For businesses: Managed FTP Hosting or SFTP Cloud Hosting?

Published {$created} by Carsten Blum

When your business depends on secure file transfers, two options often come up: Managed FTP Hosting and SFTP Cloud Hosting.While both can deliver secure, reliable file transfers, the underlying technologies and operational models are different — and those differences can impact cost, compliance, and convenience.

What Is Managed FTP Hosting?

Managed FTP Hosting is a service where a provider sets up, maintains, and monitors your FTP or FTPS server for you.You get:

• A dedicated or shared FTP environment

• Automatic backups and monitoring

• Security patches applied by the hosting provider

• Support for both plain FTP and FTPS (explicit or implicit TLS)

Advantages:

• Full-service management — you focus on business, not servers.

• Can integrate with legacy systems that still require FTP.

• Often supports multiple secure transfer protocols.

Drawbacks:

• Usually costs more than self-hosting.

• May require VPN or firewall adjustments for FTPS.

What Is SFTP Cloud Hosting?

SFTP Cloud Hosting offers secure file transfers over the SSH protocol instead of traditional FTP. The hosting provider delivers:

• SFTP access with strong encryption

• Key-based authentication options

• Web-based management and monitoring

• Scalability without hardware upgrades

Advantages:

• End-to-end encryption via SSH

• Firewall-friendly — works over a single port

• Ideal for automation and scripting

• No legacy FTP compatibility issues

Drawbacks:

• Does not support plain FTP (not an issue for most modern workflows)

• May require key management policies

Managed FTP Hosting vs. SFTP Cloud Hosting – Key Differences

Which Should You Choose?

Go with Managed FTP Hosting if:

• You need to support older systems or partners that require FTP/FTPS.

• You want a fully managed environment with legacy protocol support.

• You have compliance requirements that dictate TLS-based transfers.

Go with SFTP Cloud Hosting if:

• You want the simplest firewall and NAT setup.

• You prioritize security and automation over legacy compatibility.

• You’re building new workflows that don’t depend on FTP.

Why ftpGrid Offers Both

At ftpGrid, we believe you shouldn’t have to choose based on technical limitations.That’s why we offer Managed FTP Hosting and SFTP Cloud Hosting in the same platform:

• FTPS for clients who need TLS and FTP compatibility.

• SFTP for teams that want SSH-based simplicity and automation.

• Automatic SSL certificate handling (Let’s Encrypt) for FTPS.

• Key-based authentication for SFTP.

Whether you’re connecting with a decades-old ERP system or automating cloud-to-cloud transfers, ftpgrid has you covered.

Final Thoughts

The choice between Managed FTP Hosting and SFTP Cloud Hosting comes down to compatibility, security preferences, and operational needs.If you’re unsure which is right for you, our team can help assess your workflows and recommend the best fit — or enable both protocols so you get maximum flexibility.

Compare ftpgrid’s Managed FTP Hosting and SFTP Cloud Hosting →

Additional relevant reading, check out our blog post about SSL automation in managed FTP hosting or SFTP cloud hosting vs. self hosting here.