Managing file transfers across systems can quickly become complex and risky. FTP and SFTP tools are often insufficient for modern enterprise business needs as they lack built-in automation, robust audit trails, and seamless integration with cloud services. SFTP is a basic pipe for data, forcing organizations to write complex scripts for automation. It provides limited security compliance, scalability, or monitoring.
Managed file transfer (MFT) technology is the enterprise-grade evolution of file transfer solutions. MFT allows professionals to streamline how data is transferred. It provides a secure, automated, and centralized platform for exchanging sensitive information and large files. MFT helps organizations send and receive files in the cloud and across private networks, create and control workflows, automate business processes, and centralize management from a single system. MFT also meets key compliance and auditability requirements that enterprises need.
What is MFT?
Managed file transfer solutions are centralized platforms for secure, automated file transfers. Unlike basic FTP tools, MFT uses industry-standard network protocols and encryption methods to streamline the management of company data. They support popular file transfer protocols such as AS2, HTTPS, FTPS, and SFTP. The "managed” in MFT refers to how the solution can automate and transfer data across internal systems, to external partners, and even cloud environments.
Related Reading: Get a high-level overview of MFT in this white paper >
Why Using an MFT Solution Makes Sense
MFT file transfers reduce costs, improve the quality of data transmissions, and help you comply with stringent requirements like PCI DSS and HIPAA and other industry compliance regulations. MFT software also simplifies your system-to-system, user-to-system, and user-to-user file transfers, and keeps security at the forefront of everything it does. Organizations in healthcare, finance, supply chain, and data processing rely on MFT every day.
MFT Benefits
- Enhanced Security: MFT protects sensitive information using encryption for data at rest and in transit. It uses popular, secure file transfer protocols such as AS2, HTTPS, FTPS, and SFTP.
- Compliance: MFT supports compliance regulations such as PCI DSS and HIPAA. It also provides reporting and logs for auditability.
- Automation: MFT allows enterprise businesses the ability to automate workflows and schedule transfers.
- Efficiency: MFT eliminates manual processes, macros, scripts, and reduces errors.
- Centralized Control: MFT offers users a single interface for monitoring, tracking, and managing file transfers.
So we know what MFT is and why you should use an MFT solution, but we haven’t discussed how MFT works. How do managed file transfers exchange sensitive data? How do they benefit and secure your organization?
How MFT Works
Organizations can use MFT to send files securely in several ways. These steps may differ among enterprise organizations, depending on workflows.
- This first step is known as file ingestion. The process can begin through the MFT email plugin, through the web-based client, automatically through a MFT workflow, or using a dedicated folder with secure access.
- The next step is security and processing. MFT can secure your file using AES ciphers, the Open PGP standard, or secure protocols, such as AS2, FTPS, and SFTP.
- The final step is delivery and tracking. MFT sends your file rapidly to the recipient, who then decrypts the file. An audit log is available for tracking the process.
Step One: Original File is Sent from the MFT Program or Plugin
Say you need to send a confidential document to someone in a remote office. Maybe it’s a seasonal restaurant menu for another retail location, maybe it’s an audit report for a trading partner, or maybe it’s a financial document for a homeowner. Whatever the scenario, you can send the file to a third party by using an MFT solution.
The file’s journey from you to your recipient can start in many ways. You can:
- Securely send the file through an MFT email plugin
- Send the file using MFT integrated apps, databases, and APIs
- Send it through a web client (access to the MFT solution from a browser)
- Automatically send it directly through the managed file transfer workflow
- Use event-based, time-based, or recipient-based automation triggers
- Place a file in a dedicated folder that the recipient can connect to securely for download
Whatever method you choose to send your file, MFT software ensures the data is transferred quickly and securely. Watch a quick demo video to see how.
Step Two: Your MFT Solution Encrypts the File
After you send the email, upload the file to your browser, or drop it in a monitored folder, your MFT solution receives the data and secures it in a few different ways. Managed file transfer can encrypt your files using FIPS 140-2 compliance AES ciphers or the OpenPGP standard, among others. To protect your data transfer, MFT can use secure managed file transfer protocols, such as SFTP, SCP, FTPS, AS2, and HTTPS to encrypt the data in transit. And an MFT solution like GoAnywhere MFT allows you to zip compress files before transmission. Once your data is properly protected, you can use your MFT software to schedule file transfers, translate sent and received data to popular formats, update and pull files from monitored folders, and more.
MFT GoAnywhere Benefits
- High- Grade Encryption: Users can encrypt files with AES (FIPS 140-2) and OpenPGP to protect files when data is at rest.
- In- Transit Protection: The GoAnywhere MFT solution uses secure file transfer protocols, such as SFTP, SCP, FTPS, AS2, and HTTPS, to ensure your data security in transit.
- Bonus Capabilities: GoAnywhere also offers zip file compression, validation checks, and data transformation to .CSV, .XML, and .JSON formats.
GoAnywhere also integrates Zero Trust principles directly into the software to secure data files, catch viruses and malware, and protect enterprise networks.
Step Three: Encrypted File is Delivered to the Recipient & Decrypted
When the MFT file transfer leaves your server, it's sent to whatever location you indicated for the recipient, whether that be a designated folder on another server, an email address, or so on. The recipient at the remote office can then grab the file, decrypt it, and even translate it as needed.
GoAnywhere MFT solution includes audit logs for reporting and tracking. This is a key important feature that FTP doesn’t have. Enterprises need visibility, control, and auditability for PCI DSS and HIPAA compliance.
GoAnywhere can also help guarantee the delivery of your SFTP and other transfers by automatically retrying connections, resuming interrupted file transfers, and performing integrity checks on your transfers.
GoAnywhere can help guarantee the delivery of your SFTP and other transfers by automatically retrying connections, resuming interrupted file transfers, and performing integrity checks on your transfers.
For ultimate flexibility, GoAnywhere and its inbuilt MFT client and server can be deployed to cloud, on-premises, or hybrid environments. These features provide enterprises the flexibility, control, and reporting capabilities they need in the modern world.
Common MFT Use Cases
MFT is commonly used in manufacturing, retail, and supply chain management to automatically send and receive invoices, purchase orders, and track inventory data. It is widely used in banking and finance to move, track, and manage large sets of payment data, bank statements, and financial transactions. Healthcare use cases include transferring, managing, and storing patient records and insurance claims. Industrial enterprises use MFT to send large design files and technical documents quickly and securely.
Choosing the Right MFT Solution
Organizations should look for MFT solutions that prioritize end-to-end encryption, regulatory compliance, and automation capabilities. Robust encryption for data at rest and in motion is a must have along with role-based access controls, detailed audit logs, and integration with existing systems to securely handle data. Deployment flexibility should also allow on-premises, hybrid, and cloud use with ease of integration in current workflows another must have.
See MFT in Action
Still curious about managed file transfer solutions and how they can benefit your organization? Watch our on-demand demo video to learn more.
