As organizations become more data-driven, the volumes of data they generate and exchange continue to explode. IDC predicts that global data creation and replication will experience a 23% CAGR from 2018 to 2025, reaching 163 zettabytes by 2025.
With this data explosion comes a pressing need for secure, reliable data exchange between systems, applications and partners. However, native file transfer protocols like FTP and HTTP have serious limitations when it comes to security, speed and scalability.
This is where Managed File Transfer (MFT) comes in – providing a critical capability for today‘s data-driven businesses.
In this comprehensive guide, we‘ll explore what exactly MFT is, the key benefits it offers, real-world examples of MFT in action, and tips for evaluating solutions. Let‘s get started!
What is Managed File Transfer?
At a basic level, Managed File Transfer (MFT) refers to specialized software solutions that facilitate and manage the secure transfer of data files between computer systems, applications and users.
The key objective of MFT is to improve upon and replace older, less secure protocols like FTP and HTTP – offering more advanced capabilities to keep up with modern demands.
More specifically, MFT solutions aim to provide a centralized, easy way to:
- Automate data and file transfers according to set schedules or triggers
- Accelerate transfer speeds for large files or data sets
- Monitor and track the status of file operations in real-time
- Secure data both in transit and at rest with robust encryption
- Report on and audit trails for compliance needs
- Transform or translate files as needed during transfers
- Integrate seamlessly with existing apps and workflows via APIs
In a nutshell, MFT gives organizations much needed visibility and control over high-volume data exchanges and file operations between all internal and external systems.
Brief History of MFT
Managed file transfer solutions evolved to address significant security and reliability gaps in old protocols like FTP and HTTP.
FTP (file transfer protocol), developed in 1971, offered simple standardized file transfers but had no built-in security. SFTP later added SSH encryption but still lacked automation features.
HTTP (hypertext transfer protocol) powered web applications and content delivery but also wasn‘t designed for secure file operations.
MFT solutions emerged in the late 90s and early 2000s to meet the demands of growing data volumes and security needs across industries. By providing centralized control, encryption, automation and reporting, MFT improved upon FTP and HTTP in major ways.
Over the years, MFT systems have rapidly evolved to include API integration, cloud deployment options, and deep analytics capabilities. Leading MFT vendors today like IBM Aspera, Axway, Progress Software, Primeur, Software AG, Oracle, and GlobalSCAPE offer full-featured platforms.
Now let‘s explore the major benefits driving MFT adoption.
Key Benefits of Using Managed File Transfer
1. Enhanced Security for Data In Transit and At Rest
For any modern organization, data security is a top priority and concern – especially with sensitive customer information, financial data, healthcare records and intellectual property.
MFT solutions enable robust encryption both for data in transit over networks and at rest within systems using industry standard protocols:
- SFTP (SSH File Transfer Protocol) leverages SSH encryption in transit
- FTPS (FTP-SSL) adds SSL/TLS encryption to traditional FTP
- HTTPS (Hypertext Transfer Protocol Secure) enables transfer over SSL/TLS
Other secure protocols like AS2, FTPSSH, Open PGP, and Reverse Proxy are also commonly supported to provide flexibility.
Beyond encryption, MFT also incorporates:
- Data integrity checks using hash algorithms to prevent tampering
- Multi-factor authentication (MFA) for users
- User activity logging for auditing
- DLP (data loss prevention) capabilities
These additional security controls reliably protect sensitive data from unauthorized access during transfers or internal misuse – across systems on-premises and in the cloud.
2. High Speed Automated Transfers & Scheduling
Manual data transfers using FTP/SFTP or HTTP can be extremely slow and resource intensive.
MFT solutions speed up transfer times significantly through built-in acceleration techniques like parallel streaming, compression, deduplication and more. Transfers that take hours can complete in minutes!
Further, MFT enables setting up automated scheduling and triggers for recurring file operations. This removes the need for constant manual oversight. Files get routed and delivered to destinations reliably without admin effort.
