Should you self-host your SFTP server or use a Managed Service?

When you need a secure way to transfer files, SFTP seems like the obvious solution: it's secure, widespread, and time-tested. And for the majority of people and organizations, it's the best option. However, using the SFTP protocol requires having access to an SFTP server, meaning you have to choose between building your own or using a managed service. But which is right for you? This decision isn't just about tech preferences, it's about your budget, security, and how much time you have to spend managing IT infrastructure.

What's the real difference between self-hosted and managed SFTP servers?

Both self-hosted and managed SFTP services end up with you having a functional server in the end, so what's the real difference? 

Self-hosting means you're installing SFTP software on your own hardware or virtual servers. It's DIY file transfer – you download the software, configure it, maintain it, and troubleshoot when things (inevitably) break.

On the other hand, traditional managed services mean someone else handles the hardware and infrastructure, but on their terms. While in some cases this can be in your favor, a lot of providers function like the old-school enterprise software model but for SFTP. This means you're typically locked into lengthy contracts with complex pricing that mysteriously increases every year, and the chance of sudden changes to your service that you don't want. 

Self-hosted vs managed

While there are some drawbacks to a managed service, many organizations are choosing to make the move. One reason is because a fully on-prem solution typically costs the equivalent of several months or even years worth of a managed solution. And that's when everything works properly and continues to do so.

Testing and trialing is also much more difficult and time-consuming or not possible at all, and having the backing of a company in the space helps reassure that you'll be getting a quality implementation. Overall, the benefits outweigh the cons of self-hosting and managing SFTP servers. 

Why do people still self-host SFTP servers?

Self-hosted SFTP servers are expensive to set up, run, and manage. You either have to purchase all the hardware for yourself or provision virtual machines, then make sure everything works and continues to function. 

When using VMs, someone else is still in control of the machines, only you also have the work of maintenance etc. It's similar to managed services but with manual work.

So why do people still self-host SFTP servers? 

Control is the main selling point. You decide exactly how everything works. Security settings, user permissions, integration with other systems, it's all up to you. There isn't a company that dictates what functionality you do or don't get, and you're only limited by your own time and technical expertise. The downside of this? It's all up to you. 

Some companies think self-hosting on-prem servers saves money, especially if they already have servers and someone who knows their way around Linux. After all, there's no monthly fees to pay, just the one-time setup costs and someone to check in every once in a while to make sure nothing's broken.

And in some cases, this is absolutely the case. For companies with serious regulatory requirements, controlling every aspect of their file transfers gives them the peace of knowing no one else can ruin their setup. When you manage the whole stack, you know exactly how your security is implemented and its limitations. 

If you have the infrastructure in place, the knowledge to run it, and the skills to keep transfers in compliance, self-hosted could be a good option. But if you're missing any of these, doing everything on your own is often more pain than it's worth, and not just in cost. 

What's the pain of maintaining your own SFTP server?

Setting up an SFTP server isn't rocket science, but it's far from plug-and-play. You need to understand SSH configuration, user management, key authentication, and security best practices to get started.

And setup is just the beginning. Your server will need regular updates, security patches, and monitoring. You'll need to add any new users and system integrations. When things break (and they probably will), you're the one getting alerts at 6 PM on a Friday. 

Infrastructure is another headache. You need somewhere to host this thing, whether it's physical hardware in your office, a data center, or virtual machines. Plus don't forget backups and redundancy, especially when business-critical transfers are involved. 

Then there are the external related costs and issues. You're in charge of networking and keeping systems connected. There's electricity and possibly storage costs. Someone needs to take the time to fix components and install updates and patches. 

These challenges are why many organizations look for alternatives, but traditional managed services can have some issues as well. 

How do managed SFTP services operate?

Managed services handle the hardware and technical work, which takes away a huge part of the workload. You get access to an SFTP server someone else maintains, and your IT burden drops significantly.

Behind the scenes, the provider handles all server maintenance, security updates, and infrastructure concerns. This frees up your time for work that actually moves your business forward instead of babysitting servers.

Setup is usually simpler too. To get started, you'll create an account, configure some basic settings through a web interface, then add some users. Plus, most services offer some level of support when things go wrong.

Sounds great at first glance, right? And it can be, but unfortunately the traditional method of managed SFTP services brings its own sets of problems. 

What are some problems with traditionally managed SFTP services?

Most of the problems with the traditional management of SFTP services have to do with how providers operate. A lot of them take an old-school approach to business that lacks transparency and tries to lock you into contracts for short-term gains. 

Finding out what your actual costs will be can feel like trying to run up Baldwin Street, a very tiring, uphill battle. There won't be any prices on the website, and just getting an initial quote can involve weeks' worth of back and forth.  Then once you do finally get a quote, pricing models involve a hike through lists of per-user fees, per-server licenses, bandwidth charges, storage tiers, and support levels.

A lot of these things could be forgiven if the products are functional and easy to use. But most of the time, this isn't the case. Software uses old, outdated UI that looks like Clippy might jump out at any time to offer advice, and making customizations can involve complex scripts or config files. Applying updates can involve service outages so have to be done strategically and manually. 

In some cases, professional services can handle these issues for you, but they'll also come with a heavy line item or two that aren't included in the standard contract. 

Choosing between self-hosted and managed services 

If neither traditionally managed or self-hosted SFTP servers sound appealing to you, we agree. That's why we developed a new approach.

As a completely cloud-native SFTP service, Couchdrop gives you all the benefits of managed services and the power enterprise companies require without the typical drawbacks of an enterprise solution. This means you can expect the benefits of having servers managed for you but with straightforward monthly pricing, no long-term contracts, and none of the maintenance headaches.

Why is Couchdrop different from other managed services?

Couchdrop is technically a managed service, but we've thrown out all the complications and focus on being simple, transparent, and easy to do business with while creating a functional, easy-to-use product.

Couchdrop handles all the technical complexity behind the scenes. You get a secure, reliable SFTP server without needing to understand SSH configurations or security hardening. But unlike traditional managed services, we've built a modern platform that integrates seamlessly with the tools you already use. This includes the ability to automate file transfers directly to cloud storage without having to write code. 

Our pricing is transparent and straightforward, starting at just $50 a month. This and other tiers are displayed on the Pricing page with exactly what you get, with no hidden fees or sales calls required to figure out what you'll actually pay. As your needs grow, costs scale reasonably and predictably. And because pricing is month-to-month with no contract or lock-in, you can adjust your scale whenever you need to.  

All of this using a cloud-native architecture means infinite scalability. Your file transfer capabilities grow with your business without hitting technical limitations or triggering pricing tier jumps.

Try Couchdrop for simple and comprehensive managed SFTP

Try Couchdrop to get all the benefits of managed services – simplicity, reliability, zero maintenance – with none of the traditional drawbacks, and check out our simple, transparent approach to file transfers.

All you need to do is register for an account and you'll get 14 days to evaluate Couchdrop for free with no credit card or sales demo required. Sign up now to get started.