When you’re operating a business, it’s important to understand the services your business uses and the options that can positively impact your employees, customers, and your bottom line.
ExaVault is the leading provider of Cloud FTP & SFTP. We talked with ExaVault’s CEO, David Ordal, about the concepts of secure file transfer and server hosting to help you better understand how hosted SFTP is a winning solution.
We discussed the options for managed file transfer and some of the technical differences between the different protocols with David to get an understanding of the value and benefits associated with SFTP as a service in today’s SaaS marketplace.
What is SFTP, and what is an SFTP server?
SFTP is a secure protocol for transferring files. SFTP is also known as SSH File Transfer Protocol. It requires authentication by the server you’re connecting to and runs over an SSH session on TCP port 22. SSH or the ‘secure shell’ acts as a privacy layer for your connection. SFTP establishes a secure channel between your local computer and a remote computer or SFTP server. This protocol allows you to open just one secure channel for data transfer. By reducing the number of open channels to one, you are significantly reducing the risk of potential threats to your files.
Now, an SFTP server isn’t a complicated concept. It is the destination that stores files and serves them up when you connect via SFTP to download or upload. Talking with customers, we’ve found that SFTP is commonly used for automated transfers. A few examples I’ve encountered include automated transfers between an SFTP server and analytics systems, ERP systems, point of sale systems, payroll software, even daily uploads of footage or snapshots from network cameras.

What are the options for transferring data via SFTP?
When it comes to SFTP, your options for transferring data are pretty straightforward. Basically, you need access to a server and the ability to connect via SFTP. You can A) host your own SFTP server on-premise or B) purchase a hosted SFTP service.
Once that choice is made, you’ll need a couple of additional things to start transferring data. You need a way to establish an SFTP connection — usually using an FTP client — and credentials to log in to the client and server. Then, it’s either drag-and-drop or select files and choose upload, download, or other actions to move the files to the correct location on the server.
What about automated transfers?
To get a bit more advanced, SFTP is an excellent tool for managed file transfer. Say you have files that need to be transferred on a regular basis – weekly reports, transaction data to be checked and imported daily – the kinds of things that can get pretty tedious and time-consuming if done manually. With SFTP, files can be moved automatically using specialized software.
Automation makes things so much easier; how do you do that with SFTP?
I’ll say that SFTP and SSH keys go hand in hand for managed file transfer. Setting up SSH keys is a secure and easy way to make your automated transfers via SFTP. SSH keys allow for passwordless login so systems can communicate and facilitate data transfer without you needing to enter a password each time and without sacrificing on security.
The exact mechanics for setting up SFTP automations may vary depending on the software package you’re using, but generally, you’ll need to look for a ‘job,’ ‘scheduler,’ or ‘cron’ option. From there, you’ll be able to create a scheduled task that connects to your SFTP server automatically, transfers files, and closes out the connection.
How do I decide to go with a hosted SFTP service vs. an on-premise solution? Can you tell us the pros and cons of each?
In the end, the decision comes down to the investment you want to make. Servers take both time and money to set up and maintain. Plus, knowledge of how the whole thing works.
On-Prem
You might feel inclined to do everything in-house. I know that a lot of business owners want to keep things completely under their control, especially at the beginning when you are figuring out who to give money to for services. With a strong IT team, on-premise might work for your business.
On the flip side, setting up a server on-site comes at a more significant cost upfront. Plus, it can be hard to budget for expected or unexpected maintenance or disasters out of your control.
Hosted SFTP
I like to look at it this way — a hosted SFTP service is like going for the gold. You get the highest security standards in place for the server — and the rest of the service if there’s a web portal or file management system accessible online — maintained by professionals who take care of patches, updates, compliance, the whole shebang.
With hosted SFTP, the cost should either be a fixed monthly or yearly fee, like with ExaVault, or variable within a known range if the service has fees for exceeding storage or transaction limits.
Developers managing the server spend time updating and developing new features for the service. You also get support in case there is an issue or your staff has technical questions regarding your SFTP transfers.
Running your own FTP server or hosting service is expensive — and you typically are stuck struggling with an outdated desktop interface to manage the server. Using ExaVault’s FTP servers, you forgo technical and security worries and stop spending time on maintaining a server.
We hear a lot about FTP; what are the key differences between FTP vs. SFTP?
FTP and SFTP are two separate protocols for transferring data. Both of these protocols are used by businesses all over the world. The main difference between them is security.
Encryption is the additional layer of security that you don’t get with traditional FTP transfers. SFTP is encrypted and therefore does not transfer any data in cleartext. There are ways to reduce the risk when using FTP – such as requiring passwords, using a service that offers multi-factor authentication for FTP, even setting up notifications letting you know when files are received or downloaded can help. Luckily, most FTP client software supports SFTP in addition, so you can choose your protocol and stick with SFTP unless there is a requirement for FTP.
What about FTPS vs. SFTP?
First, we would recommend SFTP whenever possible. FTPS is a more secure form of FTP. Encryption of your data when transferring via FTPS is provided by special security protocols TLS (Transport Layer Security) and SSL (Secure Sockets Layer.)
FTPS, like standard FTP, opens two channels – a command channel and a data channel. You’ll want to ensure both channels are encrypted if you’re using FTPS. As mentioned earlier, SFTP uses one channel for connections and communication with the server.
If you have additional questions, you can reach out to our support team or schedule a live product demo to walk through our web application or see SFTP in action with ExaVault.
About ExaVault
ExaVault was founded in 2012 to provide a data transfer solution built for business. We’ve created the perfect balance of traditional protocols and modern features for a hosted SFTP solution that helps companies share, collaborate, and automate securely – any time, anywhere.
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