Limitations of SFTP for modern data transfer use cases

Because it was a step up from plain File Transfer Protocol (FTP), SSH File Transfer Protocol (SFTP) became the go-to method for businesses to transfer files securely. As data needs evolve and businesses move toward more complex, integrated workflows, SFTP is starting to show its age.

It’s limited in its automation, scalability, security and integration, making it increasingly inadequate for modern data transfer requirements.

Why SFTP can’t keep up

Managing file transfers is about more than just moving data from point A to point B. Maintaining control over that data while staying compliant with your industry regulations is difficult with SFTP’s basic logging features and limited visibility into the transfer process.

Security constraints

SFTP offers some protection for sensitive data, but it’s far from comprehensive. While it does encrypt data during transfer, it doesn’t provide built-in security for data at rest. So, once your files reach their destination, they’re left unprotected unless you manually integrate additional encryption tools. Such a setup introduces complexity to your security infrastructure and can increase vulnerabilities. 

Furthermore, SFTP lacks modern security features like multi-factor authentication (MFA) and advanced access controls, both of which are essential in cybersecurity today. Regulatory requirements such as GDPR, HIPAA or PCI DSS may place an even greater burden on your business to maintain end-to-end security.

Difficulty automating

Automation is a cornerstone of today’s data-driven businesses, yet SFTP lacks native tools to handle it efficiently. Implementing automation with SFTP often requires extensive manual scripting. The results are complicated, error-prone processes that are difficult to manage as operations scale. You introduce significant bottlenecks when trying to automate without native automation tools.

Integration woes

Modern data transfer often involves interactions between various systems — cloud platforms, CRMs and ERPs, namely. SFTP was not built for this level of integration and can require manual workarounds to connect with other systems. Connecting SFTP to other business systems typically requires additional scripts, APIs or manual configurations. This adds unnecessary complexity and risk to your workflows.

Every time an update or change occurs in your integrated systems, your SFTP scripts may need to be rewritten or adjusted, which consumes valuable IT resources. Ad-hoc integration can cause you to miss file transfers, inadvertently create data silos and interrupt workflows.

Lack of cloud-readiness

As businesses increasingly shift to cloud-based and hybrid models, the limitations of SFTP become more pronounced. SFTP was designed for traditional, on-premises environments and lacks the flexibility to operate smoothly in cloud or hybrid environments. Reliance on a fixed infrastructure means SFTP struggles to accommodate the on-demand scaling that cloud environments offer. If you handle large data volumes or transfer files across geographically dispersed locations, you’re likely to encounter major issues.

Trying to use SFTP in modern use cases

Below are just a few examples of what SFTP’s shortcomings look like in the real world.

• Real-time data transfers between cloud services: A global retail enterprise uses multiple cloud platforms to manage its supply chain, inventory and customer data. Exchanging data between its cloud-based warehouse management system (WMS) and CRM in real time is essential for making sure inventory levels show up accurately when customers make purchases online.
  
  Using SFTP, these real-time data transfers would be a struggle. The lack of built-in cloud compatibility would require extensive manual setup and complex scripting to manage integrations and lead to frequent delays or transfer failures.
  
  On the other hand, MFT’s cloud-native architecture would allow the data to flow effortlessly between the WMS and CRM without delay. Low-code automation features would make it easy to configure and edit workflows and save the IT team lots of time.
• Large-scale data exchanges across global locations: A multinational financial services company manages large volumes of transactions across offices in North America, Europe and Asia. Timely and secure data transfers are critical to its operations, especially in daily closing periods when numbers need to be reconciled across regions. 
  
  With SFTP, the firm would face slow transfer speeds due to inconsistent performance, and end-of-day reporting could be slow.
  
  MFT’s dynamic scaling capabilities would enable simultaneous transfers across multiple time zones, and its built-in performance optimization would ensure that data moves quickly, even during peak periods.
• Compliance-heavy industries that need advanced security protocols: A healthcare organization must comply with HIPAA regulations, which require strict data security measures during both transfer and storage. 
  
  Relying on SFTP would mean having no native protection for data at rest, so the organization would need to implement additional security tools. SFTP would also fall short in the detailed logging and monitoring required for HIPAA auditing.
  
  Switching to MFT would make it effortless to encrypt data end to end. Advanced logging and audit features would help generate the detailed reports necessary to prove compliance.

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The future of data transfer

While SFTP might have sufficed in the past, it’s truly ill-suited for the present and future landscape of data transfer. Seamless automation, advanced security and scalable performance are simply impossible to achieve using SFTP without significant effort.

MFT is made for the challenges of today and tomorrow. It’s a reliable, flexible and secure way to move data and sensitive information internally and externally.

In addition to selecting a secure, reliable MFT solution like JSCAPE by Redwood, consider how you can evolve your entire IT landscape with advanced workload automation to bring all your data exchanges together across end-to-end processes.

Book a demo to learn how JSCAPE seamlessly integrates with RunMyJobs by Redwood to take your file transfer protocols and much more into the future.