MFTaaS Explained: Cloud vs. On-Premises

As we navigate through 2025, the landscape of cloud-based managed file transfer (MFT) continues to evolve, influenced by emerging trends in cloud computing. Managed file transfer as a service (MFTaaS) is a cloud-based solution that provides organizations with secure, reliable and scalable file transfer capabilities without the need for on-premises infrastructure. MFTaaS has become an essential solution for organizations seeking to streamline their file transfer processes, improve security and reduce the complexity of managing these operations in-house.

This article compares MFTaaS with traditional on-premises managed file transfer solutions and explores the key trends shaping the future of cloud-based MFT. Keep in mind that specific capabilities may vary based on your service level agreement (SLA) and the chosen cloud provider. So, let’s jump right in!

Differences Between Cloud versus On-Premises MFT

The following table focuses on the differences between cloud and in-house / homegrown on-premises MFT solutions, highlighting responsibilities of vendor versus organization. Read our other blog for a detailed comparison of Thru MFTaaS versus Thru deployed in a customer’s private cloud »

	Cloud: MFT Vendor Responsibilities	On-Premises: Organization Responsibilities
Deployment	Production-ready, hosting and deployment in cloud. Multiple regional data centers may be available.	Procure infrastructure, such as hardware/servers, software and network. Set up hosting and deployment on infrastructure.
Updates / Upgrades	Seamless software updates automatically and continuously pushed. Little or no downtime for updates or upgrades.	At discretion of organization. Software updates and downtime may require scheduling.
Scaling	Guaranteed capacity, which is managed via cloud infrastructure scaling. Subscription to different tier may be required.	Find and resolve bottlenecks to speed up file transfers. Procure and set up additional servers as capacity increases.
Security	All aspects of security, including user access and authentication, antivirus scanning, anti-malware measures, fault tolerance, high availability and disaster recovery.	All aspects of security, including user access and authentication, antivirus scanning, anti-malware measures, fault tolerance, high availability and disaster recovery.
Compliance	Shared responsibility for data: Vendor is responsible for network / infrastructure security and file transfer security. Organization is responsible for files in its possession: awaiting transfer and once received by transfer.	Organization is responsible for compliance of data security, from end-to-end: Network and infrastructure File transfers Files in storage
	Note: If using a third-party solution for any aspect of file transfer, the organization must do due diligence to confirm that the vendor is compliant with applicable regulations and requirements. If found not compliant, the organization is still held responsible for breaking compliance. Note: Consult with legal and compliance experts who specialize in your industry to ensure that your data transfer practices are in full compliance with applicable regulations.
Control	Less control over configuration — i.e., you may not be able to pick which cloud the MFT solution is deployed in. Customization depends on current feature availability and vendor’s roadmap for future capabilities.	More control over configuration of infrastructure. Customization depends on availability and skills/knowledge of organization’s IT team Trust own team to configure security properly.
Training and Support	SLA determines resources and availability.	All aspects of training and support of infrastructure and MFT software.
Cost	One-time, lower capital expense for deployment. Pay for what you use, which leads to predictable, usage-based operational costs. Benefit from scale: The more you use, the less per unit you pay.	One-time, higher capital expense for setup, development and deployment. Lower periodic operating expense. Inefficient to scale: Costs consume a large portion of the IT budget even in the system’s lowest use periods. Significant infrastructure costs: Additional server deployment and patches Software patches Data security Backups and high availability Server maintenance and energy footprint System administrators and support staff
	Learn more about MFT pricing models and costs » Learn more about comparing the total cost of ownership (TCO) in MFTaaS products »
Time to Value	Short: Minimal time for vendor to set up an MFT instance within its cloud. Once deployed, organization configures and manages workflows.	Long: Organization needs to design the solution, determine how it fits into the current infrastructure and set up software.

Emerging Trends in Cloud MFTaaS

As cloud computing continues to evolve and reshape the technology landscape, the following three trends are significantly impacting the development and capabilities of MFTaaS:

1. Edge Computing Integration

The integration of edge computing with cloud services is gaining momentum, enabling data processing closer to the source and reducing latency. For MFTaaS, this means faster and more efficient file transfers, particularly for organizations operating in industries where real-time data processing is critical. By combining edge computing with cloud-based MFT solutions, businesses can achieve a balance between speed and scalability. Learn about edge computing for file transfers »

2. Enhanced Security Measures

With the increasing complexity of cyber threats, MFTaaS providers are implementing more robust security measures. This includes adopting zero-trust architectures, which require continuous verification of users and devices and integrating advanced encryption protocols to protect data both in transit and at rest. These enhancements ensure that sensitive information remains secure, even as file transfer processes become more complex and distributed. Learn about zero trust model for file transfers »

3. Multi-Cloud and Hybrid Cloud Adoption

Organizations are increasingly adopting multi-cloud and hybrid cloud strategies to enhance flexibility, avoid vendor lock-in and optimize costs. This approach allows businesses to distribute workloads across various cloud environments, leveraging the specific strengths of each platform. MFTaaS providers are responding by ensuring their solutions are compatible with multiple cloud platforms, facilitating seamless integration and data transfer across diverse environments. Learn about Thru’s deployment options »

These key trends not only enhance the efficiency, security and scalability of MFTaaS solutions but also create new opportunities for businesses to leverage cloud technologies in more dynamic and integrated ways.

Case Study: Enhancing File Transfer Processes in the Oil and Gas Industry with Thru’s MFTaaS

A leading oil and gas exploration company with over 1,200 employees operates across North America and globally. This oil and gas company generates and digests massive amounts of data to report processes such as seismic activity, drilling activity and production rates. Faced with the need to modernize its file transfer system, the company sought a solution to replace outdated on-premises FTP servers, aiming to unify file exchange management, enhance user experience and automate workflows with numerous partners.

Challenges

• Scalability: Managing large volumes of data (up to 10TB daily per well) from diverse sources.
• Operational Efficiency: Streamlining complex file transfer processes to reduce manual intervention.
• Partner Integration: Simplifying the onboarding of multiple trading partners with varying technical capabilities.

Solution

The company implemented Thru’s MFTaaS integrated via its native connector with MuleSoft’s Anypoint Platform. This integration facilitated the creation of file transfer workflows that seamlessly connected with Mule flows, enhancing data processing capabilities by simplifying file transfer integrations with numerous internal systems such as SAP and Salesforce. Thru’s cloud-native platform offered real-time monitoring, centralized scheduling and simplified partner onboarding through a user-friendly web interface.

Results

By using Thru’s automated MFTaaS solution, a multibillion-dollar independent crude oil and natural gas development and exploration company transformed its file transfer operations, achieving greater agility, efficiency and collaboration in its global operations:

• Quickly scale file transfer capabilities to accommodate commercial dynamics, remote locations and new lines of business.
• Automate and extend MuleSoft flows with just a point-and-click.
• Reduce operational risk by monitoring all file activity in real-time.
• Centralize scheduling, tracking and control of all file exchanges to improve visibility and rapid issue resolution.
• Improve business agility and trading partner experience.

The numbers don’t lie: After integrating Thru to handle file transfers, the company saw a 10x reduction in operating expenses, a 480% increase in partner onboarding efficiency, and a 2.5x acceleration in the delivery of business-critical data. Read the full case study to learn more: