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File Transfer Software Buyer’s Guide: Your Complete Checklist

by Robert Dougherty updated February 21, 2024 Managed File Transfer

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Whether you’re a small business, mid–sized operation, or a large corporation, there’s a high possibility that you have to transfer files on a regular basis. Choosing the right software for file transfer can dramatically impact the efficiency and reliability of your file transfer operations. But with myriad options available in the market, it can be daunting to decide which file transfer technology best fits your needs.

Our comprehensive buyer’s guide should provide you with a comprehensive overview of the different kinds of file transfer software available, what are their unique strengths and limitations, and which ultimately will be the best one for your business. This deep dive into file transfer will help you make an informed decision.

Still debating between FTP and managed file transfer? Here are six reasons why managed file transfer is better than FTP.

File Transfer Explained

File transfer is the process of transmitting data or information from one computer to another through a network or medium. File transfer differs from file sharing solutions like email and fax, as it doesn’t just offer a way to send files, but it also provides a system for managing and controlling the transfer process. This can be especially helpful for businesses that make recurring file transfers, like invoicing customers at the end of every month, that require scheduling, automation, and bulk file distribution (read: dozens, hundreds, or even thousands of files). These differentiators are crucial for organizations because they ensure the swift, secure, and seamless transfer of files amongst employees, departments, or locations.

The Need for Control in File Transfers

Organizations increasingly need to manage and control their file transfers because the files frequently being transferred contain personally identifiable information (PII) or protected health information (PHI), making security and compliance top concerns. Regulatory compliance requirements may be mandated by governments (e.g., GDPR for the EU), industry (e.g., HIPAA for healthcare), or states (e.g., CCPA for California), and it’s not uncommon for businesses to adhere to all three, in addition to cybersecurity standards like the NIST CSF or ISO 27001.

By using a modern, high–quality file transfer software, organizations can manage and monitor the transmission of sensitive files, ensuring that the content is secured during the transfer. Not only does this protect the sensitive information within the files, but it also demonstrates compliance with data privacy laws and regulations.

Selecting the right file transfer software is therefore crucial. The software should allow for total control of the transfer process, support secure transfer protocols, and offer robust reporting capabilities. It should also be scalable to handle growing data needs, and flexible to adapt to evolving compliance requirements. In total, a keen understanding of file transfer is invaluable in today’s data–driven world. With the right software and approach, organizations can ensure the secure and efficient transfer of files, while maintaining compliance with increasingly stringent data privacy regulations.

Many file transfer platforms offer various features that give users full control over their data. This includes prioritizing transfers, controlling bandwidth utilization, ensuring data integrity, and verifying successful transfers. These capabilities mark a significant leap from basic methods like email, fax, pr file sharing platforms which lack such control and often prove insecure for transmitting proprietary or sensitive information. These solutions are also inadequate for automated and bulk file transfers, which we’ll explore further.

B2B File Transfer Solutions

There is a broad range of file transfer solutions to cater to different business needs. Here’s a brief overview of some of the most popular options and their unique strengths, weaknesses, and potential use cases.

File Transfer Protocol (FTP)

File transfer protocol (FTP) is one of the oldest and most commonly used file transfer methods. It provides a standard network protocol for transferring files between a client and a server on a network. FTP’s strength lies in its simplicity and robustness, enabling users to transfer large files efficiently.

However, one notable weakness of FTP is its lack of inherent security features. Transfers made via FTP are not encrypted, which means that data can be intercepted during transmission. To mitigate this, organizations can use FTPS or FTP Secure, which adds an extra layer of security by supporting encrypted communications.

SSH File Transfer Protocol (SFTP)

SSH File Transfer Protocol, or Secure FTP, or SFTP, operates over the Secure Shell (SSH) data stream to establish a secure connection and provide file access, transfer, and management capabilities. The key strengths of SFTP are its security and versatility. The protocol works well for transferring information across different platforms, making it ideal for organizations that use multiple operating systems.

A downside to SFTP is its complexity and the additional setup required for SSH. Furthermore, it can also be slower than FTP due to its encryption processes.

Managed File Transfer (MFT)

Managed file transfer (MFT) is a software solution that allows businesses to manage, control, and carry out secure file transfers between systems in a network. Managed file transfer’s primary strength is its robust control and automation capabilities. It provides real–time monitoring of file transfers, notifications of successful transfers or failure, and data encryption for enhanced security.

