Do you need audited access controls, built-in logs, automation hooks, and predictable uptime without running infrastructure? Well, a managed SFTP service might be the answer for you.
If you need OS-level control, custom network architecture, or you have to run SFTP inside an existing private environment, self-hosted can make sense, but you own (in pain and money) patching, monitoring, and incident response.
Let's lay into this comparison.
What this post covers:
- Security controls beyond encryption in transit.
- Real operating cost, not just server cost.
- Automation and integration options.
- Scaling, availability, and recovery.
Before the fierce battle begins, let’s introduce the two opponents and what this fight is all about.
As mentioned in previous articles on our blog, SFTP is a file transfer protocol used to store and share files securely (you can read more about it here). If you’d like to use SFTP, there are essentially two options: you can either embark on a self-setup path, or you can use a fully managed SFTP or SFTP as a service.
While it is possible to set up your own SFTP, should you really do so? Managing and maintaining your own SFTP could turn out to be a weary task, but is utilizing a managed SFTP service worth the price?
This leads us to our two opponents in tonight's match: In the blue corner, with vast experience and an increasing number of customers is the fully managed SFTP as a service. In the red corner is the DIY method with tons of self-confidence.
If you're already decided and just reading this for reassurance: Check out our post on Migrating On-Prem SFTP To The Cloud!
Round 1 - Security
In boxing, the defensive techniques are just as important as the attacking techniques and in the world of business, protecting your data is an indispensable defense.
The SFTP protocol ensures that all data and communication between the client and the server are encrypted over the wire - a benefit provided by both fully managed services and a DIY.
It seems as though round one is about to end with a tie, but that’d be too easy! Fully managed SFTP has a surprise up its sleeve; there’s more than just communication encryption to data security. A good managed SFTP service also offers:
- Network access controls: Restrict who can reach the service using IP allowlists and closed-by-default inbound access.
- Authentication policy: Prefer SSH keys, limit password access, rotate keys, and keep SSH settings hardened.
- Admin access controls: Require MFA for the admin portal and keep roles tight.
- Encryption at rest: Encrypt stored data and be clear about how keys are managed.
- Audit logging: Record logins, uploads, downloads, deletions, and permission changes with identity and timestamps.
- Log export and retention: Export logs and keep them long enough for audits and investigations. Learn all about SFTP and compliance.
- Monitoring and alerts: Flag repeated auth failures, new source IPs, and unusual transfer volume.
In 2026, encryption in transit is the baseline. The real fight is everything around it: who gets access, how keys are handled, how quickly patches land, and whether your logs hold up when someone asks you to prove what happened. Of course, you can manage this DIY, but with great difficulty and great cost.
Well folks, that settles it, the first round goes to the fully managed SFTP with an incredible suckerpunch.
Round 2 - Business cost reduction
After a very tense first round, it’s time to give it another go, and this one is all about TCO, or total cost of ownership. In 2026, TCO is mostly operating cost. The infrastructure bill is visible, the maintenance bill is the one that sneaks up behind you. Think about:
- Engineering time: Build, harden, document, and test.
- Patching and CVE response: Keep up with security fixes without breaking workflows.
- Monitoring and on-call: Alerts, incident response, and after-hours coverage.
- Backups and restore drills: Backups that restore, plus periodic tests.
- Audit evidence: Access reviews, log retention, and change tracking you can produce on demand.
Choosing to use a self-hosted setup might sound alluring, for reasons unknown, but it might just end up draining your valuable time and money. Even if you are an expert, building an SFTP server that matches up to the features of a fully managed SFTP’s is a hard task. Add setup costs (hardware or cloud infrastructure) to the effort, cost of ongoing operations and maintenance and what do you get?
A self-hosted setup can look cheaper at first glance, but it has a habit of charging you in both time, and money!
Using a managed service sets you up with the whole package, handled by a group of people whose sole purpose in life is to provide thousands of their customers with the best SFTP experience: a team that runs this all day, patching, monitoring, and keeping the fundamentals tight so you are not doing it between other priorities.
In reality, hosted services manage to lower the cost of infrastructure and maintenance through the implementation of automation and resource sharing, so their customers don’t have to keep digging into their pockets.
And the score is 2-0 in favor of the fully managed SFTP.
Round 3 - Automation
Some managed SFTP services, such as SFTP To Go, enable automation via APIs and webhook notifications. These features allow you to seamlessly integrate your SFTP storage with your apps and automate processes that would otherwise be performed manually, such as managing users or checking if files were uploaded to the SFTP server.
DIY can automate too, but you end up building the glue: event detection, retries, credential handling, and all the edge cases. Consider what it takes to design, set up and maintain:
- Provisioning automation: Create and disable users, rotate keys, update folder permissions.
- Workflow automation: Trigger jobs on upload, notify on delivery, validate checksums, enforce naming rules.
- Evidence automation: Export logs and generate periodic access and activity reports.
Blow after blow, the fully managed SFTP is taking the lead.
Round 4 - Control and flexibility
Entering the fourth round and despite its defeat, DIY SFTP is looking quite confident.
If you choose the DIY path, it is true that you have 100% control. You can control the host OS, network placement, and how SFTP fits into the rest of your environment.
