Managed File

Transfer
Ultimate Buyer’s Guide
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Every day, organizations may exchange a considerable number amount of files

with multiple participants. Documents ranging from payment transactions to
purchase orders are sent to employees, remote staff, customers, and trading
partners. These transfers are an integral part of how each business runs.

Because of the sensitive information often contained in files, data transfers should
be protected. Documents, emails, and databases should be encrypted to limit the
risk associated with an attack, breach, or user error. Organizations need to consider
their network and IT capabilities to achieve a higher level of protection. And they
also need to meet the compliance requirements that apply to them, like HIPAA, PCI
DSS, and FISMA.

Is it possible to streamline hundreds or thousands of file transfers while still meeting

the needs of trading partners, ensuring regulation compliance, and preparing for
company audits? Yes.

Consider exploring a solution like secure managed file transfer that does all
these tasks—with the aim of making IT and business professionals’ lives easier by
centralizing the management and encryption of file transfers.

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Table of Contents
Getting Started Before You Buy
About this Guide 05 Read MFT Reviews 21

What is Managed File Transfer? 06 Request a Demo/Trial 22

Understand the Benefits 07 Study Your Resources 23

Pre-Search Considerations After the Sale

On-Premises or the Cloud 09 Connect with Other Users 25

Industry-Specific Requirements 10 Receive Product Training 26

Cybersecurity & Data Breach Defense 12

Key MFT Features 13

In-Depth Evaluation
Create a Requirements Checklist 15

List Your Compliance Needs 17

Determine Your Budget 18

Find the Solution’s ROI 19

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Getting Started

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Getting Started
About this Guide
Data is a major driver in today’s business world, and how a business manages
data and data security can drive the bottom line for better or worse. However,
finding the right solution for your business isn’t always easy. Many details go
into choosing the product that’ll work best for you: narrowing down your options,
researching their unique features, and evaluating them for potential success in
your environment are just a few.

This guide strives to help you make a more informed decision by providing you
with various buying considerations and explanations, including industry-and
compliance-specific concerns.

By the end, you’ll have a better grasp of what secure managed file transfer can do
for your organization. We’ve also included a helpful, printable checklist to use when
comparing solutions from different managed file transfer vendors.

Have questions? Contact us.

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Getting Started
What is Managed File
Transfer?
At a minimum, a managed file transfer (or MFT) solution is a product that
encompasses all aspects of inbound and outbound file transfers while using
industry-standard network protocols and encryption.

What does “managed” in managed file transfer mean? It refers to how the solution
can automate and transfer data across your network, systems, applications,
trading partners, and cloud environments from a single, central point of
administration.

An MFT solution can be used by organizations of all sizes for file transfer needs
ranging from a few dozen a week, to a few thousand a day or more. It can replace
old technology too, like legacy FTP solutions or time-consuming manual processes
like PC tools and legacy scripts, that are still being deployed in organizations. MFT
technology is an ideal solution for a business in need of a data management
system that can maximize security, compliance, productivity, and value.

MFT technology simplifies data management, providing businesses with the

advantage of operational visibility and control so any potential security or
efficiency risks can be identified and addressed. It can also provide a centralized
and secure system that empowers businesses with the security, visibility, efficiency,
and control to manage the flow of data—regardless of size, type, volume, or
workflow. When it comes to the compliant management of data, an MFT platform
makes things easier for what can often be a complex process. Yet, despite the wide
range of MFT products on the market today, the reality is that not all MFT products
are created equal.

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Getting Started
Understand the Benefits
Trends in the workplace are making managed file transfer solutions necessary. Employees are sharing a prolific amount of information
through their emails [and] only 47 percent of employees think their companies have policies [for file sharing] in place.

