Managed File Transfer
What is Managed File Transfer?
Managed file transfer (MFT) is defined by Info-Tech Research Group as “a secure file transfer service that manages the secure transfer of data from one computer to another through a public network, such as the Internet.†That simple description belies a lot of important functionality that makes MFT an essential part of an enterprise’s IT toolkit. A good MFT solution should feature extensive process automations, support for strong encryption for data at rest and in motion, robust security controls, easy integration with common business applications and services, and easy to use.
Coviant Software’s Diplomat MFT is one of the industry’s most respected managed file transfer software solutions because it is designed with features that make file transfer secure, simple, and reliable. Diplomat MFT installs in minutes—no special tools or scripts are needed, and it boasts features like automated PGP encryption, data capture and archiving, audit reporting and alerting, and limitless scheduling. That’s why many leading organizations in healthcare, financial services, retail, manufacturing, law, government, and more choose Diplomat MFT to tackle their file transfer needs and to support privacy and security compliance mandates.
60-70%
COST REDUCTIONS in areas related to file transfer management
Ensuring Secure & Compliant File Transfers with MFT Software
Data Security & Compliance
MFT Software provides robust protection through encryption of data at rest and in motion. It ensures adherence to critical privacy and security regulations, including HIPAA, GDPR, and GLBA, for legal and ethical data handling.
Risk Mitigation
MFT proactively reduces data breaches stemming from human error. By implementing safeguards and streamlined processes, the software minimizes vulnerabilities from human interaction, enhancing overall data integrity.
Scalability & Performance
An MFT system efficiently handles the largest files and most complex scheduling requirements. This ensures optimal performance and responsiveness, even in the most data-intensive environments.
What is Managed File Transfer (MFT) and How Does It Help?
Managed File Transfer (MFT) is a secure, centralized solution for automating and controlling the movement of files both within an organization and between external partners, cloud platforms, and endpoints. The attached diagram illustrates how MFT platforms—such as Diplomat MFT—are deployed to ensure secure, compliant, and reliable data exchanges, especially in regulated industries like healthcare and finance.
At its core, MFT provides a secure bridge between the Internet (external sources like cloud storage or business partners) and an organization’s Trusted Network (internal servers, databases, and directories). Diplomat MFT leverages a Demilitarized Zone (DMZ) using its Edge Gateway, a secure middle layer that ensures:
- No credentials or sensitive files are ever stored in the DMZ.
- No inbound firewall ports are opened, mitigating one of the most common attack vectors.
- A multi-layered security approach, minimizing the risk of data breaches.
The solution supports integration with cloud storage services such as Azure Blob, Amazon S3, Dropbox, Box, OneDrive, and SharePoint, as well as endpoints like Databricks, Workday, and SAP Concur. This allows for seamless and governed data flows between modern SaaS platforms, business partners, and internal systems.
On the trusted internal side, Diplomat MFT provides:
- Web-based administration via secure browser access, making it simple for IT teams to manage and monitor.
- Tight integration with Active Directory or Entra (LDAP) and SAML-based Single Sign-On (SSO) for authentication and user management.
- Secure connectivity to internal SFTP servers, databases, file servers, and even email servers for intelligent routing and processing of data.
Key Benefits of Managed File Transfer
- Security and Compliance
MFT enforces encryption (e.g., PGP), strong authentication, and complete audit trails to meet HIPAA, GDPR, SOX, and PCI-DSS compliance requirements. - Operational Efficiency
File transfers are automated, monitored, and retried as needed—reducing manual effort and the risk of human error. - Centralized Governance
IT teams gain full visibility into file movements across environments and can enforce data policies uniformly. - Risk Mitigation
By removing the need to expose internal systems directly to the internet, the DMZ gateway minimizes vulnerability to attacks. - Cloud and SaaS Integration
MFT bridges traditional infrastructure with modern cloud platforms, facilitating hybrid data workflows with ease.
In summary, Managed File Transfer is not just a better SFTP server—it’s an enterprise-grade solution for securely moving sensitive data with control, visibility, and compliance at its core. Platforms like Diplomat MFT play a crucial role in modern data architecture, especially for organizations that must securely connect internal systems to the broader internet landscape.
Diplomat MFT: Beyond Standard File Transfer
Diplomat MFT also supports multi-factor authentication and all the popular authenticator apps, role-based access and administration, elliptical curve encryption and NIST-standard post-quantum cryptography algorithms, and one-click network mapping to conform with information security best practices. Diplomat MFT is also valued because it integrates easily with all the business applications and cloud service providers organizations already use. That includes cloud storage and services from Azure, AWS S3, Google Cloud, Oracle Cloud, Box, Dropbox, and Citrix Sharefile. Best of all, Diplomat MFT is easy to use, helping to make organizations run more efficiently and more securely.
