What is Managed File Transfer?

Whether it’s simple email attachments or sharing entire projects with partners and suppliers, every business needs to send files. Many organizations transfer everything manually, time that adds up that could be spent doing something more productive, not to mention the chance for errors or simply forgetting to pass along a critical file. 

A solution for both of these issues and more is Managed File Transfer (MFT). Like the name suggests, file transfers are “managed” by an intermediary that can add security, transform file metadata, and automate file transfers. Organizations that move from a manual process to an MFT solution spend less time on transferring files, make fewer errors, and have files ready to action in the next stage. But what exactly is managed file transfer, and is it the right option for you? 

What exactly is Managed File Transfer?

Managed File Transfer is a type of software that provides a centralized platform for all of your file transfers. Think of it as a hub or a station that all files have to stop at before going to the final destination. All files pass through and then get routed to the appropriate place, possibly with some changes at the same time like making a copy, updating the name, or adding encryption. 

So why bother stopping at this hub? Why not go straight to the destination instead? One of the main obstacles is protocol support. MFT software supports multiple protocols like SFTP, FTP, SCP, and AS2. Suppose that you have a piece of industry-specialized software that generates important reports for an external analyst, who’s working in Google Workspace. If the software only supports FTP connections, how do you get that information to them? Since MFT platforms use multiple protocols, this isn’t an issue–even when a direct connection would normally be impossible–because the hub makes sure files can transfer successfully, and can even schedule the transfer so no manual work is needed. 

Another main benefit is the increase in security. Using the example above, an FTP connection is risky to use due to lack of encryption. When everything is kept local, the risk is minimal, but once exposed to external networks that risk skyrockets. MFT can often add layers of security both for these transfers and when storing files (if it needs to store them at all), and will keep detailed logs of actions and events. 

When transferring numerous files between different platforms, managed file transfer is the new standard due to the benefits and safeguards it offers compared to standard file transfers.

What makes MFT different from standard file transfers?

Standard file transfers are straightforward; you move a file from one location to another and that’s it. For some organizations that rarely need to move data, this method works fine. But when doing dozens, hundreds, or thousands of transfers, it’s important to keep track of files, make sure they’re protected during the transfer process, and have a way to know that they actually arrived. 

MFT does all of this for you, combining advanced security protocols and detailed audit trails into a single system. Many also include no-code automations, so you can set up the framework once and forget about it, knowing the files are always where they need to be and ready to act on. And if something goes wrong? The platform will let you know with alerting and notifications so nothing gets lost in the web. 

You miss out on these benefits with standard file transfers. If something goes wrong, you might not know at all until an important file goes missing and nobody knows why, or where it went; or if it can be recovered. And if the normal way of transferring files was using FTP, it could be that the file was intercepted, putting you in breach of compliance. When important data is on the line, organizations need MFT.

Why do organizations need MFT?

What makes MFT stand out from other file transfer options is the ease of connecting with external parties. Vendors, suppliers, partners, and organizations deal with many of these parties they need to share data with, but aren’t part of the internal team. 

These groups need access to specific files, but you don’t want to make them members of your team. For instance, you could add an external supplier as a user in Google Workspace and isolate their access to a single folder, but doing that is costly and requires logging into your Workspace with the associated organization email every time they want to access files. 

Instead, MFT can send those files somewhere that’s already accessible to them. That could be their own SFTP server or another shared resource. MFT can monitor specific folders and send files as soon as they arrive without waiting. This means files are available immediately, already transferred to the final destination as soon as possible, without ever having to share logins to your organization accounts.  
Using a Managed File Transfer enhances security, improves operational efficiency, helps organizations meet compliance, and scales with business growth. 

How does MFT enhance security?

MFT adds an extra layer of security to file transfers, which helps safeguard files in a few ways. One is by having files encrypted at all stages of the transfer process, both in transit and at rest (some solutions like Couchdrop don’t store your files at rest at all, adding even more security). This is a huge benefit when pulling from a system that only supports FTP or less secure protocols, such as forcing FTPS (FTP over SSL) connections. 

Another way that MFT enhances security is by being the one place to manage all things related to transferring files. A good MFT system will include user management and access controls, which can be quickly updated as needs change and new users need to be included or older ones removed. Bringing all this information and control in one place gives an overarching view and helps you quickly find security gaps to plug without having to delve deeply into dozens of separate systems.

How can MFT improve operational efficiency? 

Probably the biggest way that Managed File Transfer helps improve operational efficiency is by automating file transfers. 

Imagine that you have a simple process where software creates reports and you need to distribute those reports to three different external companies every day and rename them to fit your naming conventions, a process that takes 15 minutes every day. Sure, it might only take a quarter of an hour to manually do the process, but that time adds up fast, resulting in over 60 hours a week–if everything goes right every time. 

Start scaling that process to higher amounts and you can see how MFT can be a massive time saver. Automating that process can completely cut out the manual actions, making it faster and more accurate and opening up team members for more important work. File transfers can simply become something that happens as part of the background, almost like magic.

How does MFT help with compliance? 

As more and more file transfers are being done electronically, compliance standards have emerged to help make sure that files with sensitive information aren’t exposed to people who shouldn’t have access to them. Standards like GDPR and PCI have specific requirements that must be met to stop organizations from being in breach. And more nebulous standards like HIPAA have strict conditions that must be met that aren’t as straightforward as ticking off checkboxes. 

MFT platforms help more easily meet these standards in several ways. One is security, as mentioned above. Another is by providing increased visibility and detailed audit logs. Every transfer and every action a user takes is logged and recorded so it’s simple to find out where files are, who accessed them, and when events occurred. This is especially useful if the organization is audited for compliance–everything will be available directly from the platform so there’s no question what happened at any point. 

How does MFT scale with business growth? 

When you have few (or zero) file transfers to external parties, an MFT platform might seem like overkill. But as organizations scale, the benefits become more and more clear. You’ll need to exchange files more often and with more parties, something that will eventually become a timesink for something that has to be done. 

Because managed file transfer platforms work as a hub for all your file transfers, scaling up or down is simple. You can change specific actions in an automation, add or remove users, or add new endpoints with ease in a few minutes. At a large scale, thousands or hundreds of thousands of files can be transferred every day without any manual input, all with peace of mind that security is covered. 

Transform your file transfer strategy with Couchdrop

While MFT platforms offer several advantages, there are a few drawbacks that stop organizations from adopting them. Two that are often cited are cost and complexity. Fortunately, Couchdrop takes a different approach where neither of these are an issue. 

Since Couchdrop is entirely in the cloud, there’s no infrastructure setup or management. This also allowed us to create a way to transfer files without ever storing any of your data at any point–Couchdrop simply works as an intermediary to shift files between the storage platforms you already use like SharePoint, Google Workspace, and Dropbox. 

Couchdrop is also a significantly better value than typical MFT platforms. You’ll get full access with 5 users for $119.99/month with no lock-in and no licensing or other hidden costs. And Couchdrop is simple enough to set up in minutes. 

But you don’t have to take our word on it. Try Couchdrop for yourself with a 14-day free trial, no credit card, demo, or onboarding required. Simply sign up and go. Register now to get started.