The decision to use either SFTP or API integration methods relies on your business requirements and technical abilities. SFTP is a secure way to transfer flat files, while APIs are more effective for real-time data exchange and seamless system integrations.
SFTP is easy to implement and works well for businesses that need to exchange data in batches or at scheduled intervals. It also helps prevent security breaches by encrypting authentication information and requiring passwords.
Secure Way to Transfer Files
As companies migrate to digital business, transferring data between systems is critical. However, businesses must ensure that their information is secure in transit. SFTP is an easy-to-use file transfer protocol that offers superior security features to protect sensitive information from hackers and other cybercriminals.
SFTP encrypts data to prevent unauthorized access and ensures that sensitive information stays private during transmission. It also supports password and public key authentication to authenticate users, and it uses a single port to connect a client and server, making it less likely to trigger firewall issues. Moreover, it is packet-based rather than text-based and requires fewer CPU resources.
Recent data breaches have illustrated the dangers of insecure file transfer methods. For instance, a leading financial institution experienced reputational damage and financial losses after a hacker intercepted confidential customer data in transit. Although rare, these incidents emphasize the importance of secure file transfer protocols.
SFTP is an ideal solution for businesses that need to transfer large files over the internet or between different locations. It encrypts data to keep it safe from hackers and other third parties, and it can be used with virtual private network (VPN) connections to create a secure tunnel for the transmission of files. It is also an excellent choice for businesses that must comply with data protection laws such as GDPR and HIPAA.
More Dynamic Way to Exchange Data
The SFTP vs. API methods offer businesses valuable solutions, but which best depends on business needs and technical capabilities. SFTP is better suited for transferring large flat files at scheduled intervals, while APIs are more effective for real-time data exchange and complex system integrations. Choosing the right integration method can significantly impact business operations and growth.
Using an SFTP server to transfer data requires human intervention, which introduces the risk of error that can disrupt systems. Moreover, large files constantly need to be downloaded, updated, and re-uploaded, which can save employees time and strain IT resources. Additionally, SFTP servers don’t have an inherent way to notify users of changes in the flat file system, so they must poll the server regularly to see if there are any new changes.
APIs are a more dynamic way to transfer data, as they enable software applications to interact with each other. Web pages can contain code written in programming languages like HTML or application generators. They can also provide an audit trail of who can access the system and when. This allows you to manage data more efficiently and securely and comply with regulatory standards.
More Effective for Batch Data Transfer
SFTP is more effective than APIs for transferring large flat files, as it offers superior security capabilities and minimizes human interaction. Using SSH data streams for encrypted communication creates a secure connection between the client and server. It also allows businesses to choose between various authentication methods, including passwords and public key authentication. Additionally, SFTP uses a single port to connect the client and server, making it less likely to trigger firewall issues.
Additionally, a wide range of commands that can be used to transfer files and directories are supported. For example, SFTP can show the present working directory on the remote host, rename a file or directory, and delete a remote directory. It can also perform tasks without popping out to the shell prompt if you combine a command with the “!” sign. By using this method, you can save time and effort and avoid having to wait for the remote host to respond.
While SFTP is a simple and straightforward integration method, it’s unsuitable for real-time data exchange. As recent data breach incidents have shown, protecting the integrity of your company’s critical information is crucial during transfer. Otherwise, hackers can intercept sensitive data in transit and cause significant damage to a business’s reputation.
More Effective For Real-Time Data Exchange
Regarding real-time data exchange, APIs are better equipped than SFTP. Unlike SFTP, APIs are built to handle moment-to-moment interactions between different software systems and dashboards. This means they can transfer data in bulk and quickly respond to requests. SFTP, on the other hand, is a flat-file integration system that relies on manual data entry and must be polled regularly for updates. This can lead to errors and disruptions in workflow.
Furthermore, SFTP doesn’t have an easy way to notify clients of changes in file-system files. This can be a problem for companies that need to update their software applications promptly. Fortunately, with managed cloud storage solutions, you can set up webhook notifications to instantly send updates to your client applications.
Both SFTP and API are great options for data transfer, but choosing the right one depends on your specific business needs and resources. SFTP is an effective solution for batch file transfers, but APIs are more suitable for real-time data exchange and connecting to dynamic systems. The best choice for your business will depend on your team size, resources, technical capabilities, and use cases.