— Select and Implement a Managed File Transfer Solution Info-Tech Research Group Report

Many organizations struggle to fully protect the data shared by their employees,
Improve Your Transfers
customers, trading partners, and third-party vendors. Information can easily be
Simplify and automate a high volume of file transfers with workflows that are easy
sent to the wrong person, stored on the wrong server, or shared with a non-secured
to design and process without the use of other tools or programming.
application. With these concerns, IT teams are desperately looking for ways to
minimize the risks that accompany data exchange. Deploy on Multiple Platforms
An MFT solution can help do this by providing the following benefits: Implement your solution on-premises, in the cloud, or in a hybrid environment.
Or look for a hosted software-as-a-service (SaaS) solution wherever you need
Maintain Strong Cybersecurity Practices flexibility and scalability to match the growth of your business.
Rely on managed file transfer security settings, including detailed audit trails and
segmented groups for multiple security zones, to meet strict in-house policies. Better Visibility and Control
An MFT solution enables organizations to track data movement, giving you
Follow Encryption Protocols immediate visibility and control. Knowing where data is coming from, where it’s
Encrypt and compress your files in transit and at rest with several leading going, and who can access it at all times is essential to retain visibility, one of the
technologies for securing data, including Open PGP, AES, SSL, and SSH. biggest obstacles to handling data.

Meet Compliance Requirements Increase Operational Efficiency

Secure your data to comply with regulations like PCI DSS, FISMA, HIPAA/HITECH, Handle manual daily tasks and processes with ease with the data transfer
GBLA, SOX, and the GDPR. automation capabilities that an MFT solution provides. Productivity can remain
steady and reliable, helping to eliminate employee-based limitations such as
Reduce Your Costs vacations, turnover, or human error.
Eliminate the need for custom scripts and programs, single-function tools, and
manual processes, all of which can be costly to maintain.

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Pre-Search Considerations

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PRE-SEARCH CONSIDERATIONS
On-Premises or the Cloud
In Cybersecurity Insiders’ 2021 Cloud Security Report, it was found that 71 percent of organizations are pursuing either a hybrid or multi-cloud strategy. With only 27 percent of
companies relying on a single cloud deployment and 76 percent of organizations using two or more cloud providers, the cloud is growing in popularity at a rapid rate.

Although they can offer more flexibility in how data is used, managed, and protected, multi-cloud environments often add complexities and security challenges that must be
addressed effectively. As a result, MFT vendors work hard to make sure organizations have the flexibility they need to meet their business requirements. This includes the ability
to work in multiple environments, from on-premises to the cloud, to a hosted (SaaS) environment, or to somewhere in between (hybrid). Some even offer cloud versions of the
MFT solution alongside vendor-hosted environments.

Determine which environment you plan to integrate your MFT solution in before you start your search. Don’t be afraid to ask questions about how a solution works in your
chosen environment and check how difficult it may be to migrate if you start on-premises and later want to move to the cloud — or vice versa.

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PRE-SEARCH CONSIDERATIONS
Industry-Specific Requirements
Which industry are you in? Keeping industry-specific needs in mind when
Higher Education
evaluating MFT solutions will make the decision processes much easier, as you’ll be
Post-secondary schools must protect confidential student information, both
able to vet what will and won’t work right away. To get you started, here are a few
university-wide and in the exchange of data with authorized third parties. Managed
important requirements to consider in the following industries:
file transfer can help schools achieve compliance with FERPA, PCI DSS, GLBA, FISMA,
and HIPAA, as well as protect student data through encryption, detailed audit logs,
Healthcare
centralized user administration, and enforced password policies.
Healthcare organizations need to secure their ePHI data and ensure their files
are easily transferred and accessible to other locations and departments. The
Insurance
MFT solutions you evaluate should segment users, provide strong authentication
The insurance industry must meet onerous compliance burdens and find a way
methods, offer detailed auditing and reporting for worldwide data protection
to simplify and automate the data they exchange with business partners. A good
regulations (like HIPAA in the U.S., the EU’s Directive of Data Protection, and
MFT solution will help insurance companies meet SOX, GLBA, HIPAA, and HITECH
Canada’s PIPEDA), and coordinate patient data with outside physicians and
requirements; secure data in compliance with the Dodd-Frank Act; maintain the
remote offices.
integrity of files in motion for OIG, Medicare, and Medicaid; transfer data in bulk for
ETL and migrations; and more.
Logistics
Distribution and warehouse organizations must be able to automate the exchange
Banking and Finance
of orders and EDI documents with their trading partners. Managed file transfer can
Banks and financial institutions understand the importance of protecting sensitive
help ease this burden by securing data for SOX 404 and 409, maintaining records
data. The right MFT solution will help you achieve PCI DSS and GLBA compliance;
for 21 CFR Part 1.236–1.368, meeting FTC regulations for tax filings and inventory
provide tracking, auditing, and delivery requirements for Basel III; secure private
control, generating audit trails, and controlling access to sensitive documents.
data for SOX 404 and 409; and secure data in transit and at rest for the Dodd-
Frank Act.