Schedulers allow setting up sophisticated workflows across platforms. Tasks can be chained and interdependent with configuration of complex business rules.
Automation frees up IT teams for more strategic initiatives rather than perpetual data wrangling. Self-service portals also enable business users to handle transfers securely without IT help.
3. Centralized Monitoring, Alerting & Control
Native protocols like FTP and HTTP provide little visibility into active transfers and operations. Failed batch jobs can go undetected for hours leading to lengthy delays.
MFT solutions centralize monitoring of all transfers with real-time dashboards and alerts on status and errors. Issues can be caught proactively before downstream impact.
Granular logging and reporting also enables complete auditing and traceability across the data flow lifecycle – critical for meeting compliance reporting obligations.
These capabilities ensure continuous visibility and control over high volume file movement between all internal platforms and external endpoints. Troubleshooting and remediation can also occur much quicker.
4. Protocol Consolidation & Ecosystem Connectivity
Organizations often use a patchwork of several protocols like FTP, SFTP, HTTP, AS2, and proprietary APIs for different applications, partners and network segments.
This leads to fragmented visibility and insecure data flows into and out of the organization through various endpoints.
With support for a wide array of modern and legacy protocols, MFT solutions consolidate and centralize control over all file transfers and ecosystem exchanges. Protocols can be bridged and adapted based on the source and destination.
Robust connectivity options ensures seamless transfers between internal servers, cloud services, B2B integration gateways, and trading partners.
5. Data Transformation, File Translation, Compression/Decompression
MFT platforms provide sophisticated built-in capabilities for manipulating data in transit – beyond just standard transportation.
File contents can be programmatically transformed or translated to different formats as required on either end of the transfer.
Some common examples include:
- ConvertingCSV to XML or JSON
- Encrypting/decrypting payload contents
- Compressing files for faster transfers
- Splitting large files into blocks for parallel streaming
This flexibility allows seamlessly connecting disparate apps that may use different file types without needing custom programming.
6. Regulatory Compliance & Audit Trails
For many organizations, especially in finance, healthcare, energy and the public sector, regulatory compliance is a top priority.
Specific regulations like HIPAA, PCI DSS, SOX, GLBA, GDPR and CCPA mandate stringent security standards, auditability and reporting around data access, storage and transfers.
MFT solutions help satisfy these requirements in multiple ways:
- End-to-end encryption of sensitive data
- Access controls, user activity logging and alerts
- Detailed audit trails of all transfer activity
- Customized reporting for internal and regulatory audits
- Data loss prevention capabilities
- Policy-driven file routing to ensure compliance
7. Easy Integration via APIs & Connectors
A major benefit of MFT platforms is easy integration into the existing application, data and tool landscape.
Most MFT solutions provide REST APIs, webhooks, command line interface (CLI), and template connectors to enable programmatic integration with other systems:
- CRM, ERP, HR platforms
- Databases, data warehouses, BI tools
- Cloud storage services like S3, Azure Blob
- Legacy homegrown applications and systems
- Partner SSO portals and B2B gateways
This enables easy orchestration of MFT within any end-to-end workflows and data pipelines without complex coding. Users can also leverage self-service options to setup transfers.
Now let‘s look at some real-world examples and use cases where MFT delivers business value.
Industry Use Cases & Examples Where MFT Provides Value
While almost every industry can benefit from MFT capabilities, some sectors gain more advantages due to large file sizes, ecosystem complexity or compliance needs.
Media & Entertainment
- Secure digital media asset distribution
- Facilitating content collaboration
- Distributing movies and trailers to partners
Manufacturing & Automotive
- Sharing large CAD/CAM design files
- Secure supply chain data exchange
- Software updates and patch delivery
Healthcare & Life Sciences
- Accelerating research data sharing
- Orchestrating patient record transfers
- Secure pharmacy data exchange
Finance & Banking
- High speed interbank transfers
- Secure customer data sharing
- Automating reporting and statements
Energy, Utilities, Government
- Critical infrastructure data protection
- Smart meter data collection
- Regulatory compliance and auditing
MFT allows these industries to leverage automation, security, reliability at scale for their biggest data transfer needs.
