The Shocking Truth About Business FTP

Published {$created} by Carsten Blum

A recent study revealed a startling statistic: over 60% of businesses still rely on standard FTP for file transfers. While seemingly innocuous, this reliance carries significant risks and inefficiencies that most organizations aren't fully aware of. It's a legacy habit impacting security, bandwidth, and overall productivity.

Let’s unpack this. Standard FTP, born in 30 years ago, transmits data – including usernames and passwords – in plain text. Think about the types of files businesses routinely share: financial records, customer data, design assets, video surveillance footage. Sending that information through an unencrypted channel is like mailing sensitive documents in an envelope with the return address clearly visible.

Why is this still happening? Inertia. Many businesses have long-standing processes built around FTP, and migrating to a more secure and modern solution like SFTP or a cloud FTP solution can seem daunting. It's often viewed as a technical hurdle rather than a strategic imperative.

The Risks Are Real

Beyond the obvious security vulnerabilities, relying on plain FTP impacts businesses in other ways. Bandwidth limitations, downtime due to server issues, and the need for dedicated IT resources to manage servers all contribute to higher operational costs. Many struggle with complex firewall configurations and active/passive mode issues. Businesses using FTP, especially those with external contractors, are exposed to significant risks.

A Better Way: Cloud FTP Solutions & SFTP

SFTP (SSH File Transfer Protocol) is a vastly improved alternative. It uses an SSH tunnel to encrypt all data, eliminating the risk of interception. A cloud FTP solution takes this a step further by offloading the infrastructure management to a specialized provider, like ftpGrid.

With ftpGrid, you get:

• Enhanced Security: Encryption at rest and in transit using TLS 1.3. Key-based authentication (see our guide on advanced SSH key authentication for SFTP) for increased security beyond passwords.
• Simplified Management: No more server maintenance or complex firewall configurations. Our dashboard provides a user-friendly interface for managing accounts and monitoring usage.
• Scalability and Reliability: Benefit from our high availability architecture and data replication across multiple regions.
• Developer Friendly: Integrate seamlessly with your existing workflows using our SFTP API.

Furthermore, our free tier allows you to experience the benefits firsthand – a small step towards securing your file transfers without a large investment. Need to share files without the limitations of email? Consider ftpGrid as a better alternative to WeTransfer.

Migrating away from standard FTP isn’t just about ticking a security box; it's about modernizing your business and improving overall efficiency. It's time to ditch the legacy and embrace a more secure and reliable way to transfer files.