Diplomat MFT is secure-by-design (more than two decades without a breach), purpose-built with the customer in mind, and backed by the industry’s top-rated technical and customer support, setting it apart from competitors and do-it-yourself file transfer systems cobbled together from shareware, command line FTP, and custom scripts. And Diplomat MFT includes decades of experience to make sure your managed file transfer needs are all met and supported. That’s not always the case with alternative file transfer methods. Let’s take a closer look at those other options.
Alternatives to MFT and their Drawbacks
While Managed File Transfer (MFT) offers a robust and secure solution for critical data exchange, organizations sometimes explore alternative methods due to perceived simplicity or cost savings. However, these alternatives often come with significant drawbacks, compromising security, scalability, and efficiency. From homegrown scripts to everyday communication tools, understanding the limitations of these approaches is crucial for any business handling sensitive or high-volume file transfers. Let’s examine some common alternatives to MFT and the inherent risks they pose.
Custom Scripts & DIY MFT Solutions
Because file transfers are a common task for most enterprises, and because MFT’s functionality seems simple, many organizations make the mistake of trying to create their own homegrown solutions to achieve MFT functionality. That’s a mistake. Cobbling together a combination of consumer-grade file sharing, cloud storage, and custom scripts written by someone in IT might save money in the short term, but as a long-term, reliable solution, it is an approach fraught with risk.
Custom scripts don’t scale, aren’t easy to use, don’t do all the things a true managed file transfer platform can, are difficult to maintain and expand, are insecure, and are error-prone. As soon as there’s a failure like a transfer that is unaccounted for, a missed alert, an unknown bug, if there’s a security issue, or if there is a need for a capability that wasn’t considered when the home-grown solution was made, the expense skyrockets and the benefits nosedive.
Furthermore, only a few people truly understand how to execute, manage, and extend those custom scripts, putting a business at risk should any of those people fall ill or  leave the company. By choosing a commercial MFT solution, you are buying not only the license to the software, but also the full support of the company behind the software.
Email is a simple way to send a document or file, but it is an impractical and risky approach to sending sensitive, business critical files.  Email can be sent over insecure protocols, and there is no guarantee that the file reaches its intended recipient unless you install complex S/MIME software that supports encryption and signing (which very few people do).  Furthermore, email attachments are limited in size – so you cannot deliver that 200MB radiology file to the oncologist as an attachment.
Consumer-Grade, Cloud-based File Sharing
There are a number of cloud-based file sharing systems that offer consumers a great way to store and even collaborate on documents, graphics, spreadsheets, and pictures.  They support a wide variety of features to promote idea sharing, revisions, comments, and assigning tasks.  But these systems can introduce risk to a business by circumventing IT security control.  And because these are human-centric tools (where humans interactively collaborate on documents or files), there is the increased risk of human error as well as little to no support for automation.  Businesses need to be aware, too, of the potential for costs spiraling out of control since these systems charge not only per user, but also for storage – not only of the files themselves, but also their multiple revisions.
Other
There are numerous ways for files to move between systems beyond what has already been mentioned.  Many customers still use “sneakernet†to put files onto removable media (usb memory sticks, disks, or even tape) and walk them to another system to copy files there.  This is prone to data loss, as can be seen in many historical events of that removable media being lost or stolen.
Stick with Tried-and-True Diplomat MFT
When you consider the risks, costs, and hassles associated with using lesser alternatives, investing in tried-and-true Diplomat MFT makes sense. One study by Stanford University suggests that human error plays a role in 88% of data breaches. That includes mistakes like transmitting files containing highly sensitive information in the clear, or to the wrong recipient. Process automation Coviant Software has built into the Diplomat MFT family of products ensures that your files are encrypted before sending, that they’ve been sent to the correct organization, and that every step of the file transfer process is documented so that you can prove compliance.
Some people think they can save a few dollars using a do-it-yourself approach to file transfer, but that puts your organization at risk even more. Our team has many decades of combined experience and expertise in managed file transfer technology, designing and delivering a product with all the things FTP, SFTP, FTPS, can’t do, and all the things do-it-yourselfers haven’t yet figured out. And we offer Diplomat MFT at a fair price.
Coviant Software customers can take comfort in knowing Diplomat MFT is available and reliable when needed, secure from start-to-finish, and has the scalability to handle the most demanding file transfer tasks. That’s because Diplomat MFT was designed to solve the problems you’re facing and at a cost that makes sense.
