Businesses that need to transfer large amounts of data between systems face scalability, security, and speed challenges. Many companies rely on SFTP to do this, which has its merits.
However, using an API instead of a standard file server can be more efficient if real-time data is required. This article will explore how APIs can offer significant benefits over SFTP.
Security
Regarding transferring sensitive data between platforms, security is top of mind. APIs and SFTP offer strong security capabilities, but which suits your company? Ultimately, it depends on your needs and technical capabilities.
SFTP offers superior security features, including machine-readable directory listings and encrypted communication that prevents unauthorized third parties from viewing your flat file content. This level of security makes SFTP ideal for transferring and updating critical information like employee records or other susceptible data.
In comparison, most APIs work on a record-by-record basis, which can cause issues when integrating with a system requiring bulk real-time updates. This type of integration typically requires the client to iterate over each item and make an API call for each record, which can be time-consuming and creates more opportunities for error.
As a result, using an SFTP site to connect with your ERP or other platform can be a more effective and cost-efficient solution than APIs in some cases. However, opting for an API may be more practical if your company frequently requires uploading and downloading large volumes of data in bulk. In these situations, a sync-based API design is likely required to ensure that your data transfers occur immediately rather than at some later point in time.
Scalability
If your company relies on exchanging large volumes of data at regular intervals, it is more effective in SFTP vs API. The problem is that while APIs are excellent at transferring small or moderate volumes of data, they’re not designed for large-volume uploads. As a result, it’s not uncommon for unexpected issues to arise that can have a significant impact on your business operations and bottom line. These can include skyrocketing cloud costs during peak periods, slowing IT systems, or losing the ability to upload files.
In contrast, SFTP allows large file transfers to be processed automatically with little human interaction. This reduces employees’ time downloading, updating, and re-uploading data files and helps avoid errors that can disrupt workflows. Moreover, SFTP can support a variety of file formats so that your company has greater flexibility in how it shares information with its partners.
Additionally, SFTP can provide you with real-time information about changes that have occurred to your data in an easily digestible format. APIs, on the other hand, can take a while to refresh and update. This is because most APIs work on a record-by-record basis and don’t offer the concept of an atomic transaction. If you want to be able to access live and dynamic information about your data, then API is probably a better choice for your needs.
Flexibility
APIs are flexible tools that enable different software applications to interact with each other. As a result, they offer more flexibility than SFTP. However, this flexibility comes at a price, as APIs require significant development and maintenance time.
As a result, some companies choose to use SFTP as a more cost-effective solution to their data transfer needs. This approach is often used when businesses import data from legacy or on-premise systems or have limited IT resources. SFTP can also help transfer large files when it is essential to keep the data intact.
The downside to SFTP is that it does not operate in real-time, meaning that the flat file may need to be updated as soon as it is uploaded. This can lead to errors and frustrations for teams that rely on data from SFTP, significantly when those files are updated frequently. However, a cloud-native SFTP solution can solve this issue by providing webhook notifications that notify custom apps when files are updated.
Timeliness
The SFTP integration method works with flat files that are transferred one at a time from the source system to the destination. These files can be CSV, XML, JSON, simple text, or any assortment of bytes that fit an agreed-upon format. In addition to the actual file content, a set of headers, known as media types, indicate the nature and format of the data. This allows APIs to handle the transfer and convert it into usable information.
However, this approach can be inefficient, particularly when transferring high volumes of data or when the data needs to be processed in real-time. For example, a small error in an EDI file can throw off the entire batch of transactions. This can be costly if the incorrect data is sent to other trading partners.
With the emergence of new technologies, the methods for transferring data are constantly evolving. Many organizations are moving from a flat file-based integration to an application programming interface (API) or a connector.
The right method largely depends on your business’s needs and technical capabilities. Ultimately, both offer valuable solutions for your B2B file transfer needs. For instance, SFTP sites allow you to manage flat file transfers without the need for a software connection, and they can be used to connect with legacy systems that don’t support an API.
