Where is the market for file transfer servers?

Many business processes involve file exchange. Bidding and proposal submission, legal documents, financial reports, data backup and restoration, supply chain integration, B2B collaboration, and multiple business transactions all require the movement of files. Although temporary file transfer can usually complete the work, there are actually some situations that require server-to-server file transfer.

Server-to-server file transfer is the automatic movement of data or files from one machine to another. In other words, this file transfer involves very little human intervention. Therefore, compared to file transfers with more human involvement, server-to-server file transfers are generally faster, more effective, more accurate, and less error-prone.

Server-to-server file transfers usually do not run on their own. Instead, it is usually implemented as part of a business process automation project. This requires system integration, where business, operations, or accounting systems are connected to a file transfer server. Since it is usually part of a business process automation project, the setup of a server-to-server file transfer system is usually more expensive than other file transfer implementations (that is, a server configured only for personnel-to-server file transfer). However, once the system is up and running, significant reductions in working hours, human error, paper consumption, delivery time and several indirect costs can be realized immediately.

So how do you know when to implement server-to-server file transfer?

1) Need to exchange data frequently

There may be no better reason to implement server-to-server file transfers than the company with which you often exchange data. Once you consider all the previously mentioned benefits (ie reduction of human error, delivery time, etc.) and combine it with the volume of transactions you have to make, you can easily prove that the investment in server-to-server file transfer is not just your board also your trading partner. The advanced managed file transfer server has functions precisely constructed for such scenarios. For example, these servers allow you to add trading partners and then assign them automatic file transfer tasks (called triggers).

2) Regular transactions

Manual, temporary file transfer is suitable for spontaneous, non-repetitive file-sharing activities. But for transactions that need to be performed over and over again-say daily, weekly, or monthly-then automating events is definitely a good idea. Automation can ensure that transaction documents and other time-sensitive deliverables are always delivered on time. This can be done by using triggers that automatically prompt the server to perform file transfers based on a preset schedule.

3) Transactions require higher speed, accuracy, and efficiency

Transactions involving business-critical data need to be conducted in a timely, effective, and highly accurate manner. Therefore, these types of transactions are not suitable for temporary file transfers, which are vulnerable to negligence, data entry errors, or even exposure to fraud. Computer-to-computer file transfer is more appropriate, and such risks are less likely to occur.

4) Require EDI

In order to avoid being overwhelmed by large amounts of daily data, many large companies dealing with multiple trading partners are forced to implement business process automation programs such as EDI (Electronic Data Interchange), which rely heavily on server-to-server exchanges. Then, these companies require their trading partners to implement a compatible EDI system before trading with them. Therefore, if you need to trade with large trading partners with such requirements, you may have no choice but to implement server-to-server file transfers. Usually, some of the transaction documents transmitted through EDI include purchase orders, invoices, advance shipping notices (ASN), bills of lading, and student transcripts.

5) Big company needs

Similarly, if you are a large company and have more and more trading partners, it is a good idea to implement an EDI system and require your trading partners to adopt it. In this way, you can more easily manage the various transactions that may occur.

6) Industry needs

Some industries are regulated by laws that require safe, standardized electronic transactions. For example, the HIPAA (Health Insurance Portability and Accountability Act) of the healthcare industry requires underwriting entities engaged in electronic transactions to comply with EDI rules and security rules.

These rules basically encourage the use of EDI and require those who implement secure file transfer standards. Hosted file transfer servers that support server-to-server file transfers already have many built-in security features that enable them to promote regulatory compliance.