Managed file transfer also offers automated file transfer capabilities which not only increases file transfer efficiency but also eliminates the chances of human errors. It can handle any file size or type, and allows for seamless integration with existing systems and workflows, providing businesses with flexibility and scalability.

Many managed file transfer solutions also comply with a range of regulations, including HIPAA and GDPR, making it ideal for sectors like healthcare and finance.

Depending on the complexity and scale of business operations, however, a managed file transfer solution can be expensive to implement and maintain.

Secure Managed File Transfer

Secure managed file transfer not only oversees the transmission of data from one system or user to another but also ensures its security and reliability. While secure managed file transfer features and capabilities mirror those of standard managed file transfer solutions, the primary strength of secure managed file transfer solution lies in its robust security measures which include data encryption, secure protocols, and detailed audit trails.

Secure managed file transfer, however, is not without its limitations. Its implementation can be complex and may require considerable resources, especially in the case of larger organizations with more advanced needs. Additionally, while it does provide strong security measures, no system can absolutely guarantee protection against all potential threats. It is important therefore to complement Secure managed file transfer with other security technologies, measures, and practices.

HyperText Transfer Protocol / HTTP Secure (HTTP/HTTPS)

HTTP (HyperText Transfer Protocol) and HTTPS (HTTP Secure) are systems for transmitting hypertext requests and information between a web browser and a website. The strengths of HTTP/HTTPS include ease of use, wide acceptance, and ability to work with proxies and firewalls. HTTPS adds an additional layer of security by encrypting data.

The main drawback of HTTP/HTTPS is that they are not well–suited for transferring large files or high volumes of data. Moreover, unlike MFT or SFTP, HTTP/HTTPS lacks features for controlling and managing file transfers.

Simple Mail Transfer Protocol (SMTP)

Simple Mail Transfer Protocol, commonly known as SMTP, is a set of guidelines used for sending and receiving emails via the internet. It’s an application layer protocol that functions over TCP/IP, allowing communications between mail servers and clients.

SMTP is unique from other file transfer software solutions because it is specifically designed for the sending of email messages. While other software like FTP or HTTP focus on generic file transfers, SMTP hones in on the unique requirements and complexities of email transfer, such as prioritizing text and enabling mail forwarding.

One of the main strengths of SMTP is its simplicity. With minimal configuration, it effectively sends and delivers emails. Another strength is its wide usage; SMTP is globally recognized and is a standard protocol for email services. This popularity means that software and tools that leverage SMTP are generally more compatible with various systems.

On the downside, SMTP is infamous for being susceptible to spam messages. It lacks security features, and its protocol does not encrypt the messages, making them vulnerable to interception. Also, SMTP is not ideal for sending large files, as it was designed for text–based messages, limiting its versatility compared to other file transfer software.

Secure Copy Protocol (SCP)

Secure Copy Protocol (SCP) is a network protocol that allows users to securely transfer files between a local host and a remote host, or between two remote hosts, all via command line interface. Unlike other file transfer software, SCP is non–interactive, meaning that it performs its operations without interaction from the user.

One of the key strengths of SCP is its emphasis on security. Built on the Secure Shell (SSH) protocol, SCP ensures the confidentiality, integrity, and authentication of the sent data by providing encryption and authentication methods for data transfer. This added security is what differentiates SCP from other file transfer protocols like FTP, which send data in plain text.

SCP is also fairly quick, given that it uses the network’s full bandwidth when transferring data. Moreover, it has an easy to understand and command–line driven user interface, making it favorable for users familiar with such environments.

SCP, however, has a few weaknesses. It lacks features that some might find essential, such as file synchronization and remote file search. Additionally, SCP does not support the resume of interrupted transfers. This can be problematic when dealing with larger files.

Applicability Statement 2 (AS2)

Applicability Statement 2 (AS2) is a standard used in Electronic Data Interchange (EDI) to transmit and receive data securely over the Internet. It ensures that the transmitted data is protected during transfer, by applying encryption, digital signatures, and verification at each end.

