Managed file transfer (MFT) refers to a technology that provides the
secure transfer of data in an efficient and reliable manner. MFT software is marketed to companies as a more secure alternative to using insecure protocols like
FTP
The File Transfer Protocol (FTP) is a standard communication protocol used for the transfer of computer files from a server to a client on a computer network. FTP is built on a client–server model architecture using separate control and data ...
(file transfer protocol) and
HTTP
The Hypertext Transfer Protocol (HTTP) is an application layer protocol in the Internet protocol suite model for distributed, collaborative, hypermedia information systems. HTTP is the foundation of data communication for the World Wide We ...
to transfer files. By using an MFT solution, companies can avoid custom scripting and meet compliance requirements.
Background
From its inception, FTP has made moving large volumes of bulk data between any two entities — including file servers, applications, and trading partners — possible. However, FTP (and other communication protocols such as
HTTP
The Hypertext Transfer Protocol (HTTP) is an application layer protocol in the Internet protocol suite model for distributed, collaborative, hypermedia information systems. HTTP is the foundation of data communication for the World Wide We ...
and
SMTP
The Simple Mail Transfer Protocol (SMTP) is an Internet standard communication protocol for electronic mail transmission. Mail servers and other message transfer agents use SMTP to send and receive mail messages. User-level email clients ty ...
) do not, on their own, provide a way to secure or manage file transfers. Regardless of the lack of security and management capabilities, many companies have continued to transport large batches of structured and
unstructured data
Unstructured data (or unstructured information) is information that either does not have a pre-defined data model or is not organized in a pre-defined manner. Unstructured information is typically text-heavy, but may contain data such as dates, num ...
using these protocols.
This practice is changing, however. According to
Gartner Research, "Organizations of all sizes continue to invest in MFT platforms that enable secure and private transportation of files — across size and volume levels — internally and externally." MFT has also found a foothold among file transfer protocols and solutions because of its focus on facilitating the "transfer of large file sizes and volume."
MFT is often used by companies in the
retail
Retail is the sale of goods and services to consumers, in contrast to wholesaling, which is sale to business or institutional customers. A retailer purchases goods in large quantities from manufacturers, directly or through a wholesaler, and ...
,
bank
A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital markets.
Because ...
ing,
healthcare,
manufacturing
Manufacturing is the creation or production of goods with the help of equipment, labor, machines, tools, and chemical or biological processing or formulation. It is the essence of secondary sector of the economy. The term may refer to ...
,
telecommunication
Telecommunication is the transmission of information by various types of technologies over wire, radio, optical, or other electromagnetic systems. It has its origin in the desire of humans for communication over a distance greater than that fe ...
and
insurance
Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge ...
industries.
The global MFT market was estimated at US$1.3 billion in 2020 and is projected to reach US$2.4 billion by 2027.
MFT Features
While Managed File Transfer always covers the same features—reporting (e.g., notification of successful and unsuccessful file transfers),
non-repudiation Non-repudiation refers to a situation where a statement's author cannot successfully dispute its authorship or the validity of an associated contract. The term is often seen in a legal setting when the authenticity of a signature is being challenged ...
, audit trails, global visibility, automation of file transfer-related activities and processes, end-to-end security, and performance metrics/monitoring—the way it is used has a major impact on the nature of the appropriate solution. Gartner analysts agree on 4 different use cases for MFT:
#
Ad Hoc
Ad hoc is a Latin phrase meaning literally 'to this'. In English, it typically signifies a solution for a specific purpose, problem, or task rather than a generalized solution adaptable to collateral instances. (Compare with '' a priori''.)
C ...
or file distribution
# Systematic, enterprise-wide file transfer
# Extreme or large file transfer
#
B2B file transfer
Core functionality also includes the ability to encrypt files in transit and at rest.
Typical MFT functionality
MFT centers on the secure and efficient transfer of data, but most MFT software solutions offer additional features. Typically, MFT software offers reporting (e.g., notification of successful file transfers),
non-repudiation Non-repudiation refers to a situation where a statement's author cannot successfully dispute its authorship or the validity of an associated contract. The term is often seen in a legal setting when the authenticity of a signature is being challenged ...
, audit trails, global visibility, the ability to automate file transfer-related activities and processes,
end-to-end security" \n\n\nsecurity.txt is a proposed standard for websites' security information that is meant to allow security researchers to easily report security vulnerabilities. The standard prescribes a text file called \"security.txt\" in the well known locat ...
, and
performance metrics. MFT applications are available as both on-premises licensed software packages and software-as-a-service ("
SaaS
Software as a service (SaaS ) is a software licensing and delivery model in which software is licensed on a subscription basis and is centrally hosted. SaaS is also known as "on-demand software" and Web-based/Web-hosted software.
SaaS is con ...
") solutions, and can often be used in
hybrid cloud setups.
MFT applications are characterized by having all or most of the following features:
* Support multiple file transfer protocols including
PeSIT,
FTP/S,
OFTP
The Odette File Transfer Protocol (OFTP) is a protocol created in 1986, used for EDI (Electronic Data Interchange) between two communications business partners. Its name comes from the Odette Organisation (the Organization for data exchange by te ...
,
SFTP,
SCP
SCP may refer to:
Organizations Political parties
* Soviet Communist Party, the leading political party in the former Soviet Union
* Syrian Communist Party
* Sudanese Communist Party
* Scottish Christian Party
Companies
* Seattle Computer Produ ...
,
AS2
AS2 (Applicability Statement 2) is a specification on how to transport structured business-to-business data securely and reliably over the Internet. Security is achieved by using digital certificates and encryption.
Background
AS2 was created ...
and
HTTP/S.
* Securely transfer files over public and private networks using encrypted file transfer protocols.
* Securely store files using multiple
data encryption
In cryptography, encryption is the process of encoding information. This process converts the original representation of the information, known as plaintext, into an alternative form known as ciphertext. Ideally, only authorized parties can deci ...
methods.
* Automate file transfer processes between trading partners and exchanges, including detection and handling of failed file transfers.
* Authenticate users against existing user repositories such as
LDAP
The Lightweight Directory Access Protocol (LDAP ) is an open, vendor-neutral, industry standard application protocol for accessing and maintaining distributed directory information services over an Internet Protocol (IP) network. Directory servi ...
and
Active Directory
Active Directory (AD) is a directory service developed by Microsoft for Windows domain networks. It is included in most Windows Server operating systems as a set of Process (computing), processes and Windows service, services. Initially, Active D ...
.
* Integrate to existing applications using documented APIs (
application programming interfaces).
* Generate detailed reports on user and file transfer activity.
Alternative definition of characteristics
One vendor in the description of their product identifies six issues with commercial use of FTP and even
SFTP that Managed File Transfer seeks to address. The issues revolve around security weaknesses of traditional FTP in an increasing cyber threat environment and meeting increasing stringent regulatory compliance for data. While bespoke solutions may resolve some of these issues, MFT can address them with a standardized approach, along with the ability to be customized.
See also
*
Comparison of file transfer protocols
This article lists communication protocols that are designed for file transfer over a telecommunications network.
Protocols for shared file systems—such as 9P and the Network File System—are beyond the scope of this article, as are file s ...
References
{{Reflist
File Transfer Protocol
Computer files
File transfer software