This blog was inspired by a conversation I had at a recent data security conference.
“bTrade develops and licenses a suite of managed file transfer software solutions that can be operated on-premises or in the cloud.” That was my answer to a question posed by an attendee (who I’ll call “Judy”) about the type of business in which bTrade is engaged.
Judy asked a follow-up question: “What is managed file transfer?” I explained that “managed file transfer” refers to software solutions that facilitate the secure and efficient transfer of files between systems or users. I told her to think of a managed file transfer solution as your data’s best guardian angel; it manages not just the movement of files but also their security, integrity, and compliance throughout the transfer process.
I also offered real-world examples based on our customer interactions. For example, I recounted how the U.S. Department of Education has deployed bTrade’s managed file transfer solutions on-premises to power its “Student Aid Internet Gateway,” through which all Free Applications for Federal Student Aid (FAFSA) are processed. In the U.S., the FAFSA process determines student eligibility for financial aid for college or graduate school.
Judy then asked several questions to understand how a managed file transfer solution compares to other types of software. Soon after this conversation ended, I realized that our readers might find this information useful, so I will share here the rest of my conversation with Judy.
“File Sharing” Applications ≠ a Managed File Transfer Solution
Below is a thumbnail sketch of how I compared a file sharing application with a managed file transfer solution.
Purpose:
File sharing applications are designed for ad-hoc, casual file exchanges between users. It allows quick sharing of documents, images, and other files over the internet or within a network.
A managed file transfer solution is focused on secure, automated, and reliable data exchanges in a business or enterprise context. Managed file transfer solutions manage the end-to-end transfer process, ensuring data compliance, encryption, and auditability, especially in industries with strict regulatory requirements (e.g., government, healthcare, finance).
Security:
While some file sharing applications offer basic encryption (i.e., might not comply with industry-specific regulations like HIPAA, GDPR, etc.), they aren't typically designed with enterprise-level security in mind. Security can be user-driven, such as sharing permissions or password protection.
Managed file transfer solutions offer robust security features, including strong end-to-end encryption, secure protocols (AFTP, SFTP, AS2, HTTPS, and FTTPS), detailed authentication and authorization controls, data integrity checks, audit trails, role-based access control, and compliance with various regulatory standards (GDPR, HIPAA, and PCI DSS). It’s built for organizations that need high levels of security and accountability.
Control and Management:
File sharing applications offer very little control over who accesses the files once shared. Typically, once a link is sent, the sender has limited ability to manage or audit who downloads or views the file. Transfers are often initiated manually by users and are not typically part of a larger, automated business process.
A managed file transfer solution has a centralized management console for monitoring transfers, user access, and permissions; detailed audit logs for all file activities; and ability to retract or control files even after they've been sent. It includes automation features that allow for scheduled or triggered transfers, integration with other systems (like ERP, CRM), and the ability to set workflows for moving data between systems or organizations without manual intervention.
Scalability:
File sharing applications are best for small-scale or individual file transfers and not optimized for handling large volumes of data or complex transfer requirements, whereas a managed file transfer solution is built to handle large file sizes, bulk transfers, multiple concurrent connections, and can be integrated into larger IT ecosystems or automated workflows.
Governance and Compliance:
File sharing applications are generally not designed to meet stringent governance or compliance requirements. But a managed file transfer solution is built with governance in mind. It provides detailed logging, audit trails, and reporting to meet compliance requirements for industries with strict regulations on data transfer and handling.
Comparison Analogies:
I would compare file sharing software to sending a postcard; it's simple, gets the job done for everyday use, but offers little in terms of privacy or control once sent. Whereas a managed file transfer solution is more like using an armored courier service; it's secure, trackable, and managed from start to finish, suitable for sensitive or critical business communications.
Document Management Software ≠ a Managed File Transfer Solution
Below is a thumbnail sketch of how I compared document management software with a managed file transfer solution.
