Managed File Transfer

Managed file transfer ("MFT") refers to a software or a service that manages the secure transfer of data from one computer to another through a network (e.g., the Internet). MFT software is marketed to corporate enterprises as an alternative to using ad-hoc file transfer solutions, such as FTP, HTTP and others.

Typically, MFT offers a higher level of security and control than FTP. Features include reporting (e.g., notification of successful file transfers), non-repudiation, auditability, global visibility, automation of file transfer-related activities and processes, end-to-end security, and performance metrics/monitoring.

MFT applications are available as both on-premises licensed software packages and software-as-a-service ("SaaS"). Some are specially designed for enterprise use while others are for sale to individual consumers. A few enterprise-focused SaaS MFT providers also manage the additions of new trading partners, which can free up a lot of IT (Information Technology) resources.

MFT applications are characterized by having all or most of the following features:

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 and SMTP) do not, on their own, provide a way to secure or manage the payload or the transmission. Yet, regardless of the lack of security and management capabilities, many companies have continued to transport large batches of structured and unstructured data using these protocols.

This practice is changing, however. According to Gartner Research, "Organizations often use MFT solutions to replace FTP. This is due to increased focus on compliance, privacy regulations and corporate transparency — which demand increased auditing, management, security and process."

While Managed File Transfer always recovers the same features—reporting (e.g., notification of successful file transfers), non-repudiation, auditability, 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. Today analysts and experts agree on 6 different usage patterns for MFT:

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