What is managed file transfer?

Managed file transfer refers to a software or a service that manages the secure transfer of data from one computer to another through a network.

From its inception, FTP has made moving large volumes of bulk data between any two entities — including file servers, applications, and trading partners — possible. However, FTP (and other communication protocols such as HTTP and SMTP) do not, on their own, provide a way to secure or manage file transfers. Regardless of the lack of security and management capabilities, many companies have continued to transport large batches of structured and unstructured data using these protocols.

This practice is changing, however. According to Gartner Research, "Organizations of all sizes continue to invest in MFT platforms that enable secure and private transportation of files — across size and volume levels — internally and externally." MFT has also found a foothold among file transfer protocols and solutions because of its focus on facilitating the "transfer of large file sizes and volume."

MFT is often used by companies in the retail, banking, healthcare, manufacturing, telecommunication and insurance industries.

The global MFT market was estimated at US$1.3 billion in 2020 and is projected to reach US$2.4 billion by 2027.

While Managed File Transfer always covers the same features—reporting (e.g., notification of successful and unsuccessful file transfers), non-repudiation, audit trails, global visibility, automation of file transfer-related activities and processes, end-to-end security, and performance metrics/monitoring—the way it is used has a major impact on the nature of the appropriate solution. Gartner analysts agree on 4 different use cases for MFT:

Core functionality also includes the ability to encrypt files in transit and at rest.

MFT centers on the secure and efficient transfer of data, but most MFT software solutions offer additional features. Typically, MFT software offers reporting (e.g., notification of successful file transfers), non-repudiation, audit trails, global visibility, the ability to automate file transfer-related activities and processes, end-to-end security, and performance metrics. MFT applications are available as both on-premises licensed software packages and software-as-a-service ("SaaS") solutions, and can often be used in hybrid cloud setups.

MFT applications are characterized by having all or most of the following features:

One vendor in the description of their product identifies six issues with commercial use of FTP and even SFTP that Managed File Transfer seeks to address. The issues revolve around security weaknesses of traditional FTP in an increasing cyber threat environment and meeting increasing stringent regulatory compliance for data. While bespoke solutions may resolve some of these issues, MFT can address them with a standardized approach, along with the ability to be customized.

Managed file transfer (MFT) refers to a software or a service that manages the secure transfer of data from one computer to another through a network (e.g., the"Background · MFT Features · Typical MFT functionality · Alternative definition of...

Managed File Transfer (MFT) is a technology that allows organizations the secure and reliable electronic exchange of (often sensitive) data of any size.

Managed file transfer (MFT) is a technology platform that uses administrative controls, support for security protocols (like HTTPS, SFTP, FTPS), and automation

Managed File Transfer (MFT) solutions came into the market more recently to overcome many of the shortfalls of FTP. As the name implies, MFT

Both SFTP and MFT solutions work to protect data in transit, authenticate trading partner connections using passwords and pins, and satisfy strict requirements for data security laws such as Payment Card Industry Data Security Standards (PCI DSS), Health Insurance Portability and Accountability Act HIPAA, and the General Data Protection Regulation (GDPR). To better understand the difference, it’s important to dive deeper into the benefits they offer.

What’s MFT transfer protocol?

MFT transfer protocol includes various aspects of file transfer processes such as workflows, auditing, security, and administration using outperforming protocols, including file FTP, HTTP, secure FTP  (SFTP), and other methods. Many organizations rely on the MFT transfer protocol to support business needs like exchanging business-critical data with clients. MFT transfer protects data at rest, encrypts files with industry standards like OpenPGP (Pretty Good Privacy) and Advanced Encryption Standard (AES), automates batch transfers, enables users to collaborate and communicate with other teams, and tracks file transfer activity for compliance and reporting purposes. MFT transfer helps businesses simplify their file transfer processes by centralizing the process instead of using legacy scripts and multiple MFT tools.

Benefits of MFT Transfer

Data exchange is one of the significant benefits of using the MFT transfer protocol. Companies rely heavily on the exchange of electronic data every day. Due to the frequent movement of unstructured data, reports, contracts, project-related data, and customer-employee information internally and externally, organizations become more prone to data loss and manipulation. Organizations should use MFT servers to move data efficiently and securely. Several benefits make an MFT server the first choice of organizations looking for secure file transfer, including:

What’s SFTP transfer protocol?

Secure File Transfer Protocol (SFTP) is a protocol for transferring files over Secure Shell (SSH). Secure Shell provides a secure pathway to SFTP providing organizations with a high level of protection during file transfers. Similarly, for authentication, it offers an SSH key or a secure ID and password or a combination of both to provide high security around file transfer processes and user access.

Managed file transfer (MFT) is a technology platform that allows organizations to reliably exchange electronic data between systems and people in a secure way to meet compliance needs. Organizations increasingly rely on MFT to support their business needs and goals in a way that FTP cannot.