Features & Benefits
Diplomat MFT: All-in-One MFT Made Easy
01
Easy Integration
Integrates easily with AWS, Azure, Google Cloud, Oracle and more.
02
Protocol Support
Manage multiple workflows simultaneously using any standard protocol.
03
No Code Automation
Automates the transfer of sensitive files across your entire digital supply chain.
04
Built-In Quantum Safe Encryption
Safeguard sensitive data mitigating current and future cryptographic threats.
05
One-Click Regulatory Compliance
Adhere to diverse industry standards including GLBA, GDPR, DORA and PCI DSS.
06
Secure Healthcare File Transfers
Ensure the privacy and security of PHI, while meeting stringent healthcare regulations such as HIPAA and HITECH.
07
Cloud Storage Connectors
Push and pull files to S3, Blob, GCP and many more
08
SFTP Server
Enterprise SFTP server for receiving files or hosting them for collection
09
Remote Agents
Securely transfer files using OpenPGP encrypted files to remote locations
Years of experience
Individual transfers per day
Terabytes transferred per day
Concurrent jobs
Frequently Asked Questions
What is Managed File Transfer?
Managed File Transfer (MFT) is a secure, automated technology designed to facilitate the movement of sensitive data between systems, applications, partners, and cloud environments. Unlike traditional file transfer methods like basic FTP or email attachments, MFT provides centralized control, auditability, encryption, and automation—all of which are essential for today’s data-driven, compliance-bound organizations.
The primary purpose of MFT is to replace insecure, manual, or ad-hoc file transfer processes with a consistent, governed solution that protects data in motion and ensures reliability. It serves as a strategic backbone for securely exchanging files across the Internet, between internal systems, and with third-party partners or platforms.
What is File Transfer Protocol?
File Transfer Protocol (FTP) is a technology used for moving files, but that does not include the option for encrypting data in transit. It was originally designed for use in private scientific and research networks and is based on a specification defined in 1985 by the Internet Engineering Task Force in RFC 959. FTP uses two connections to send data. Authentication data (e.g., usernames and passwords) is exchanged on a command channel, then data files are sent on a separate channel that is established after the authentication is complete.
What are the advantages of MFT?
Another key advantage is compliance. Whether an organization is subject to HIPAA, GDPR, SOX, or PCI-DSS regulations, MFT solutions offer the audit logging, data handling controls, and encryption standards needed to meet strict data governance requirements. Every file transfer can be tracked and reported on, providing transparency and accountability that manual or legacy processes can’t match.
MFT also greatly improves operational efficiency. It automates recurring transfers, handles file retries and failures intelligently, and eliminates the need for custom scripts or manual interventions. This reduces the burden on IT teams, speeds up data exchange processes, and lowers the chances of human error. As business ecosystems grow more complex—with files moving between on-premise servers, cloud platforms like Azure and AWS, and third-party SaaS tools—MFT provides a reliable, scalable way to keep data flowing smoothly and securely.
Ultimately, MFT gives organizations the confidence to share sensitive data internally and externally, without compromising security, visibility, or compliance. It transforms file movement from a risky, siloed task into a strategic and controlled part of enterprise data operations.
What are common features of MFT?
Managed File Transfer (MFT) platforms are designed with a rich set of features that go well beyond basic file movement, reflecting the need for security, automation, integration, and control in enterprise environments. One of the most common and critical features is secure file transfer itself—MFT solutions typically support encrypted protocols like SFTP, FTPS, HTTPS, and PGP, ensuring data remains protected during transmission and at rest. They also offer comprehensive user authentication options, often integrating with corporate identity systems such as Active Directory, LDAP, or Single Sign-On (SSO) via SAML, helping organizations manage access in line with their existing security policies.
Another hallmark of MFT is automation. These platforms are built to schedule, trigger, and manage file transfers without manual intervention. Whether it’s moving files at a specific time, in response to an event (like a file being dropped into a folder), or as part of a business workflow, MFT systems can automate the entire process—complete with error handling, retries, and notifications when things go wrong or succeed. This reduces human error, increases efficiency, and ensures data gets where it needs to go, when it needs to be there.
Monitoring and visibility are also central features. MFT platforms provide real-time dashboards, audit trails, and logging that allow IT teams to track who transferred what, when, and where. This level of oversight is critical for troubleshooting, auditing, and maintaining compliance. Many MFT solutions also support integrations with cloud storage services (like Azure Blob, AWS S3, or SharePoint) and third-party endpoints such as Workday, Snowflake, or SAP Concur, allowing organizations to centralize and govern all file exchange activity from one platform.
