Picture this scenario: Your organization has a signed contractual obligation to provide a set of services  to a business partner.  As a part of those services, you must deliver a file to your business partner no later than  4 a.m. on Monday morning. The file is produced by a batch process that is generated over the weekend and then copied to your partner using a file transfer script. Monday morning arrives and you receive an angry phone call that the file never made it to your business partner, and now they are threatening to apply the penalties section of your service level agreement.

Nobody wants that phone call. Unfortunately, that situation is possible when using file transfer protocol (FTP).

Organizations using FTP are often drawn in by the allure of an easy, familiar and inexpensive solution. But there are FTP risks.  As we prepare to close down another year and ring in 2013, it is a good time to evaluate the past year and look for organizational improvements.

We’ve identified the top four FTP risks of 2012 below:

• Reliability. FTP has been seen to have challenges with large files.  Additionally, there is no provision in FTP for determining that an error has occurred in transmission, and alerting an operator that something needs to be done.   A more risk-averse approach to mission-critical file transfers is to use a Managed File Transfer (MFT) solution, which can trigger an alert if a problem arises and even retry the file transfer automatically.
• Security. FTP has no encryption. This means that the data in the transferred files is put at risk and open to network sniffing.  Beyond that, your login credentials (username and password) are also visible to a network sniffer. Imagine the risk you incur if administrative level access to your FTP server becomes available to malicious operator. By contrast, MFT solutions encrypt files as they are sent and keep login information protected.
• Automation. FTP users run the risk of compromising login information when trying to automate the file transfer process. Automating file transfers with FTP is script-based. The system administrator has to write a script that talks to the FTP server, specifies what files to send, and where they should go on the server; however for simplicity, systems administrators will frequently write an FTP username and password into a script. This creates a notable FTP risk. People sharing scripts are also sharing user credentials.  This leaves an organization vulnerable. MFT solutions significantly reduce the need for scripts and offer built-in capabilities for automation. For example, the initiation of the file transfer, the confirmation of the file transfer, the alerting if there are problems with the file transfer, are all done without scripting.
• Auditing and Logging. Another FTP risk comes through in auditing and logging. The challenge with FTP is that it does not provide the level of auditing that organizations need to document compliance with data security regulations. It also does not allow administrators to easily identify when a problem has occurred and help resolve that problem. MFT will help you confirm that a transfer went through and log the details necessary to identify the problem when it doesn’t. This will help you avoid situations like the one described above.

Investing in a more robust solution in the new year could save you and your organization time, money and headaches by avoiding these FTP risks.

What other FTP risks have you identified?

Top FTP Risks of 2012 is a post from: Data In Motion - a Managed File Transfer blog

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The market for managed file transfer solutions is constantly changing. It is important for vendors and consumers to be savvy about these driving forces to anticipate their organization’s needs. Forrester recently came out with a report, “Market Overview: Managed File Transfer Solutions,” in which Analyst Ken Vollmer interviewed 20 MFT vendors, including Attachmate, to gather industry information and perspective.

Vollmer found the market is growing rapidly. One of the largest drivers of the growth is the increased awareness about the limitations of file transfer protocol – or FTP. Both internal and external auditors are demanding “better security and improved governance over information that leaves the enterprise.” Vollmer says that MFT solutions provide an effective option for addressing this need. Vollmer’s report suggests most MFT vendors are targeting three specific sectors, which have seen an increased need for MFT solutions. The financial, healthcare and government sectors are all seeing an increased need for a solution that addresses increased security to maintain privacy and critical information.

Forrester believes MFT revenue grew about 15 percent year-over-year in 2010 and expects this growth rate will continue for the next three years as more and more organizations realize the value of MFT solutions and update their infrastructures.

The report concludes that the trend of traditional FTP being replaced with more robust MFT solutions will continue and that those FTP solutions will “no longer be adequate for meeting file transfer needs.” I’ve written about some of the limitations with FTP in previous posts.

For more information, including interesting survey data, you can check out the full Forrester report, “Market Overview: Managed File Transfer Solutions.”

A Look at the Managed File Transfer Market is a post from: Data In Motion - a Managed File Transfer blog

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Everywhere you look people are trying to save a buck or two, but even when you have a goal of reducing operational costs there are some things that aren’t worth shortcuts. In fact, these shortcuts can actually cost you more money in the long run. File transfer is one example of a place you don’t want to cut corners.

We talk a lot about file transfer on the Data in Motion blog, and when it comes to why having a well-designed solution is important, like Deep Throat said in the film “All the President’s Men”, “Follow the money!”

Transferring files seems straightforward; the actual copying process is readily implemented with common networking and server infrastructure. But there are hidden costs that quickly begin to appear without the benefit of a strategic approach to file transfer. Here are three key reasons why failing to make an upfront investment in a managed file transfer solution will result in higher costs down the road:

• Maintenance and support. One of the reasons homegrown file transfer programs can be written so quickly is that they tend to have minimal features. But over time, business requirements change and become more complex. For example, a simple transfer from point A to point B might now need to go to C and D, as well. Expanding a homegrown solution can be costly when you add up the time needed to program and fully test the new solution.
• Opportunity costs. Skilled developers have no shortage of potential projects, which means they don’t have a lot of time to devote to troubleshooting a homegrown file transfer solution that will likely have holes. This means that code will likely fail at inopportune times and developers will be forced to develop, debug and resolve these issues. This isn’t a good use of resources when a developer could otherwise be working on high return-on-investment development initiatives.
• Potential security risks. Data disclosure can have one of the most devastating impacts to a business. Imagine an attacker finding a privileged username and password embedded in a file transfer script. That now-compromised account could be a stepping stone to compromising a server and collecting any data stored on that system. With homegrown solutions, there may be limited or even no protection against unauthorized access which could financially impact an organization in a number of ways.

These hidden costs lurk among homegrown file transfer solutions and controlling these costs is where managed file transfer solutions excel. Imagine being able to easily address these money-draining issues; translating them into long-term savings, and in the long term reducing operational costs.

By providing a more declarative approach to automating file transfers, managed file transfer solutions deliver the flexibility to quickly support new processes. Reusability is key to saving time and money, and this is at the heart of a good managed file transfer offering.

Supportability is another built-in function offered in managed file transfer. What if your file transfers automatically alerted your operations team if there was a problem? Reducing operational costs often means getting more done with fewer IT staff.  What if the file transfer was automatically started again after a failure?  No more lost opportunity cost as your developers tried to figure out where the problem was.

Finally, managed file transfer solutions are built secure. What if your architecture team could quickly set up a secure method of exchanging files over the Internet with business partners and customers?  Imagine a solution that masks the complexity of encryption, protocols, firewalls and DMZs from your developers. 

When it comes to homegrown or even free file transfer solutions, be sure to carefully assess your needs and resources in order to choose a solution that best fits your specific environment. The right fit has the potential to save you more money in the long run.

If you would like more information on how Attachmate’s FileXpress allows your organization to build a strategic and cost-saving file transfer infrastructure, check out our Solution Brief titled “Controlling the Cost of File Transfers“.

Reducing operational costs with managed file transfer is a post from: Data In Motion - a Managed File Transfer blog

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