API vs SFTP

Understanding the difference

API is often seen as the preferred option for real-time system integration, while SFTP provides an effective alternative for massive data transfers. This is particularly useful when working with complex data formats. Your company's specific needs will determine which integration method is best for you.

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Key differences between API and SFTP:

Aspect API SFTP

Synchronicity

Real-time, synchronous communication ideal for small, frequent data updates

Asynchronous transfer suited for scheduled, bulk data uploads

Data volume

Best for low to medium-sized data volume

Handles large batches of data efficiently

Data formatting

Designed for standardised systems and data formats

Flexible with custom formats, ideal for heavily customised systems

Security implementation

Requires advanced technical capabilities for secure deployment

Offers strong out-of-the-box security options


Examples of an API and SFTP

For instance, employee data must be updated across all platforms.

An API works best for real-time synchronisation when the data is subject to frequent changes and needs to be reflected promptly. For example, when granting access to internal tools. Read more about different API types here. 

However, if these updates occur only once a week or once a month, like during new hire onboarding, SFTP can handle the task effectively through scheduled file transfers. Explore more examples of SFTP here.

Benefits of API and SFTP

  • Customised integration - When used properly, these approaches address specific business needs.
  • Flexibility in operations - SFTP provides stability and simplicity, while APIs provide automation and speed.
  • Cost-effective scalability - While APIs perform well in real-time scaling scenarios, SFTP keeps costs low for large or infrequent transfers.
  • Secure data handling - Both systems protect sensitive data when properly used.

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