Overall, the common features of MFT combine to deliver secure, automated, auditable, and flexible file transfers—making it an essential component of secure enterprise data exchange.
What does MFT cost and why do prices vary widely?
The cost of Managed File Transfer (MFT) solutions can vary significantly depending on the scope, scale, and complexity of the deployment. Some MFT platforms are priced for small to mid-sized organizations with relatively simple requirements, while others are built for large enterprises with advanced security, compliance, and integration needs. At a basic level, pricing is typically determined by factors such as the number of endpoints, volume of file transfers, type of automation required, and whether the solution is deployed on-premise, in the cloud, or in a hybrid model.
Entry-level MFT solutions might start at a few thousand pounds or dollars per year for a single-server deployment with limited features. In contrast, enterprise-grade platforms—especially those that include high availability, clustered architecture, integration with multiple cloud platforms, and compliance features—can cost tens or even hundreds of thousands annually. Licensing models also differ: some vendors offer perpetual licenses with maintenance fees, while others follow a subscription-based model that includes updates and support.
The reason prices vary so widely is because not all MFT solutions offer the same capabilities. Some products are focused purely on secure file transfer and basic automation, while others provide comprehensive workflow orchestration, real-time monitoring, advanced user and role management, and full API access. Additionally, the level of professional services required can influence the overall cost. While some platforms are no-code or low-code and can be configured internally, others may benefit from vendor-led implementation, especially in regulated or complex environments.
Ultimately, MFT pricing reflects the value it delivers—namely secure, reliable, and compliant data movement across increasingly complex ecosystems. Organizations investing in MFT are not just paying for a utility, but for the assurance that sensitive files are handled safely, consistently, and in full alignment with business and regulatory expectations.
Managed file transfer is a mature technology with a well-defined role in data management and security. Some vendors inflate their costs with unnecessary options, or by bundling their MFT products with other technologies. Coviant Software offers Diplomat MFT at a fair price that is often a fraction of what others charge. Our prices and features are listed here.
What are the risks of not using a professional MFT software solution?
Relying on ad hoc, manual, or legacy file transfer methods instead of a professional Managed File Transfer (MFT) solution introduces a number of serious risks—both technical and business-related. One of the most immediate concerns is security. Traditional tools like basic FTP, email attachments, or custom-built scripts often lack proper encryption, authentication, and access controls. This leaves sensitive data—such as personal health information (PHI), financial records, or proprietary business files—exposed to interception, loss, or misuse during transit.
In addition to security vulnerabilities, non-professional file transfer setups are difficult to manage and audit. Without a centralized platform, IT teams are often left with little or no visibility into what files are moving, who’s sending or receiving them, and whether the transfers have succeeded or failed. This lack of transparency creates compliance headaches, especially in industries that are subject to regulations like HIPAA, GDPR, or PCI-DSS. When something goes wrong—a failed delivery, a missing file, or a breach—it becomes nearly impossible to trace the root cause or prove due diligence without proper logs and audit trails.
There’s also a significant risk to business continuity and reliability. Scripted or manual file transfers tend to be fragile. They often depend on specific users, outdated systems, or unmonitored endpoints. If a key staff member leaves or a system crashes, there may be no fallback or alerting mechanism in place—leading to delays, lost data, or operational disruption. Over time, this patchwork of scripts and tools can become a liability, both in terms of maintenance overhead and exposure to failure.
Finally, there’s the matter of scalability and integration. As businesses grow, so do their file transfer needs—across cloud services, third-party vendors, internal departments, and applications. Without a professional MFT platform, it becomes increasingly difficult to manage growing volumes, schedule and orchestrate transfers, or integrate securely with modern services like Azure, AWS, or SaaS platforms. What starts as a quick fix can quickly become an unscalable bottleneck.
In short, not using a professional MFT solution can lead to data breaches, compliance violations, operational failures, and long-term inefficiencies. Professional MFT platforms are designed to eliminate these risks by offering secure, automated, and auditable infrastructure for handling critical data exchanges—replacing uncertainty with confidence.
Will Diplomat MFT help my business comply with data privacy and security regulations like GDPR, HIPAA-HITECH, GLBA, SOX, etc.?
Yes, Diplomat MFT is specifically designed to support businesses in meeting the technical and procedural requirements of major data privacy and security regulations, including GDPR, HIPAA-HITECH, GLBA, SOX, and others. These regulations all share common expectations: sensitive data must be protected in transit and at rest, access must be restricted and auditable, and organizations must be able to demonstrate that appropriate safeguards are in place. Diplomat MFT delivers on all of these fronts with a secure, centralized platform for managing file transfers across internal systems, external partners, and cloud services.
