Which is Better: SFTP vs. MFT?

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SFTP vs. MFT: What’s the Difference and Which Is Better?

Secure File Transfer Protocol (SFTP) and Managed File Transfer (MFT) are often compared, making MFT vs SFTP a common discussion for organizations evaluating secure file transfer technologies. SFTP is a secure File Transfer Protocol (FTP) used to encrypt data transfer during transmission between systems. MFT, on the other hand, is a software platform that can use SFTP as one of its transfer methods while adding centralized management, automation, auditing, monitoring, and policy enforcement. In many organizations, MFT builds on SFTP rather than replacing it.

For organizations with straightforward file transfer needs, SFTP is often sufficient to securely move files between trusted systems. As file transfer processes become more complex, however, MFT provides additional capabilities that improve visibility, governance, and operational efficiency.  

Beyond protecting sensitive data in transit, MFT can coordinate file-level encryption, secure storage, automated workflows, detailed audit trails, and centralized controls. These capabilities can also provide controls that support compliance efforts for requirements such as Payment Card Industry Data Security Standard (PCI DSS), Health Insurance Portability and Accountability Act (HIPAA), and General Data Protection Regulation (GDPR), making MFT a better fit for organizations that need greater oversight, scalability, and security across their file transfer activity They can support compliance efforts related to PCI DSS, HIPAA, and GDPR when implemented appropriately. 

What is SFTP?

SFTP stands for SSH File Transfer Protocol. It is a file transfer protocol that runs over SSH. Despite the similar name, SFTP is not FTP with SSH added. It is a separate protocol that runs over SSH. SFTP provides organizations with a high level of protection for its file transfers. The underlying SSH connection negotiates approved encryption algorithms such as AES based on the client and server configuration.

For authentication, SFTP users have several choices. They can test a connection with a user ID and password, an SSH key, or a combination of a password and SSH key. This is highly beneficial for organizations that need to implement stronger security measures around their file transfer process and user access.

Related Reading: GoAnywhere Glossary

Basic SFTP tools may be sufficient for straightforward transfers, but enterprise environments often need additional capabilities such as automation, centralized monitoring, alerts, auditing, and key management. 

What is Managed File Transfer?

While SFTP is a protocol, MFT is a platform.

Managed File Transfer (MFT) is a managed file transfer platform that encompasses all aspects of file transfer processes, including workflows, security, administration, and auditing, from a centralized interface.  

While SFTP provides a secure method for transferring files, MFT manages the broader workflow around those transfers. MFT platform solutions can support or coordinate encryption at rest depending on configuration and storage architecture.

Explore the features an MFT file transfer solution has to offer >

MFT platforms can use SFTP while adding centralized operational and security capabilities around the transfer. Managed file transfer is worth considering for organizations that want to simplify their file transfer processes from multiple tools or legacy scripts down to a single solution that easily supports secure integration with approved enterprise systems through built-in connectivity and a cloud connector framework. 

SFTP vs. MFT: Key Differences

SFTP and MFT both enable secure file transfers, but they serve different business needs. 
 

SFTP is usually sufficient when the need is limited to secure file movement. MFT becomes more valuable when organizations also need to automate, monitor, audit, integrate, and govern those transfers. 

When to Choose SFTP vs. MFT

The right choice depends on how much file transfer complexity your organization needs to manage. A small company with regulated, high-volume partner exchanges may need MFT, while a large organization with one simple transfer workflow may only need SFTP. 

Choose an SFTP solution if...

Your primary requirement is securely sending and receiving files through a straightforward workflow. SFTP is often a good fit for organizations exchanging files with a limited number of trading partners and whose file transfer needs do not require advanced automation, orchestration, or integration capabilities. It provides core functionality such as secure user authentication and encrypted file transfers. Teams should still consider how authentication, SSH keys, logging, alerts, and server administration will be managed, as these operational responsibilities typically remain with the organization. Many organizations deploy an FTP server or dedicated SFTP server depending on their security and operational requirements. 

Choose an MFT solution if...

If you need a way to streamline all aspects of your file transfers, a managed file transfer solution is the better choice. MFT is especially valuable when file transfers are part of larger business processes rather than isolated technical tasks. MFT supports several secure protocols such as SFTP, FTPS, HTTPS, and AS2. Alerts are sent by email, text, or system message for any file transfer failures, connection retry and auto-resume are available, and every transmission is tracked and audited to help you meet strict in-house and compliance requirements.

MFT solutions can also help with initiatives like automation, user-to-user secure file sharing, clustering for maintaining high availability and business continuity, and web and cloud integrations. The strongest reason to adopt MFT is often the need to manage file transfer operations consistently across multiple systems, teams, and partners from a centralized MFT server. 

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Can You Use SFTP and MFT Together?

Yes. In many enterprise environments, the choice is not SFTP or MFT. Instead, organizations use both.  
An MFT platform can use SFTP as the secure protocol while managing everything that happens before,  
during, and after the transfer. SFTP is one of the many secure transfer protocols that an MFT platform can manage. In this approach, SFTP provides the encrypted connection for sending and receiving files, while the MFT platform handles the surrounding processes that make file transfers more reliable, automated, and easier to manage.

For example, an organization might use an MFT platform to monitor a folder for new files, encrypt the files, send them through an SFTP connection, confirm successful delivery, generate a complete audit record, and notify the appropriate team if a transfer fails. This allows organizations to maintain the security benefits of SFTP while adding centralized visibility, monitoring, compliance reporting, and workflow automation.

GoAnywhere MFT can centralize SFTP client and server workflows alongside other secure transfer methods and automation capabilities, enabling organizations to manage secure file transfers and related business processes from a single platform, while simplifying file sharing across internal and external users. 

So, Which One is Better?

Neither option is universally better as they solve different levels of the file transfer problem. Choose SFTP when you primarily need a secure transfer protocol. Choose MFT when you need to manage and govern a broader file transfer operation.  

SFTP may be enough when the workflow is simple and the organization does not need centralized automation, reporting, or multi-protocol management. MFT can help reduce manual work, consolidate tools, and improve operational visibility, which may contribute to a stronger return on file transfer investments. 

Explore Everything Managed File Transfer Can Offer You

Learn how a secure file transfer solution can reduce human errors, save valuable time and resources, and comply with strict security standards with a personalized demo led by one of our experts.