6 Tips for Choosing a Business SFTP Provider

When choosing a business SFTP provider, there are a few must-haves that should guide your decision: rock-solid security, comprehensive logging and analytics, reliable backups, and a disaster recovery plan you can count on. These aren’t just features—they’re lifelines that protect your data, ensure compliance, and keep your business running smoothly.

In this blog, we’ll break down the critical options to prioritize, like how the right SFTP provider can help you stay ahead of compliance requirements (think HIPAA and PCI DSS), safeguard against data breaches, and maintain operational continuity even in the face of unexpected disruptions. Let’s dive in and make sure your business SFTP provider checks all the right boxes.

Business SFTP Provider Options to Look For

1. Focus on Security Or You Will Definitely Come to Regret It

Let’s not sugarcoat it: when it comes to choosing an SFTP provider, security is everything. If your business operates in industries like healthcare (HIPAA), Aerospace and Defense (FCI, CUI, CTI), or handles sensitive payment data (PCI DSS), you can’t afford to play fast and loose with compliance.

Consider this: a 2024 study found that 83% of organizations experienced a data breach due to third-party vulnerabilities, and the average cost of a breach soared to $4.45 million. That’s not just a headline — it’s your bottom line at stake.

Your SFTP provider should offer robust security controls that keep your data locked down, even when it’s not technically “in your hands.” Look for features like encryption in transit and at rest, multi-factor authentication, and compliance certifications that prove they can walk the talk. Otherwise, you’re leaving the door wide open—and the consequences of that door swinging open could be catastrophic.

2. Go Beyond "Standard" Security Features

You should also make sure that any SFTP provider you choose to work with allows you to go "above and beyond" standard security features, taking things to the next level and making sure you stay protected at all times. At-rest encryption is an important one in this regard - it helps make sure your data is protected while it is sitting on a server or hard drive, not just when it is being transferred.

Being able to enforce the use of transfer encryption on your end users is also paramount. Some FTP providers may leave both unencrypted and encrypted protocols open at all time, thereby letting your end users make their own decisions. Leaving the choice to the end user is definitely against most industry regulations such as HIPAA.

Protecting your SFTP site from hackers may seem like it should be a standard practice among SFTP providers, but I can tell you point blank that it is not. Make sure your data is protected by more than just encrypted transport and encryption at rest. Multiple firewalls and security traps should also be in place.

3. High Availability is Key

High availability means that your SFTP provider has put a plan in place to guarantee that you will have access to your data at all times - even if something goes wrong. If a server goes down, traffic is automatically redirected to a second one, meaning that you probably won't even realize something happened at all. SFTP providers built on public clouds do not have this feature.

4. Customization

An SFTP provider shouldn't try to force you to change your workflow to adapt to the service it offers - it should always allow for a deep level of customization to bring you the features you need in the way that you need them. Look for things like custom user interfaces, specific access controls and more to make sure you're picking the right provider.

5. Logs and Analytics

Logs and analytics might not be the flashiest part of an SFTP solution, but trust me—they’re non-negotiable. The right provider should give you detailed reports on traffic: who’s accessing your files, where they’re coming from, and what they’re doing. It’s like having a security camera for your data.

And here’s the kicker: without robust historical analytics, you’re flying blind when it comes to spotting suspicious activity. A report from the Ponemon Institute found that 56% of data breaches go undetected for weeks or months, often because companies don’t have the tools to recognize the warning signs.

Make sure your SFTP provider offers perpetual logging, so you can trace every action down to the smallest detail. Not only is it critical for catching red flags early, but it’s also a box you must check for most industry compliance standards. It’s simple: without strong logs, you’re leaving your data—and your compliance status—vulnerable.

6. Backups and Disaster Recovery

According to FEMA, 40-60% of small businesses never reopen after a major data loss or disaster. Even if they do, 90% will close within a year if they can’t regain full operational capabilities in a timely manner. That’s why having a provider with a strong disaster recovery plan isn’t just a “nice-to-have.”

The SFTP provider you choose should offer daily backups of all your critical information, stored securely offsite. And it’s not just about ticking a box—it’s about ensuring your data is protected no matter what.

For example, Sharetru goes above and beyond by keeping daily backups for 30 days, giving you peace of mind that your data is safe and recoverable even weeks after an incident. On top of that, we have a disaster recovery facility on warm standby, which means we’re ready to spring into action with minimal downtime if something catastrophic happens.

And don’t overlook the recovery plan. Your provider should have a detailed roadmap, including a clearly defined recovery time objective (RTO). This tells you exactly how quickly they’ll have you back up and running, without skipping a beat—or losing a single byte of data. Without this level of preparedness, you’re leaving your business exposed to unnecessary risks.