Purpose:
Document management software is designed to store, organize, retrieve, and manage documents within an organization. It focuses on version control, document indexing, collaboration, and workflow management.
Managed file transfer solutions are built for securely transferring files between systems, users, or organizations, with a focus on security, automation, and compliance. Its primary role is to ensure data is moved reliably and securely, not stored or managed long-term.
File Storage and Organization:
Document management software functions as a repository for documents and files, allowing users to organize, search, tag, and retrieve documents. It typically offers collaboration tools, such as check-in/check-out, version control, and document approval workflows.
Managed file transfer solutions do not store files long-term. Instead, they move files from one location to another (e.g., between servers, systems, or external partners). Once the transfer is complete, files are typically removed from the managed file transfer system.
Security and Compliance:
Document management software provides features like access controls, encryption, and audit trails to secure documents and maintain compliance with regulations related to document retention (e.g., HIPAA, GDPR). However, security is more about protecting documents within the system than securing file transfers.
Managed file transfer solutions prioritize secure transmission of files and ensure that files are encrypted in-transit and at-rest. They offer detailed logging, audit trails, and compliance features specific to data transfer standards (like PCI DSS, HIPAA, and GDPR).
Automation and Workflow:
Document management software focuses on document lifecycle management, such as automating document creation, approval workflows, and retention schedules. The goal is to streamline the way documents are managed within an organization.
A managed file transfer solution automates the transfer of files between systems or parties, often on a scheduled basis or triggered by specific events (e.g., when a file is uploaded). It's designed to handle large files and high volumes of data transfers reliably, often integrating with other systems within an organization.
Collaboration:
Document management software centralizes collaboration on documents, offering tools for multiple users to work on, edit, and review documents. Version control ensures that changes are tracked, and users can work on the latest versions of documents.
A managed file transfer solution is not designed for collaboration. It provides a comprehensive solution for transferring files, often large ones, securely and efficiently, but it doesn’t offer features for multiple users to edit or review those files.
File Handling:
Document management software focuses on managing documents (e.g., PDFs, Word docs, spreadsheets) and associated metadata (such as author, creation date, and tags). It’s optimized for structured and unstructured document storage.
A managed file transfer solution handles any file type, including large datasets or binaries, with the aim of moving them from one place to another securely. File size and type are not the focus; it’s about reliable, automated transfer.
Integration:
Document management software often integrates with productivity tools (e.g., Microsoft Office) and other business systems (e.g., CRM, ERP) to facilitate document management across an organization. It helps manage documents as part of larger business processes.
A managed file transfer solution often integrates with enterprise systems (e.g., ERP, CRM, databases) to automate file transfers between systems or with external partners. It’s designed to ensure data moves between systems smoothly and securely.
Summary:
The difference between document management software and managed file transfer solutions lies in their primary functions, the way they handle files, and their intended use cases.
Document management software focuses on organizing, storing, and managing documents within an organization for collaboration, compliance, and long-term use, while managed file transfer solutions focus on securely and reliably transferring files between systems or external partners, with automation and compliance features geared towards large-scale, high-security file transfers.
In short, document management software is about managing documents within an organization, while managed file transfer is about moving files between systems or parties securely and efficiently.
Conclusion
My conversation with Judy at the data security conference alerted me to the confusion that may exist about the many types of data security software. At the end of our conversation, I joked that with all the questions I answered, I should have set up a booth titled “File Transfers: Not Just Postcards Anymore.” She laughed, though I suspect it was more out of politeness than the due to the comedic value of the punchline.
But humor aside, our chat underscores a serious point. Organizations need more than casual file sharing. A managed file transfer solution like TDXchange offers the security, automation, and compliance that today’s organizations demand. If your organization handles sensitive data and complex transfers, don’t leave it to chance—let TDXchange be your armored courier.
Feel free to contact us at info@btrade.com for more information or to schedule a demo. Let’s make data transfer easier and more secure together!