What is Managed File Transfer?
Managed file transfer (MFT) is the process of securely and efficiently transferring large or sensitive files between systems and users within an enterprise setting. File transfers are necessary for tasks such as processing orders, submitting forms, and other digital paperwork common in business-to-business transactions. A managed file transfer solution (MFTS) enables file transfers to occur within and between organizations in a controlled, secure, and centralized manner. It allows you to automate complex business processes that involve file exchange, while reducing communication overheads.
What are the use cases of managed file transfer?
MFT services can be an effective solution for managing large or sensitive file transfers at scale.
Data ingestion
Many use cases for an MFT software depend on it first ingesting data into your organization's data lake before it can be used by integrated systems or securely shared with partners. For example, MFTS is used to:
- Ingest unstructured data, such as JSON, XML, or logs from nonrelational databases for further querying and analysis.
- Move large datasets and unstructured data for batch processing.
- Load structured data from SQL-based systems for reporting, dashboards, and transactional workloads.
- Transfer training data to generative AI models.
- Collect and transfer files and system logs from servers, apps, or devices to analytics tools.
Regulated document exchange
An MFTS helps an organization to securely share documents with authorized internal teams or external partners while maintaining a complete audit trail for regulatory compliance. This level of control enables businesses to meet the requirements set by regulations in various sectors, including healthcare (HIPAA), pharmaceuticals and manufacturing (GDPR), and financial services (SOX).
Content distribution
Unlike traditional file-sharing tools, an MFTS can offer reliable content distribution at scale to customers, remote teams, and partners with minimal risk of data loss or unauthorized access. For example, this includes materials such as software updates, video media, or marketing data.
ERP integration
An MFTS can help you keep your Enterprise Resource Planning (ERP) system connected with suppliers, logistics providers, and internal departments. It can help automate the processing of files such as purchase orders, shipment notifications, and inventory reports.
Device integration
MFT software facilitates the transfer of telemetry and other device-generated data from IoT edge devices and embedded systems to central systems for monitoring, analysis, and action. This capability is crucial for industries such as manufacturing, logistics, and healthcare, which value real-time insights. It is also useful when you want to move data from remote or low-connectivity locations more reliably.
What are the benefits of managed file transfers?
An MFTS enables you to conduct more reliable and cost-effective file transfer processes at scale.
Increased data security
An MFTS helps prevent data breaches and failed transfers, which can harm your organization both financially and reputationally. Real-time monitoring, end-to-end encryption, and automated transfer validation policies all help ensure sensitive data remains secure and intact throughout the file transfer process.
Increased efficiency
An MFTS automates repetitive, manual file transfer tasks. For example, in shipping and logistics, an MFTS can automate the daily exchange of invoices and shipment notifications between warehouse systems, suppliers, and their distribution centers. This ensures real-time updates on inventory levels and order status, helping you manage stock more efficiently. This can also lower IT and operational expenses.
Auditability and regulatory compliance
Industries such as finance, healthcare, and manufacturing must all adhere to regulations that require strict controls over the handling of sensitive data. Major regulations include:
- The Payment Card Industry Data Security Standard (PCI DSS)
- Health Insurance Portability and Accountability Act (HIPAA)
- Sarbanes-Oxley Act (SOX)
- General Data Protection Regulation (GDPR).
An MFTS helps organizations meet the standards set by these regulations thanks to its strong data security features. They help ensure that every file transfer is tracked, secured, and verified.
Multi-platform integration
Managed file transfer centralizes and automates the capabilities of established, secure file transfer protocols, integrating smoothly with most enterprise IT environments. An MFTS can connect to any collaboration tool, such as an ERP, CRM, or cloud platform, that your organization uses.
How does a managed file transfer solution work?
A managed file transfer solution provides a centralized platform for managing data movement at scale between client applications and your central systems. An MFTS typically supports one or more protocols, end-to-end encryption, various authentication options, and audit logging, all of which help provide better visibility into and governance over file transfers.
In contrast, legacy file transfer methods often lacked one or more of these capabilities and were decentralized, requiring each user to manage their connection individually. That could lead to operational delays and even regulatory compliance risks in regulated industries.
Features
Key features include:
Workflow automation
Scheduled transfers, triggered actions based on system events, automated pre- and post-processing, and integrations with other business applications.
Centralized management
Real-time visibility into file transfer activity from all users and software clients.
Security controls
Encryption, user authentication, and detailed logging for compliance and audits
Deployment flexibility
Support for cloud-native and hybrid cloud deployment to fit use cases across many regulated industries, such as financial services, healthcare, and pharmaceuticals.
File transfer protocols
Many of the most widely used protocols are available through an MFTS.
File Transfer Protocol
FTP is one of the earliest protocols for conducting network file transfers. Although it remains fast and widely supported, it does not encrypt data during transfers. That makes FTP best suited for sharing non-sensitive data.
File Transfer Protocol Secure
FTPS adds TLS/SSL encryption to the original FTP protocol, thereby securing both user credentials and the data being transferred. You will often use FTPS when compatibility with legacy systems is required, but strong security is still necessary.
Secure File Transfer Protocol
SFTP uses the SSH (Secure Shell) protocol to encrypt both file transfer commands and the data being sent. While similarly named, it is not compatible with FTPS. SFTP is a suitable choice when you need strong security, ensure compatibility with network security infrastructure, and manage large files effectively.
Applicability Statement 2
AS2 is a protocol used for secure and authenticated exchange of business data, particularly Electronic Data Interchange (EDI) documents. It utilizes the HTTPS web protocol for encryption and digital signatures to provide MDN (Message Disposition Notifications) proof of delivery. AS2 is widely used in retail and healthcare for compliant file transfers among business partners.
Managed file transfer servers
To deploy an MFTS, you first create a server for your workflow, for example, for data extraction. You want to be able to extract financial transaction data from a CSV submitted by a user in your organization. You can typically provision a server through the web interface of your MFTS to support the protocols best-suited to this workflow.
Managed file transfer clients
End users connect to your MFTS server using standalone, secure file transfer desktop applications, web applications, or plugins. In our example, let's say a financial analyst within your organization has a customer transaction report that they need to record for regulatory compliance purposes. They can send the file to the server through a client application. Internally, the application sends the file using SFTP or AS2 protocol.
What are the challenges of using a managed file transfer solution?
There are several key considerations to keep in mind when selecting an MFT platform for file transfers and processing within your organization.
Increasing security demands and sophisticated threats
When transitioning to a centralized platform for all enterprise file transfers, it is crucial to be particularly vigilant about potential threats, such as ransomware, that could target your organization. Your team will need a solid understanding of the data security capabilities of the MFTS you use, including authentication options, monitoring transfer activities, and available reporting capabilities.
Exchanging data in an ever-connected world
Using a single platform means you need to keep track of all the exchanges made between internal teams, customers, and business partners in one place. You need to ensure the MFTS you choose can accommodate all secure file transfer protocols and workflows and prevent failed transfers. You will also need to stay up-to-date with the latest updates in all associated regulatory standards.
Leveraging diverse datasets
Businesses often work with multiple data sources and formats. Both internal and external. Obtaining a comprehensive and accurate view of all file transfers, particularly across hybrid or cloud environments, can be a challenging task. You should identify an MFTS that helps ensure consistency, accuracy, and accessibility across all transfer activities.
Lowering costs and increasing scalability
As data volumes increase, so do the costs associated with managing file transfer activities. While using your MFTS, stay vigilant for ways to reduce operational overhead while scaling securely to meet demand. Identify areas where you can automate workflows and minimize manual intervention in data processing to enhance efficiency.
How can AWS support your managed file transfer requirements?
AWS Transfer Family is a fully managed service that provides secure file transfer into and out of AWS storage services. It offers fully managed support for transferring files over SFTP, AS2, FTPS, FTP, and web browsers directly into and out of cloud object storage (Amazon S3) or cloud file storage (Amazon Elastic File System).
You can seamlessly migrate, automate, and monitor your file transfer workflows while maintaining existing client-side configurations for authentication, access, and firewalls.
Nothing changes for your customers, partners, and internal teams, or their applications. However, you can:
- Scale to support thousands of concurrent users with access controls.
- Trigger automated, event-driven tasks with a fully-managed, low-code service.
- Migrate existing file transfer workflows to the AWS cloud without impacting your existing connections and integrations.
You can also simplify and automate post-transfer file processing and downstream file processing by leveraging integrated services, such as AWS B2B Data Interchange and AWS Step Functions.
Get started with managed file transfer on AWS by creating a free account today.