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PRE-SEARCH CONSIDERATIONS
Industry-Specific Requirements
Manufacturing Retail
Product manufacturing frequently requires the secure Escalating instances of data theft emphasizes the need for
exchange of data files between departments, business retail locations to safeguard customers’ personal data and
partners, and (sometimes) government entities. Any MFT credit card information. Managed file transfer can help retail
solution you consider should secure data for SOX 404 and companies comply with PCI DSS, SOX, and FTC regulations,
409, maintain records for 21 CFR Part 1.236-1.368, meet FTC implement internal policies that conform to the Non-Bank
regulations for tax filings and inventory control, generate Financial Services Rule, and control access to documents with
audit trails, and control access to sensitive documents. enterprise-level security settings (like user and group roles).

Public Sector
Government agencies face significant regulations and
security policies. In addition to meeting compliance
requirements for FIPS 140-2, SOX, GLBA, PCI DSS, and HIPAA,
organizations in the public sector are also accountable for
FISMA, a mandate that requires them to create, document,
and implement a plan to ensure their information systems
are secure. In addition, solutions must be secured from
the Product Compliant List of the National Information
Assurance Partnership’s Common Criteria and Evaluation
and Validation Scheme (NIAP-CCEVS). The right MFT
solution can help with all of this—and more.

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PRE-SEARCH CONSIDERATIONS
Cybersecurity &
Data Breach Defense
With data breaches rising at an alarming rate across many industries, IT teams are
focused on implementing strong cybersecurity practices in their organizations and
looking at their third-party applications, software, and networks closer than ever
and ensuring they incorporate proper and stringent encryption practices.

When evaluating managed file transfer solutions, consider what vendors offer for
security and data breach defense. Make sure they’re putting security first and ask how
they’ll work with you to protect the sensitive information you share on a daily basis.

Here are a few questions to get you started:

• What types of encryption standards are supported?
• Does it use FIPS 140-2 validated encryption ciphers?
• Can I authenticate users against LDAP or Active Directory?
• Can I segment my organization into multiple security zones?
• Can I define various permissions for separation of duties?
• Can I perform multi-factor authentication?
• Can I restrict users to specific directories and subfolders?
• Does this solution offer notifications (email and/or SMS) for login failures,
rejected files, and other irregular activity?
• Does this solution track all user events and file activity?
• Can I generate management reports of trading partner activity?
• Will the solution block brute-force and DoS attacks?
• Does the solution meet the security standards required for Common Criteria
certification?