Let‘s look at a few real-world examples.
Secure Media Content Distribution
Cinedigm is a leading producer of premium OTT channels and content. They rely on MFT to securely and rapidly distribute large media assets worldwide to platforms like Amazon, Hulu, Roku and more.
"We have 10 petabytes of assets that traverse the globe as a media company. MFT solutions make this possible by accelerating transfers that used to take 4 to 5 days down to just 4 to 5 hours."
Automating Financial Data Exchange
The National Payments Corporation of India leverages MFT to automate interbank financial transfers. This enables securely routing millions of daily payment instructions between member banks.
"MFT solutions have helped us scale transaction volumes from just 50k daily in 2008 to over 31 million a day now. Our platform can support over a billion interbank transactions 24×7."
Healthcare Data Security & Compliance
A leading US hospital network uses a centralized MFT system to orchestrate secure data exchange with insurance providers, clinics, labs and other partners. This ensures HIPAA compliance with end-to-end encryption, access controls, detailed audit trails and threat protection.
"We could not manage compliant data sharing at scale without MFT. Orchestrating transfers via APIs ensures patients records are routed to only authorized parties."
These examples highlight how MFT powers mission-critical data exchange across sectors while providing automation, security and scalability.
Next let‘s explore what to consider when evaluating MFT solutions.
Key Considerations When Selecting an MFT Platform
Here are some critical factors organizations should evaluate when researching MFT vendors:
Protocols Supported: The solution must support all the essential legacy (FTP, SFTP) and modern (AS2, HTTP/S, WebDAV etc.) protocols required across your ecosystem.
Infrastructure Compatibility: Assessment of current networks, applications and endpoints is needed to ensure seamless integration and deployment.
Cloud Services Supported: Many opt for cloud-native MFT SaaS platforms vs on-premises servers. Review options.
Ease of Use: Intuitive browser-based interfaces, prebuilt templates, and workflows speed up internal adoption.
Encryption & Security: MFT platforms should support robust standards like Open PGP, SSL/TLS, SFTP and offer extensive controls.
Automation Features: Evaluate workflow orchestration, scheduling, error handling and parallel transfer options that enhance speed and reliability.
Analytics Capabilities: Analytics dashboards providing visibility into operations, auditing and reports are critical for monitoring and compliance.
Breadth of APIs & Integration: MFT systems need to connect easily to existing apps and tools via comprehensive REST APIs, webhooks, CLI etc.
On-prem vs SaaS Deployment: Assess internal infrastructure and preferences to pick between on-premises, cloud, hybrid and PaaS/IaaS deployments.
Vendor Experience & Support: Given mission-critical use, opt for seasoned MFT vendors with proven track records of global 24/7 enterprise support.
Key Takeaways & Next Steps
Here are the key takeaways from this comprehensive guide on managed file transfer:
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MFT solutions offer centralized control, security, speed, and reliability for orchestrating high-volume data exchange between diverse systems and partners.
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Robust encryption, automation, scalability, compliance and ecosystem connectivity are key benefits MFT provides over older protocols like FTP and HTTP.
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Media, manufacturing, finance, healthcare and other industries with large files, integration complexity or regulation needs gain the most advantages from MFT.
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When evaluating options, consider supported protocols, infrastructure, security, automation, analytics, APIs and total vendor experience.
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Leading MFT platforms from IBM Aspera, Axway, Progress Software, Primeur, Software AG, Oracle and others enable securing your data exchange at scale.
Organizations looking to learn more about maximizing the value of MFT solutions for their data transfer needs can get in touch with me here. I would be glad to offer strategic guidance based on over a decade of experience in the data integration and analytics space.