SFTP, MFT, and iPaaS can all be used for file workflows, but each method has its own set of pros and cons. However, there is quite a bit of overlap between them, which can make it confusing when trying to determine the differences and which method is right for your use case.
In this article, we break down the differences between MFT, SFTP, and iPaaS so you can decide which option is best for your needs.
What is SFTP?
SFTP stands for Secure File Transfer Protocol, which is a protocol used to securely send files between two systems. At its most basic level, SFTP lets two systems--a local and remote host--communicate and transfer data between one another with powerful encryption that adds another layer of security to file transfers.
Is SFTP the same as FTP?
You may have heard of FTP (File Transfer Protocol), one of the original methods to transfer files. FTP was an easy way to transfer files to or from a local host. The problem? It was unencrypted, which became more of a problem as technologies advanced. Enter SFTP, or Secure File Transfer Protocol, the new go-to method for sending files safely over the internet. While they have a similar name, FTP and SFTP are actually two entirely separate protocols.
Think of SFTP like an unbreakable tunnel for your files. Files travel through it safely while outsiders can't get a glimpse of what's inside, let alone break in and steal the files. An SFTP server is one end of the tunnel, pushing or pulling files through the tunnel safely.
How is SFTP secure?
SFTP uses Secure Shell (SSH) encryption, a method to securely send commands over a network. SFTP supports both password and key-based authentication and isn't isolated to a single operating system. Simple file transfers is probably the most common use of SFTP, but it also has file management capabilities like the ability to copy or rename files and folders.
For a more in-depth look into SFTP, see our article What is SFTP?
What is MFT?
MFT stands for Managed File Transfer, which is a platform that facilitates a transfer between different systems. An MFT platform not only transfers data, but it can also act on files by performing actions like running workflows to download, rename, and move any files that are uploaded to a specific folder. The specific functions will depend on the platform, but think of MFT as a one-stop shop for all things related to transferring files.
If that sounds a bit vague, it's because that unlike SFTP, there isn't a concrete definition of what managed file transfer is. The term is often attributed to Frank Kenney in 2008 to refer to a collection of solutions that work together for secure, automated file transfers. Since that's not a clear-cut definition, it's not always easy to compare solutions.
For our purposes here, we'll define Managed File Transfer as a centralised platform for file transfers, one place to decide what to move, where to move, and how to move files.
How does Managed File Transfer (MFT) work?
Since MFT can refer to many different solutions, the specifics for how they work might be different, but one way to think of it is the Swiss Army knife of file transfers. In most cases, your MFT platform will be what you use to manage the entire file transfer process, not just moving the files between the source and destination.
While MFT will almost always include SFTP, it also has support for other transfer protocols such as FTP, SCP, and Rsync. This gives wider flexibility because a platform might only support one of these, but you can then move files between systems that support other ones. For instance, you can use MFT to pull files from a system that supports FTP connections only, then push to another system that supports SFTP only, using MFT as the bridge between the two.
One of the most common characteristics of an MFT platform is the ability to automate file transfers. Automating file transfers offers many advantages, such as faster processing, a lower likelihood of errors, and fewer IT resources required. This is particularly powerful when combined with multi-protocol support, as it can completely automate secure file transfers between platforms that normally couldn't transfer files to each other at all.
MFT is a technology platform that encompasses all aspects of file transfer, including moving, protecting, and updating files. For more details, see our article What is Managed File Transfer?
How is MFT different from SFTP?
You can probably see that comparing SFTP and MFT is like comparing oranges and tangerines; one is sometimes seen as part of the other, making it hard to directly compare. MFT can use the SFTP protocol as a method to transfer files, so SFTP can be part of MFT, but doesn't have to be.
If MFT is more powerful, why ever use SFTP?
It's true that MFT offers more capabilities, better security, and increased flexibility compared to SFTP (and sometimes includes SFTP itself). So why would you ever use a basic SFTP server over an MFT platform?
Typically, SFTP is the stronger choice in two categories: complexity and price.
Some MFT servers require reading through pages of documentation, going through complex onboarding, and configuring advanced infrastructure just to get started. They'll typically require stronger devices to power, and take some time to get up and running properly. SFTP is built into most devices by default, and all you need to do is find out how to connect, which can be done using something like an SFTP client that has a graphical interface. When you have the connection details, you can get started in minutes. For simple file transfers that don't happen often, SFTP can be the easier option.
While MFT is much more capable, that capability comes at a price. Expect to pay several times more for MFT than for an SFTP server, sometimes 10x or more. When you need everything that comes with a managed file transfer platform, this is a good investment. But if you only need to move a couple of files every few days, you'll be paying a lot more to accomplish the task, and the extra benefits of MFT probably won't be useful to you anyway.
SFTP, on the other hand, can be set up much faster with minimal resources. Nowadays, it's even possible to have an instantly-deployed SFTP server by using a cloud SFTP provider. For small amounts of irregular file transfers, SFTP's simplicity and lower use mean it's still the preferred choice for many use cases.
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.
How does iPaaS work?
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.
How are iPaaS and MFT different?
Since both iPaaS and MFT have an 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, when 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.
MFT vs SFTP vs iPaaS: Making the right choice for your organization
With the right tool, you can get more than something that can move files from one place to another. Choosing between SFTP, iPaaS, and MFT is about finding the right solution to support your business operations and file transfer needs.
SFTP alone offers a solid, secure method for transferring files. It's a great choice if you have a business that needs simple file transfer capabilities and you have a smaller budget. You simply need an SFTP server and then external users to connect to it. Some modern SFTP servers even connect directly to cloud storage.
MFT provides a comprehensive platform for managing all aspects of file transfer. It's ideal for businesses with complex workflows, high security and compliance needs, or those looking to automate and optimize their file transfer processes. Because of the more advanced settings, traditional MFT had been quite challenging ot set up and maintain, but some modern MFT platforms completely eliminate infrastructure management.
An iPaaS platform is 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. There are iPaaS platforms for any size organization, from consumer-level like Zapier to enterprise-level like Workato.
Because each of these solutions have different use cases, it's not uncommon for organizations to use a combination of the three in some form.
Using SFTP, MFT, and iPaaS together
It's possible to use SFTP, MFT, and iPaaS platforms together to cover all of the different use cases at once.
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. In some cases, this may involve custom scripting or a few steps to find out how to make the connection, but from there, it's relatively straightforward. For instance, you can connect to SFTP via the command line and run transfers and file actions directly from there.
Any good MFT platform will support SFTP, so it has all the same capabilities plus some. Connections are usually simpler, and often come pre-built for the most popular applications, with support for connecting via API for custom integrations. 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 won't make a change to the file data itself like updating rows in a CSV. For that, you'd need an ELT/ETL application--which tends to come at a significantly higher cost.
Once you've received the files from an external party, an iPaaS platform can help move the data to different applications and transform it when needed. Various workflows can serve different purposes, and when combined with MFT or SFTP, it's possible to distribute files from external parties across multiple systems for different use cases.
A modern MFT like Couchdrop can even have native integrations with iPaaS platforms, meaning 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.
Try Couchdrop for a simpler MFT platform
With Couchdrop, you get enterprise-grade file transfer features without the enterprise-grade difficulties. Couchdrop connects to dozens of platforms and gives you both an SFTP server and an MFT platform, so you never have to choose between one or the other. All this without needing to write a line of code, set up virtual machines, or update config files. Couchdrop does it all for you.
Get the power of managed file transfer without enormous costs and fast and easy setup with Couchdrop. Try Couchdrop free for 14 days, with no credit card or demo required. Sign up now to get started.