securely transferring data between partners and platforms.
What is MFT?
Managed File Transfer--known as MFT--is a centralized hub for secure file transfers. It allows organizations to automate transfers using different protocols such as SFTP, FTP, AS2, and S3.
One of the main benefits of MFTs is that you can transfer files between platforms that can't natively send files between each other. For example, if you need to receive files from banks that can only send them via SFTP, and you need them in your SharePoint, an MFT makes that possible.
Having this centralized location for all file transfers to pass through also makes tracking, auditing, and compliance much simpler. You can easily check what files were transferred, where they came from, when they happened, and how they arrived.
MFTs go a step further by emphasizing file transfer automations. Most come with an in-platform automation builder that can schedule secure file transfers into or our of the platform or run workflows based on events. These workflows can range from pinging someone with a simple alert when a file is transferred to complex, multistep flows that decrypt, rename, copy, archive, and route files between across systems.
For a full breakdown of MFT and how it works, see What is Managed File Transfer?
What is iPaaS?
The term iPaaS stands for Integration Platform as a Service. "Integrations" here refers to software applications, and an iPaaS platform allows those different platforms to communicate and send data between each other.
Because different platforms use different terms and fields for describing the same set of data, it can be hard to send data between them. For instance, suppose that one system uses "last name" and another uses "surname". Even though they're referring to the same information, the application only recognizes its own term, so you couldn't send information marked as "last name" and have the other platform recognize it as "surname".
An iPaaS platform bridges this gap. Since there is a near limitless amount of potential names and requirements, the most common way to make the applications communicate is by data mapping. With this method, you would pick a specific field–like "last name"–and then where you want that data to go in the other platform–like "surname". Then, when a piece of data comes in with "last name", it will be pushed to the "surname" field of the other application.
Often, iPaaS transforms the data from one application so that it's usable by another. For example, you might have a billing platform for transactions and then a CRM where you want to maintain a customer database. An iPaaS workflow can make sure both platforms have the same data and that it's in a format that works for both of them.
Typically, iPaaS platforms work by building out workflows that map data, then having the process be entirely automated. This stops manual extraction and data reentry and makes sure different applications can work with the same data set.
There are iPaaS platforms for any size organization, from consumer-level like Zapier to enterprise-level like Workato.
How are iPaaS and MFT different?
Since both iPaaS and MFT exchange data with emphasis on automation, it might seem like they serve the same function. While there's definitely some overlap, the main difference is in the type of data being moved.
Managed File Transfer generally involves some kind of external party. You have a partner, vendor, or other third party that you need to send files to or receive files from. Because they aren't part of the organization, you don't want to add them to your storage accounts or give them access to internal systems. They might also be working in completely different platforms than your team, but you need to exchange files. MFTs work to bridge this gap between external and internal in a secure way.
On the other hand, iPaaS is used almost exclusively for internal processes. You have data from one of your platforms and you want it to work in another system that doesn't recognize the data as-is. You map the data so that it works and that the team is working with the same data across platforms.
While in some cases you can use iPaaS for transferring files with external parties, functionality is often limited; if it's possible at all. Likewise, many MFTs will have some basic file transformation processes like being able to rename, move, and copy a file, but are unlikely to be able to do much to the file contents themselves.
Why combine MFT and iPaaS?
Combining MFT with iPaaS allows you to handle all aspects of transferring files.
MFT provides a comprehensive platform for managing all aspects of file transfer with external parties. It unlocks the ability to send files using different protocols, automate transfers with complex workflows, and ensure that transfers meet strict compliance frameworks like HIPAA.
iPaaS platforms are excellent for automating internal processes and ensuring an organization is working with the same data. Building workflows can eliminate manual bottlenecks, making processes more efficient and less prone to errors.
Combining the two solutions lets you cover two important aspects of data automation: MFT allows you to securely exchange data with external parties, while iPaaS allows you to transform data to work with different internal systems. When combined, you can automate receiving data from a partner then transform it to automatically load it into different platforms and systems used by different teams across the organization.
How to use MFT and iPaaS together
Since iPaaS typically involves numerous cloud applications and MFT is traditionally an on-prem solution, getting the two to work together isn't always straightforward. For older MFT platforms, it involves custom scripting and building out integrations to force connections.
More modern cloud MFT solutions are built with the cloud in mind. Some even have native connections to iPaaS platforms, making the integration process simple and straightforward.
So once integrated, how do they work together in practice?
In order to transfer files, your systems have to support the protocol you use. SFTP is one of the most widely supported protocols, so you're able to connect to many systems with it. But it's not the only one. Some older, legacy systems use FTP, while more modern ones use newer protocols like S3. This is where MFT comes in.
Any good MFT platform will support multiple protocols, and MFT is more versatile than SFTP alone. With modern MFT platforms, Connections are usually simple, and often come pre-built for the most popular applications, with support for connecting via API for custom integrations.
Once you've received the files from an external party, the MFT can then push the file into the iPaaS. From there, the iPaaS platform can move the data to different applications and transform it when needed. Different flows can run depending on the data type and automate processes in seconds that would've taken hours previously.
By combining both MFT and iPaaS, it's possible to distribute files from external parties across multiple systems for different use cases.
Limitations of MFT and iPaaS
Combining MFT and iPaaS workflows unlocks the potential for complex workflows across disparate systems. But the combination still can't handle everything.
MFT will usually be able to update file metadata like changing the name or adding encryption, along with making a copy and moving/relocating the file. However it tends to have difficulties passing data to APIs (if it can at all) and mapping data into fields for systems to process. iPaaS paltforms help add this functionality, but has limitations of its own.
One of these problems is making deep data transformation. Most iPaaS also have a modest file size limit, with some maxining out below 1GB, making it less ideal for loading into data warehouses at scale. For that, you'd need an ELT/ETL application--which tends to come at a significantly higher cost.
Try Couchdrop - A combination of MFT and iPaaS
Couchdrop can both act as the iPaaS platform through the platform integrations and custom API connector, or it can pass data from other systems into an external iPaaS with one of its many integrations. For instance, receiving a file into a Azure Blob could automatially trigger a flow that pushes a copy of the data into a Celigo recipe.
Couchdrop simplifies using MFT for iPaaS so you can solve external and internal file transfer obstacles without trying to piece together a plethora of different products that weren't built to work in tandem. This makes various workflows flow together cooperatively instead of working in competition, and can greatly simplify moving data both inside and out of the organization.
To see why businesses choose Couchdrop as their solution to use MFT with iPaaS, try the platform for yourself. All new registrations can try Couchdrop free for 14 days with no credit card required. See the difference and start your free trial now.