AS2 serves as an alternative to the traditional FTP or email–based data transmission for businesses requiring more secure and efficient data exchanges. Unlike FTP which sends data in plaintext, AS2 encrypts data to prevent interception during transmission. It also allows the receiver to send a receipt back to the sender, confirming that the transferred data was successfully decrypted and verifiable. This process, known as 'nonrepudiation,' is a unique feature of AS2, ensuring a higher level of data integrity and security.

One of the key strengths of AS2 is its ability to handle any type of file or data format. It can transmit EDI, XML, CSV, text files, and more. AS2 also supports synchronous and asynchronous Message Disposition Notification (MDN), allowing users to choose which suits their operations best.

AS2, however, also has its weaknesses. The complexity of setting up an AS2 connection may require technical expertise, potentially leading to additional costs for businesses. Interoperability issues can arise when different AS2 software fails to communicate properly.

Applicability Statement 3 (AS3)

Applicability Statement 3 (AS3) is a communications protocol that’s widely used in the business world for secure file transfers. This standard, developed by Internet Engineering Task Force (IETF), is designed to move digital data files over the internet in a secure, reliable and efficient manner. Unlike other file transfer protocols, AS3 is based on the Simple Object Access Protocol (SOAP) which makes it compatible with web services.

AS3 is an upgrade from its predecessor, AS2, because it includes extra features like the potential to utilize web services. This makes AS3 a more flexible and scalable option. While AS2 uses HTTP/S for message transport, AS3 leverages FTP/S or SFTP. This allows it to handle larger files and reduce the risk of timeout errors that are common in HTTP/S.

One of the key strengths of AS3 is its ability to apply digital signatures and encryption to the data packets. This ensures that the data is secure while in transit and can be authenticated upon receipt. Additionally, AS3 supports receipt confirmation, which provides a clear record of when a file is received and opened. This can be invaluable for businesses that need to track sensitive information.

There are, however, also some weaknesses associated with AS3. It requires a higher level of expertise to manage and configure compared to some other file transfer protocols. And despite its improved file handling capabilities, the protocol may still struggle with extremely large files or high volumes of data. Furthermore, while many systems support AS3, it’s not universally compatible like some other more common protocols such as FTP.

Trivial File Transfer Protocol (TFTP)

Trivial File Transfer Protocol (TFTP) is an internet software utility designed to transfer files over networks. This protocol is primarily utilized to read and write files/mail to remote servers. It is based on User Datagram Protocol (UDP) and its functioning varies from other file transfer software solutions like FTP (File Transfer Protocol) and HTTP (Hyper Text Transfer Protocol).

TFTP is a simple protocol for transferring files — hence the term ‘trivial’. Unlike other protocols, it does not provide directory browsing, user authentication, or any other additional features. Instead, it focuses solely on swiftly and reliably moving files between devices. It is commonly used in devices where the software is updated over the network, like routers or IP phones.

In comparing TFTP with other file transfer software, a significant difference lies in the protocol’s simplicity and lightweight nature. It requires less memory and less processor power, making it an ideal choice for seamless file transfer in embedded systems or devices with minimal resources. The strengths of TFTP are its speed, efficiency, and reliability in transferring files between devices. It is also free to use and highly compatible with various network devices.

On the downside, TFTP lacks security measures since it does not offer encryption for the files being transferred. It also lacks a built–in mechanism for user authentication and directory listing, limiting its versatility compared to other file transfer software.

Determining Which File Transfer Solution is Best

Choosing the right file transfer solution depends on several key factors. Consider the size of files you typically transfer, the volume of transactions, security requirements, and the need for control and manageability.

For instance, if your organization regularly transfers large files and needs advanced control features, a solution like MFT may be most suitable. On the other hand, for smaller file transfers with a focus on ease of use and cost–effectiveness, HTTP/HTTPS might be more fitting.

Choosing the right file transfer solution lies in understanding your deployment needs. On–premises solutions provide organizations with more control over their data, ensuring heightened security in file transfers. However, these on–premises systems can be costly and may require advanced technical expertise to manage.

On the other hand, cloud–based file transfer solutions offer scalability and flexibility. They allow for rapid expansion without heavy upfront investment. While this model can aid in cost management, it may present potential security concerns as data is stored off–site. Awareness of these pros and cons is crucial to make an informed decision.

