What is data engineering?

In today’s digital landscape, data transfer is more than just moving files from point A to point B — it’s about doing it securely, reliably, and in full compliance with regulations. That’s where Managed File Transfer (MFT) solutions come in.

Whether you're handling sensitive financial records, healthcare data, or large volumes of enterprise documents, choosing the right MFT tool can significantly impact your organization’s productivity and data security posture.

What is MFT and Why Use It?

Managed File Transfer (MFT) is a secure, automated approach to transferring data between systems, users, and organizations. Unlike basic file transfer methods like FTP or email, MFT solutions offer enhanced security, compliance, and control over data in motion.

At its core, MFT is built to handle critical file exchanges, whether that’s sharing sensitive data with partners, syncing information across departments, or feeding files into automated business workflows.

Key advantages of MFT over traditional file transfer methods include:

  • End-to-end encryption to protect data at rest and in transit
  • Detailed logging and audit trails for regulatory compliance
  • Automated scheduling and event-driven transfers to reduce manual work
  • Robust protocol support (e.g., SFTP, FTPS, HTTP/S, AS2)
  • User and role-based access controls for secure file sharing

Core Features to Look for in an MFT Tool

Not all MFT tools are created equal. The right solution should align with your organization’s security requirements, operational workflows, and compliance obligations. Here are the core features to evaluate when selecting an MFT tool:

  • End-to-End Encryption: Ensures that data is protected both in transit and at rest, using secure protocols like AES, TLS, and SSH.
  • Automation & Scheduling: Allows you to automate repetitive tasks such as file uploads, downloads, and processing via triggers or time-based workflows.
  • Audit Logging & Compliance: Comprehensive tracking of file movements and user activity to support audits and meet standards like HIPAA, GDPR, and SOX.
  • Protocol Support: Look for compatibility with FTP, SFTP, FTPS, HTTP/S, AS2, and others to ensure seamless communication with partners and internal systems.
  • User Access Controls: Role-based permissions and authentication options (including LDAP and Active Directory) to manage access securely.
  • Cloud and On-Premise Integration: Flexibility to connect with hybrid environments, including AWS, Azure, and private infrastructure.
  • Monitoring & Alerts: Real-time dashboards, notifications, and failure alerts to keep your team informed and responsive.

Types of MFT Tools

MFT tools come in a variety of forms to meet different business needs. Understanding the types available will help you identify which category aligns best with your infrastructure, security posture, and operational requirements.

  • Enterprise-Grade Platforms: These are full-featured solutions designed for organizations with complex file transfer needs. They typically include advanced automation, reporting, compliance controls, and integration capabilities.
  • Open-Source or Developer-Focused Tools: Ideal for technically skilled teams that prefer customizable solutions. These tools offer flexibility and cost efficiency but often require more internal maintenance and configuration.
  • Cloud-Native MFT Services: Built specifically for cloud environments, these tools support seamless integration with cloud storage and applications. They often offer elasticity, scalability, and managed infrastructure.
  • Hybrid Solutions: These tools support both on-premise and cloud deployments, making them suitable for organizations transitioning to the cloud or operating in hybrid environments.

The right type of MFT tool depends on your existing IT landscape, team resources, and long-term strategic goals.

Key Questions to Ask Before Choosing

Before committing to an MFT solution, it’s essential to evaluate your needs carefully. Here are some guiding questions to help you make an informed decision:

  • What type of data are you transferring, and how sensitive is it? This will dictate your encryption, access control, and compliance requirements.
  • Do you need automation or workflow capabilities? If your transfers are frequent or tied to other systems, automation is critical.
  • Will the tool be deployed on-premise, in the cloud, or both? Ensure the solution supports your infrastructure preferences.
  • What compliance standards do you need to meet? Look for built-in audit logging, reporting, and certification support.
  • How many users, partners, or systems will interact with the platform? Consider scalability, licensing models, and performance.
  • Does your team have the technical skillset to manage and maintain the tool? Some tools require minimal oversight, while others may need hands-on administration.
  • What is your budget and desired total cost of ownership? Don’t just look at license fees—factor in support, maintenance, and training costs.

Taking the time to answer these questions will help you shortlist tools that truly align with your business needs—now and in the future.

Try our MFT Solution

Seamlessly integrate the scalability of cloud file storage with the versatility of an SFTP server, all through a simple and intuitive interface.

Free trial