However, being on your own leaves a greater space for mistakes. An SFTP that is sufficiently managed ensures that everything works smoothly and efficiently by following the old saying “Keep it simple, stupid”. Keep the surface area smaller and the setup easier to review and audit. TBH, there really is no need for too much customization around SFTP storage.
DIY SFTP finally wins a round, how unexpected!
Round 5 - Scalability
Business needs regarding file sharing can change rapidly and a solution that scales up (or down) is required; not just around storage and disk space, but also to address the aspect of the number of concurrent connections.
Remember, scaling is not only disk space. It is concurrent user sessions, throughput under load, and how quickly you can respond when usage spikes.
If you self-host on fixed infrastructure, you are constrained by that capacity. If you self-host in the cloud, you can scale, but you still have to design for concurrency, throughput, and high availability.
A fully managed SFTP service can easily adjust to the inevitable evolution of these needs. More specifically, in SFTP To Go, Amazon S3 is used for storage and it is infinitely scalable.
What a comeback! Fully Managed SFTP finishes this round with a beautifully executed right hook.
Round 6 - Access your files anywhere
SFTP gives you remote access by design, so both contenders can show up in any corner of the world as long as the network path is open and the credentials work. At first glance, this looks like a clean tie.
But the difference is not whether remote access is possible. It is how safely and conveniently you can offer it to humans and systems without turning “anywhere” into “everywhere.”
With DIY, remote access usually means SFTP clients and direct server reachability, plus whatever you build around it for credential distribution, key rotation, IP allowlists, and user onboarding. It works, but every extra access path, user, and partner tends to come with more setup, more exceptions, and more chances for drift.
A managed service usually adds a second lane alongside SFTP: a secure web portal for browser-based access and day-to-day administration without SSHing into a box.
It also tends to bring the practical “people features” that DIY rarely ships with by default, like share links for sending a specific file (or a controlled set of files) to someone who does not need full credentials, link expiry so shares do not linger forever, and an audit trail that shows who shared what and when.
If you support external partners, non-technical users, or one-off deliveries, managed features like share links, portal access, and controlled permissions change the shape of the work. You still keep SFTP for automation, but you stop treating every new recipient like they need a permanent account and a key exchange.
So this round is not a tie. Both can reach “anywhere,” but managed tends to win on safe, controlled access for real-world sharing, especially once the user list and partner list start growing.
Round 7 - Business continuity and disaster recovery
With the gloves off, Fully Managed SFTP is looking determined to gain the upper hand and finish the fight.
A disaster recovery strategy is imperative for ensuring a company’s business continuity during an uncontrollable event, such as a cyberattack or a power outage. When exchanging critical business data, you can’t afford any delays caused by server downtime or silly mishaps, such as someone accidentally deleting an important file. A properly managed SFTP service has high availability and disaster recovery built into its architecture.
SFTP To Go’s annual uptime is 99.95%, meaning that throughout the entire year, some service disruption occurred for less than 5 hours.
Managed SFTP vs DIY SFTP - who's the winner?
The incredible battle has come to a spectacular end!
The Undisputed champion, with 6 winning rounds is: The Fully Managed SFTP, Hosted SFTP, the SFTP as a Service!
Check out our post on Migrating On-Prem SFTP To The Cloud!
If enhancing security, increasing efficiency improving automation, and ensuring business continuity are factors that you are looking for, fully managed SFTP is the clear winner.
FAQ
What is the difference between managed SFTP and DIY SFTP?
Managed SFTP is a hosted SFTP service where the provider runs the infrastructure, patching, monitoring, and baseline security controls, while you manage users, folders, and workflows. DIY SFTP is a self-hosted SFTP server you run yourself, so you own setup, hardening, updates, logging, monitoring, backups, and incident response.
Is managed SFTP more secure than a self-hosted SFTP server?
It can be, mainly because managed SFTP typically ships with stronger defaults and ongoing maintenance like patching, hardened SSH configuration, audit logging, and monitoring. A self-hosted SFTP server can be just as secure, but only if you consistently implement and maintain those controls over time.
Does SFTP include encryption at rest?
No. SFTP encrypts data in transit over SSH. Encryption at rest depends on how storage is configured on the server or the managed service, including how encryption keys are managed and who can access them.
Can I automate workflows with a DIY SFTP server?
Yes, but you usually have to build the automation layer yourself, such as polling, file watchers, retries, and secure credential handling. Managed SFTP services often provide APIs and webhook notifications so automation is easier to standardize and less fragile.
What are share links and when are they better than SFTP credentials?
Share links are controlled, web-based links that let someone access a specific file or delivery without giving them full SFTP credentials. They are usually better for one-off transfers and external recipients because you can set expiry, limit exposure to a specific file or folder, and keep a clear audit trail of sharing activity.
When should I choose DIY SFTP instead of managed SFTP?
DIY SFTP is usually the better fit when you must host inside a specific private network boundary, you need deep OS or network customization, or you already have strong on-call coverage for patching, monitoring, backups, and incident response. Managed SFTP tends to fit better when you want secure defaults, easier audits, and less operational overhead.