December 21, 2021

    Why Outsource a Dedicated Managed File Transfer Server?

    The need for outsourcing your Managed File Transfer (MFT) hosting service to a provider that offers a dedicated server option becomes apparent to any organization that handles, stores or shares sensitive files. Once your organization recognizes the need for an FTP hosting service, and once it realizes in-house solutions are cost-prohibitive, it’s time to answer this question: Should you choose a shared infrastructure option, or a dedicated infrastructure option?

    No two organizations are exactly alike, so this question must be answered on a case-by-case basis. Outsourcing your File Transfer services provides a number of benefits that your organization may want to take advantage of. Here’s a look at the 4 primary benefits of choosing to go with a dedicated infrastructure (not shared) option for your managed file transfer services rather than using shared infrastructure for your file transfers.

    1. Guaranteed Performance

    When you choose a MFT service, it may not be more disk space that your organization needs. You can archive your files anywhere, and we are typically only a temporary landing spot. In many cases, you will be sharing a server with a handful of other organizations or more. If those organizations go through periods when a high-volume of concurrent connections are needed, your FTP performance may lag. This is commonly known as the “noisy neighbor” effect. If your organization can't tolerate the noisy neighbor effect, then a dedicated server option might be the best fit for you.

    Again, this may not matter to an organization that’s doing a limited amount of storing and sharing of sensitive files. But, to an organization that needs reliable performance on-demand, opting for a dedicated server is one of the best ways to guarantee performance.

    The Sharetru team constantly monitors usage. In some cases, we encourage users who regularly go through periods of high volume to graduate to our dedicated server option. This helps ensure that users on shared servers get the reliable performance they expect. But a dedicated FTP server eliminates even the possibility that organizations sharing your server may affect performance and the experience of your users.

    2. Financial Benefits of a Dedicated MFT Server

    If your organization can't tolerate noisy neighbors, and understands the overhead involved in self-management, then an MFT server with FTP, SFTP, and FTPS capabilities emerges as a highly economical strategy compared to the significant expenses involved in developing and maintaining an in-house solution. Let's delve into the detailed analysis of why outsourcing this service stands as a cost-effective decision for businesses.

    Opting for an MFT service that offers a dedicated server option with SFTP, FTPS, and FTPeS integration means your primary financial commitment is limited to manageable monthly or annual subscription fees. In contrast, the initial creation of an in-house FTP solution could burgeon to an investment of approximately $12,500. Moreover, maintaining this in-house infrastructure incurs additional yearly costs up to $21,500. Hence, in the first year alone, businesses could see expenditures soaring to nearly $34,000, with recurring annual costs of up to $21,500 thereafter.

    Conversely, "renting" a dedicated MFT server in the cloud could significantly cuts down on setup and maintenance expenses -- this doesn't include the security and compliance expenses which we'll get to later. Instead of substantial yearly maintenance outlays, organizations enjoy a simple subscription model tailored to their specific storage needs and feature requirements. This approach not only streamlines budgeting but also ensures scalability and flexibility in operations.

    Furthermore, renowned MFT service providers boasting dedicated infrastructure options, such as Sharetru, offer solutions designed to comply seamlessly with prevalent industry standards and regulatory mandates. This advantage highlights a dual benefit: not only do renters sidestep the high capital expenditures (CAPEX) typically associated with purchasing and operating an in-house FTP server, but they also gain immediate compliance capabilities, aligning effortlessly with necessary legal and industry-specific frameworks.

    Why Oursourcing a File Transfer Server Is a Smart Financial Move

    • Potential Cost Savings: Eliminate the eye-watering setup and maintenance costs tied to an in-house solution.

    • Scalability and Flexibility: Adjust your plan based on your current needs without overcommitting financially.

    • Compliance Made Easy: Benefit from pre-configured compliance with industry standards, sparing your team from complex regulatory hurdles.

    A subscription-based, MFT service in the cloud not only represents a pathway to significant cost reduction but also affords businesses the agility to adapt to changing needs while ensuring compliance. The choice to rent over purchasing an FTP server caters to a strategic, financially prudent approach, crucial for organizations aiming to optimize their operational expenditures without compromising on performance or security standards.

    3. New Opportunities

    Outsourcing your Managed File Transfer services to a SaaS model in the cloud can also help your organization take advantage of new opportunities. Some corporations have policies requiring dedicated servers for sharing sensitive files, and they may also require similar infrastructure from their partners. In the future, you may find that choosing dedicated FTP server hosting over a shared option opens up new partnership opportunities with those corporations.

    Similarly, you may find that some government agencies require a dedicated file server for FTP before agreeing to contracts with private organizations. If you currently do business with the U.S. government, if you expect to do business with the U.S. government, or even if you would like to do business with the U.S. government in the future, choosing a dedicated FTP client could make compliance far easier than otherwise.

    A dedicated FTP server can also provide new opportunities internally. For example, a dedicated server through Sharetru allows an organization to divide their allocated storage across multiple departments with separate sites for each group for a low annual fee per additional instance. This setup provides organizations with a way to allocate costs based on departmental storage allowances — ultimately allowing storage expenses to be shared more fairly.



    4. Simplified Security and Compliance

    In the current digital environment, prioritizing top-tier security and compliance for your data transfers stands as a crucial necessity. A highly strategic approach to alleviate this demanding responsibility is to outsource Managed File Transfer (MFT) operations to a recognized provider. Opting for a partnership with an entity that has already successfully navigated the intricate landscape of compliance certifications allows your organization to effortlessly align with severe security mandates by harnessing their vast expertise and superior infrastructure.

    The Importance of SOC 2 Type II Compliance for MFT Providers

    Selecting a Managed File Transfer provider for your dedicated file transfer services boasting SOC 2 Type II compliance is paramount. This prestigious certification is a clear indicator of a service provider's unwavering commitment to high-caliber security and comprehensive data protection standards over an extended period. The accolade of SOC 2 Type II compliance symbolizes a continuous commitment to rigid security maintenance, underpinned by frequent assessments to guarantee an ongoing adherence to the strict regulations established by the American Institute of Certified Public Accountants (AICPA).

    If you've decided that outsourcing your dedicated MFT server to the cloud, then it makes sense to choose a vendor that carries SOC 2 Type II validation significantly diminishes the complexity of independently satisfying these exhaustive security and compliance protocols. This strategic move not only streamlines the protocol conformance process for your data transfer endeavors but also instills a robust sense of tranquility knowing that your critical data management is in competent hands.

    Establishing a Secure and Compliant Data Transfer Framework

    Entrusting your Managed File Transfer services to a provider that is certified for the SOC 2 Type II standards erases major security apprehensions, safeguarding your organizational data meticulously. This meticulous compliance ensures top-notch data handling, closely adhering to time-tested security frameworks and methodologies. Affiliation with a provider that has a verified history of secure data management enables your enterprise to concentrate more diligently on essential business operations, alleviating the stress associated with data security and regulatory compliance intricacies.

    In essence, the choice to outsource your MFT necessities to a vetted and compliant partner transcends mere task delegation. It represents a strategic initiative to forge a durable foundation of trust and security that propels your business's operations. It certifies that as your organization continues to flourish and evolve, the integrity and compliance of your data remain uncompromised and robust.

    Understanding MFT Hosting: Choosing the Right Protocols

    In the realm of digital file transfers, MFT hosting services have evolved to offer more than just basic FTP (File Transfer Protocol) capabilities. Providers like Sharetru provide an advanced suite of options that include FTP, SFTP (SSH File Transfer Protocol), and an HTTPS web application for file transfers. While FTP may be a familiar term, we delve deeper into the safety and differences between FTP and SFTP in our comprehensive articles.

    Traditional FTP, though widely used, carries risks as it lacks encryption. This means that files transferred are vulnerable, and if intercepted, they are fully exposed and readable. Considering the risks of unencrypted file transfers, the importance of secure methods cannot be overstated.

    Enter SFTP. This robust protocol incorporates a secure shell (SSL), ensuring that your file transfers include in-transit encryption. In the event of data interception, SFTP keeps your files locked away from unauthorized eyes, making them unreadable and therefore secure.

    At Sharetru, we understand the need for tailored security, which is why we offer both FTP and SFTP solutions as part of our comprehensive file transfer protocols suite. Our offerings aren't limited to traditional FTP or SFTP servers. We provide a dedicated server infrastructure allowing customers within the Sharetru application to select from FTP, SFTP, FTPS, FTPeS, or HTTPS based on their particular security protocols and preference.

    The terms FTP and SFTP are often mistakenly used as if they're the same, but it's crucial to note that SFTP has emerged as the go-to protocol in the modern age, especially for organizations dealing with sensitive information. Hence, when the term "dedicated FTP server" appears, it's important to recognize that Sharetru extends the more secure "dedicated SFTP server" option, aligning with the needs of security-conscious organizations.

    Get the MFT Solution Your Organization Needs

    The best MFT solutions scale and shift to meet the unique needs of your organization at any given moment. At Sharetru, we offer both shared and dedicated FTP server options, plus the ability to change plans as needed to support your business. When you need to store and share sensitive files, we deliver the right FTP solutions.

    If you know you need a dedicated FTP file hosting service, or if you’re debating shared vs. dedicated FTP server options, our team is always here to provide expert guidance. Contact us for a demo of our FTP solution, plus answers to your dedicated FTP server questions.

    Brendon Ainsworth

    Brendon, Sharetru's CRO & VP of Sales, brings diverse industry experience, excelling in GCP & AWS infrastructure certifications.

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