Group Logic Study Reveals Enterprises Struggling With File Transfers

October 27, 2008 in Networks and FTP (E)

[] Arlington, VA - Despite a host of problems that corporations are encountering with the transfer of digital files, most large enterprises have yet to adopt a comprehensive solution to address these issues, according to the results of a new study announced today by Group Logic, the leading provider of Managed File Transfer and Mac/Windows connectivity.

Although few respondents have implemented comprehensive Managed File Transfer (MFT) solutions, many indicate this may soon change. One in five of the companies surveyed said they plan to implement such a solution by the end of 2009.

The study, conducted in conjunction with eMedia USA, surveyed nearly 300 IT professionals across multiple industries. According to the findings, many of America's top corporations are regularly transferring high-value and data-intensive files across internal departments and external partner networks. Yet these same companies are facing significant challenges in managing the movement of these digital assets. The most pressing problems facing these professionals include:

* 59%: Slow transfer rates
* 42%: Inability to send large files and/or a need to baby-sit important transfers
* 25%: High burden of file transfer system management
* 23%: Use of file transfer servers for storage by users and a resulting lack of disk space
* 22%: Lack of security; users sending unencrypted files via the Internet; file transfers that do not comply with corporate security
* 19%: Lack of audit trails and/or inability to track down transfers
* 19%: User/customer dissatisfaction

"This survey clearly shows that corporations are feeling the pain of digital file transfer overload. Too many organizations are encountering major challenges impacting corporate governance, security, productivity and business process management," said T. Reid Lewis, President and CEO of Group Logic. "The good news is many of these organizations now recognize they must take action and implement a comprehensive system for Managed File Transfer (MFT)."

Analyst firm, Gartner estimates that the market for MFT is approximately $450 million a year and growing at a rate of 21% to 26% year over year1.

"The market demand for MFT is growing," said L. Frank Kenney, research director with Gartner. "Enterprises today face a number of issues that impact the file transfer process, and will greatly benefit from solutions that meet the needs of today's complex enterprise organizations."

Many enterprises reported a reliance on rudimentary and poorly managed processes. The top methods of file transfer included: 75% indicated they use e-mail, 59% percent indicated FTP and 45% that indicated they burn data to CDs or DVDs and send via courier/overnight delivery service.

"Corporations clearly must address the challenges of file transfer overload with enterprise-class solutions that reduce risk and improve customer and partner interaction," added Lewis. "Comprehensive MFT solutions from companies like Group Logic can transform digital file transfer into a strategic business process that safeguards files of large size and scale moving across an enterprise's entire supply chain and partner networks worldwide."

1 Gartner, "Magic Quadrant for Managed File Transfer," by L. Frank Kenney and James Lennard, June 23, 2008.

Group Logic is the leading provider of network software solutions that enable customers to gain strategic value, increase productivity and leverage existing infrastructure investments through enterprise file transfer and Mac/Windows connectivity solutions. With nearly 20 years of unmatched experience, Group Logic's emphasis on customer success is the very core of its business. More than 4,000 customers trust Group Logic every day to move and share their files around the world.