Remember, no solution is inherently better than the other; it all depends on your specific needs and requirements based on your use cases, security and privacy needs, and regulatory compliance requirements. It may also be beneficial to consult with a technology partner like and Managed Security Service Provider (MSSP) or another trusted advisor like an attorney who can provide insights based on your unique situation.

File Transfer Buyers Checklist

Navigating the world of file transfer software can be complex. The technology plays a pivotal role in enabling businesses to send files to individuals, machines, and various locations securely, efficiently, and in compliance with regulations. The choice of software can also determine abilities such as bulk transfers and automation.

Finding the most fitting file transfer solution, however, hinges on an organization’s unique needs and requirements. This guide presents a comprehensive checklist to assist you in selecting, implementing, and successfully rolling out a file service solution that aligns with your business operations.

Identify your specific use cases: It is crucial to properly define your specific file transfer requirements. First, identify the type of files you need transferred as the file type could potentially influence the kind of transfer method you should use. It’s also important to consider the size of these files. Large files may require a more robust transfer system.

Another factor to consider is the frequency of the transfers. Will this be a one–time transfer or is it something that will be done periodically? If the latter, you’ll need to set up a more permanent and possibly automated system to handle the reoccurring transfers.

Finally, you also need to determine the destinations of these files. Are these files going to be sent to different locations, perhaps across different time zones? Or will these files be transferred within the same network? These factors could significantly influence the types of file transfer protocols or software that would best suit your needs.
Evaluate on–premise vs. cloud deployment: Depending on the unique needs and specifications of your organization, you may find that you need to make a decision between opting for on–premise software and a cloud–based solution. Your deployment choice will have a significant effect on the financial commitments your organization will need to make, as costs differ greatly between these two alternatives.

Furthermore, the decision will also influence the level of control you have over your valuable data. Depending on which option you select, the storage, access, and management of your data will vary. Lastly, the choice between an on–premise and a cloud–based solution will also have an impact on the technical resources required by your organization. This includes the hardware, software, and human resources required to maintain the operation and security of your chosen solution.
Assess security and compliance needs: Depending on the kind of data you need to transfer, various security features need to be taken into account in order to ensure a safe and secure data transfer process.
Encryption, for example, transforms your data into a code to prevent unauthorized access. User authentication, including identity access management (IAM) and multi-factor authentication (MFA), requires users to provide credentials to verify their identity before granting access which can further enhance security. File transfer tracking, enabled by audit logs, detect any anomalies or unauthorized activity. These and other crucial security features should be strongly considered if data security or data privacy is important.

Furthermore, it’s essential that the file transfer software adheres with relevant data privacy standards and regulations. These standards can include GDPR, HIPAA, and PCI–DSS, to name just a few. It’s always important to check if such regulations are applicable to your business and take steps to ensure compliance with them.
Determine your budget: You’ll need to factor in the initial purchase price or subscription fees that file transfer software providers charge. This can either be a one–time cost or a recurring expense that is essential to retain access to the software. You also need to consider the cost to deploy the software. This can vary greatly depending on the specific type of software and the necessary hardware requirements. Set up costs also include the time invested and resources used to install and implement the software within your existing infrastructure. This could potentially involve training costs for staff members to become proficient in the new system. Maintenance costs are another crucial aspect to take into account.

The cost of ongoing maintenance, troubleshooting, and technical support required to keep the software running smoothly can add significantly to the total cost. Software upgrades and updates are also often required to keep the software compatible with other evolving technologies or to enhance its features. Therefore, the cost of these upgrades or updates should be included in the overall cost calculation.

Lastly, there might also be additional costs involved for adding more features or users to the software. Many software providers charge extra fees for additional users or for accessing premium features. This can also substantially add to the total cost of owning and operating the software.
Research potential solutions: Identify solutions that provide the specific features and functionalities required for your business. It is important to keep in mind your budget and deployment requirements.
Take the time to read online reviews and ratings. These reviews can give you an idea of what other users’ experiences have been like and can help highlight any potential issues or benefits you might not have considered.