At its core, Diplomat MFT enforces strong encryption protocols—including PGP and TLS—to protect data while it’s being transferred, and ensures that files are not left exposed at any point during the process. It integrates with existing authentication systems like Active Directory or SAML-based SSO, enabling organizations to enforce role-based access control and align user permissions with internal policies. Every transfer is automatically logged, creating a clear and complete audit trail that’s essential for demonstrating compliance during audits or incident investigations.
What makes Diplomat particularly well-suited for regulated environments is its zero-trust approach to network architecture. Sensitive credentials and data are never stored in the DMZ, and the use of its Edge Gateway allows transfers to occur without opening inbound firewall ports—significantly reducing the attack surface and aligning with the principle of least privilege.
In practical terms, this means that healthcare organizations can transmit PHI securely in line with HIPAA-HITECH, financial institutions can handle client data in compliance with GLBA, and companies operating under GDPR can enforce strict data access and protection standards for EU residents’ personal information. Whether your regulatory focus is privacy, accountability, or security, Diplomat MFT provides the controls, transparency, and automation needed to meet your obligations with confidence.
How does Diplomat MFT software help to reduce business risk / prevent cyber security attacks?
Diplomat MFT plays a significant role in reducing business risk and strengthening an organization’s defense against cybersecurity threats by addressing some of the most common and vulnerable areas of data movement. File transfers are a frequent target for attackers—especially when handled through legacy FTP servers, manual processes, or exposed systems that require open firewall ports. Diplomat MFT is specifically designed to close these gaps by providing a secure, automated, and governed platform for handling sensitive data exchanges.
One of the most impactful ways Diplomat reduces risk is through its zero-trust DMZ architecture. Unlike traditional file transfer methods that expose internal systems to the public internet, Diplomat’s Edge Gateway ensures that no data or credentials are ever stored in the DMZ, and crucially, no inbound ports need to be opened on your internal firewall. This approach dramatically reduces the attack surface, helping to prevent common intrusion techniques such as port scanning, credential harvesting, or remote execution exploits.
Diplomat MFT also enforces strong encryption standards—like PGP for file contents and TLS for data in motion—ensuring that even if data were intercepted, it would be unreadable and unusable to attackers. Combined with built-in support for role-based access control, secure authentication methods (including LDAP and SSO), and detailed audit logging, the platform allows organizations to tightly manage who has access to what, and monitor all activity in real time. This level of oversight and accountability is essential for detecting anomalies early and responding to threats quickly.
Automation is another key factor in risk reduction. By eliminating manual file handling—often reliant on individual users or vulnerable scripts—Diplomat MFT reduces the risk of human error, such as sending data to the wrong recipient or misconfiguring security settings. It ensures that transfers happen on schedule, securely, and with full visibility, giving IT and compliance teams peace of mind that nothing is falling through the cracks.
In essence, Diplomat MFT doesn’t just make file transfers easier—it makes them fundamentally safer. It helps organizations move away from risky, fragmented methods and toward a unified, policy-driven approach to data exchange, lowering the likelihood of breaches, data loss, and operational disruptions.
Secure your file transfers with Diplomat MFT. Start a free trial and see how our managed file transfer supports your compliance and efficiency goals.
WHAT OUR CUSTOMERS SAY
G2 is the largest and most trusted software marketplace. More than 90 million people annually—including employees at all Fortune 500 companies—use G2 to make smarter software decisions based on authentic peer reviews.
Scott J.
Diplomat MFT has been a powerful workhorse for all of our enterprise file exchange for many years. No other enterprise application we use comes with the same level of support we receive from Coviant.
Eric D.
Director of Information Technology
The support is fantastic. I had to contact them on a few occasions – as it turns out, not for issues with Diplomat MFT but issues with one of the FTP partners. Coviant support stuck with me and went above and beyond to troubleshoot and figure out the issue.
Dave L.
Manager of Information & Technology
Diplomat MFT is a solid data transfer product, its easy to set up, and easy to use. I like the way the transaction builder is laid out. It’s so easy to understand what values it wants.
Adah B.
Extremely robust platform for managing our enterprise file transactions. Every upgrade provides us with additional useful tools to streamline our business processes.
Stephen H.
IT BI Analyst SE
I find the sftp file transfers to be the most helpful tool of Diplomat MFT. No need for programming, the interface is customized already and users only need to fill in the boxes.
Jeff M.
The interface and GUI are very straightforward. The options are simple and labeled so anyone can understand how to set up and configure. The ability to test something without actually sending something is also beneficial.