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PRE-SEARCH CONSIDERATIONS
Key MFT Features
There are several MFT solutions on the market. How should you determine which is
Data Loss Prevention Integration
best for your organization? When exploring your options, here are some features to
Enhance your MFT infrastructure by integrating a Data Loss Prevention (DLP)
look for:
solution. With DLP, you can detect, inspect, and secure critical data across email,
web, and the cloud. You can also minimize your risk of accidental data loss, data
Auditing and Reporting
exfiltration, and cyberattacks — plus reduce the impact on day-to-day operations.
Audit logs help you monitor the activity in your environment for all movement of
files. Reporting metrics provide statistical details, graphs, and charts of this activity.
Extensive Security Controls
Enterprise-level security will help you meet stringent in-house policies and
Cloud Support
compliance requirements. Make sure the MFT solution you evaluate comes with
Cloud deployment gives you the flexibility to automate and secure file transfers in
features that safeguard your data and restrict users to only the areas of the
the cloud, no matter where those files reside. Look for a solution that scales with
product they need.
your organization and works with popular cloud computing platforms like Amazon
Web Services and Microsoft Azure.
Secure Email Capabilities
Some MFT solutions also offer built-in integrations for popular web and cloud A solution that offers a secure way to send email will help ensure the security
applications like Salesforce, SharePoint, and Microsoft Dynamics 365. These of your messages and files by turning them into encrypted packages. These
integrations make it easy to move files to and from the services you use every day. packages can then be downloaded through a protected HTTPS connection.

Remote Agents Flexible Web Client

Remote agents can automate file transfers and workflows on systems throughout A browser-based interface allows you and your trading partners to perform
your enterprise. They are managed by a central deployment of the product, file transfers through HTTPS. This type of interface may give your team the best
allowing you to run processes and transfers across multiple locations. flexibility because it doesn’t require a desktop client installation. Additionally,
look for a solution with good mobile support, so you can check your file transfer
Automation metrics and system activity on-the-go from any device, including tablets and
A MFT solution with batch automation will allow you to determine when your file smartphones.
transfers perform. Look for an option that can execute multiple transfers concurrently,
trigger when another process completes, and comes with a builtin scheduler, which
eliminates the need for other tools or software to launch your workflows.

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Load Balancing & Clustering EDI File Translation

Load balancing allows you to process high volumes of file transfers by spreading Many traditional EDI tools are complex and time-consuming to configure. A robust
the workload across multiple systems. Clustering (active active) allows the solution with EDI file translation should support critical X12 and EDIFACT standards
automatic failover to another system if a server in the cluster goes down. and combine file transfer and EDI into one, easy-touse solution for reading, writing,
and mapping X12 and XML files between databases.

In-Depth Evaluation

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IN-DEPTH EVALUATION
Create a Requirements Checklist
Once you’ve identified the features you want in an MFT solution and have an idea of what your organization needs in terms of deployment, industry, and cybersecurity, it’s
helpful to create a checklist of requirements that you can easily refer to when evaluating different MFT solutions.

Here’s an example requirements checklist to get you started:

Requirement Vendor 1 Vendor 2 Vendor 3

I can administer file transfers without having to install software on my PCs.

The solution can run on platforms (e.g. Windows, IBM i, Linux, Microsoft Azure).

The solution has role-based administration that allows for separation of duties.

The solution can help guarantee the delivery of file transfers.

The security standards I need, like (e.g. OpenPGP, SFTP, FTPS, and AS2), are supported by the solution.

The solution lets me encrypt data with FIPS 140-2 validated algorithms.

The solution produces detailed audit trails of all activity and supports SYSLOG feeds.

I am able to compress and decompress files using ZIP, GZIP, and TAR.

The solution can extract data from a database and convert it to popular file formats.

The solution allows me to translate/parse received files directly into a database.

The solution has configurable error handling (auto-retry, continue, send email alert, etc).

The solution includes an integrated scheduler for automatically running future transfers.

The solution monitors folders for new files and can call workflows to process those files.

The solution includes integrated key and certificate management tools.

The solution allows users to securely create ad-hoc file transfers.

The solution has a DMZ gateway that allows sensitive files to be kept in the internal network (out of the DMZ), without
needing to open inbound ports into that internal network.

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Requirement Vendor 1 Vendor 2 Vendor 3

The solution allows me to trade with an unlimited number of trading partners for one price.

I can install and start using the solution without assistance from the vendor’s technicians.

The solution helps my organization comply with critical industry and governmental regulations.

I can create file transfers and business processes that I want to perform without creating a script.

I can set password policies and expiration intervals for the product.