Lastly, ask for recommendations from colleagues, other businesses in your industry, or trusted advisors. They may have experience with similar solutions and can provide valuable insights, letting you make a more informed decision.
Ask for demos or free trials: A demo or free trial enables you to conduct a thorough evaluation of the usability and performance of the software prior to making a purchase decision. Observe the user interface and determine if it is intuitive and easy to navigate. The reliability of the software is also paramount; check if it performs consistently without crashing or causing errors.
Also, look for accessibility to customer service representatives, availability of resources like tutorials or FAQs, and the presence of a user community or forum for peer support. These factors together can give you a comprehensive idea of the software’s worth and help decide if it’s the right choice for you.
Consider the support and maintenance: A quality customer support team will be able to assist you with the initial set–up process to ensure it goes smoothly. They should also be available for continued support, such as regular maintenance checks, which will help to prolong the life and efficiency of your system. It’s essential, too, that they can provide immediate assistance for any urgent issues that arise. This team effectively will stand as your technical backup, ensuring that any potential issues are resolved quickly to prevent any impact on your operations.
Plan for implementation: A seamless implementation is the goal, so make sure the software fits perfectly in your operating environment. Configure the settings correctly to ensure optimal functionality. Take advantage of any integrations with your existing systems to achieve consistent data flow and effective communication between all applications. Finally, you may need to migrate data from old systems to the new software. This is often a complex process that involves moving large amounts of data and setting up necessary data maps to match fields between the two systems.
Train your staff: Make sure your team knows how to use the software effectively. This might involve training sessions, creating user manuals, or arranging for training from the software provider.
Additionally, require and provide in–depth user manuals so users have a step–by–step explanation of how to use the software. It might also be worthwhile to engage the software providers professional services team to provide specialized training on how to best utilize their product, which could prove extremely beneficial for your team.
Monitor and evaluate the software: Regularly assess the file transfer software’s performance in terms of efficiency, productivity, and usage. This evaluation should be done consistently and at scheduled periods, be it weekly, monthly, or quarterly to understand its impact fully.

It’s important, too, to evaluate whether the file transfer software is delivering according to the needs of the organization. This could be measured in various ways such as increased revenue, improved customer satisfaction, or enhanced employee productivity. Finally, monitor whether changes or modifications to the solution need to be made in order to adapt to changing business needs. This may include adding users or acquiring additional features that will help enhance the solution’s effectiveness.

Kiteworks Helps Organizations Modernize and Protect Their File Transfers With Secure Managed File Transfer

File transfer solutions form an integral part of any organization’s operations, facilitating efficient and secure data exchange. This guide has examined some of the key file transfer solutions available, such as FTP, SFTP, MFT, and HTTP/HTTPS, each with its strengths and weaknesses.

Deciding on the right solution depends on a multitude of factors, including file size, security requirements, need for control features, and cost considerations. Ultimately, the best solution should align with your business’ unique needs and demands. By understanding the different file transfer technologies and how they operate, you can make an informed decision that enhances your operational efficiency and data security.

The Kiteworks Private Content Network, a FIPS 140-2 Level validated secure file sharing and file transfer platform, consolidates email, file sharing, web forms, SFTP and managed file transfer, so organizations control, protect, and track every file as it enters and exits the organization.

Kiteworks secure managed file transfer provides robust automation, reliable, scalable operations management, and simple, code-free forms and visual editing. It is designed with a focus on security, visibility, and compliance. In fact, Kiteworks handles all the logging, governance, and security requirements with centralized policy administration while a hardened virtual appliance protects data and metadata from malicious insiders and advanced persistent threats. As a result, businesses can transfer files securely while maintaining compliance with relevant regulations

Kiteworks secure managed file transfer supports flexible flows to transfer files between various types of data sources and destinations over a variety of protocols. In addition, the solution provides an array of authoring and management functions, including an Operations Web Console, drag-and-drop flow authoring, declarative custom operators, and the ability to run on schedule, event, file detection, or manually.

Finally, the Kiteworks Secure Managed File Transfer Client provides access to commonly-used repositories such as Kiteworks folders, SFTP Servers, FTPS, CIFS File Shares, OneDrive for Business, SharePoint Online, Box, Dropbox, and others.

In total, Kiteworks secure managed file transfer provides complete visibility, compliance, and control over IP, PII, PHI, and other sensitive content, utilizing state-of-the-art encryption, built-in audit trails, compliance reporting, and role-based policies.

To learn more about Kiteworks Secure Managed File Transfer and its security, compliance, and automation capabilities, schedule a custom demo today.

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