I can authenticate users against (e.g., LDAP or AD).

The solution offers notifications for login failures, rejected files, and other unusual activity.

The solution allows me to segment my organization into multiple security zones (with features like users, groups, roles,
and domains).

The solution allows me to track all user events and file transfer activity.

I can generate activity reports for trading partners.

I can authenticate server connections with a combination of passwords, SSH keys, and SSL certificates.

I can easily integrate with the web and cloud applications I use every day (e.g. Salesforce or SharePoint).

I can monitor file transfer metrics and system activity anywhere from any device (including smartphones and tablets).

The solution has customers or contacts I can talk to and/or the vendor can provide links to third-party sites

where their customers have submitted product reviews.

The vendor offers 24/7 software support (including weekends).

The vendor has professional services (e.g. product training, project consulting, migration assistance) to help me get
the most out of the product.

The solution offers flexible deployment: on-premises, in the cloud, Saas or hybrid.

The vendor invests in the product through frequent enhancements and support.

The vendor is Common Criteria-certified or is listed on the Product Compliant List of the NIAP-CCEVS.

Helpful Tip: If you have questions about any of these items, contact the vendor’s support team or your sales representative. Pay special attention to their response time and
what kind of answer you get. A vendor that is helpful during the evaluation period will also likely be helpful after purchase.

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IN-DEPTH EVALUATION
List Your Compliance Requirements
The MFT solution you’re evaluating may seem perfect on the surface, but you’ll want to make sure
that it also meets your compliance requirements.

Compliance regulations have been established to help organizations better protect people by
ensuring that they retain their right to data privacy, which is critical in today’s current high risk,
data transfer landscape. For many organizations, compliance mandates are the baseline for the
development of a secure and compliant IT infrastructure.

See what resources the solution offers for compliance. Do they have data sheets, checklists, or a
FAQ that describes how their product helps organizations meet certain regulation requirements?
When you combine a comprehensive strategy that prioritizes data security and data management,
then the process of meeting and maintaining compliance is simplified. A MFT product designed
with enterprise level security technologies can make the process of compliance achievable
and more manageable. Be sure that your MFT software delivers enterprise level security for your
organization’s most sensitive data and supports compliance mandates for your industry.

Beware of vendors who have labeled their MFT solution as certified:

e.g., “HIPAA Certified” or “GDPR Certified”

Most compliance regulations do not offer these certifications. Furthermore, a vendor

can never guarantee their product will make your organization compliant; they
can only help you take steps toward compliance. Ultimately, the responsibility to
become and remain compliant rests on you and your organization.

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IN-DEPTH EVALUATION
Determine Your Budget
Secure managed file transfer solutions come in all sizes and packages, from small,
free FTP tools to enterprise-sized solutions that cost hundreds of thousands of
dollars.

When determining how much you want to spend on an MFT solution, consider what
is—and isn’t—included in the price. Questions to ask the vendor’s sale team include:

• Can I license specific modules?

• Are clustered and load balancing licenses discounted?
• Do you discount non-production licenses?
• Can I lease the software?
• Do you offer user- or vendor-based licensing, or are users and vendors
unlimited?

Beyond initial software licenses, most buyers purchase a support package and
annual maintenance, so they can upgrade to the latest product version as soon as
it’s available.

Also consider any optional investments you’d like to put into the product, such as
professional services (e.g. migration and implementation assistance, software
training) or add-on modules that expand what you can do with your MFT solution.

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IN-DEPTH EVALUATION
Find the Solution’s ROI
Aside from its ability to secure and automate file transfer tasks, one of the most
attractive aspects of implementing an MFT solution is the positive return on the
investment (ROI). This ROI varies, as the amount you can save depends on the
vendor and product.

When evaluating solutions, look to see if the vendor has an ROI tool or resource
that will calculate how much your organization stands to save after replacing your
legacy products, manual file transfers and scripts, and homegrown workflows. A
MFT technology that is designed to scale with your growing business needs will
save you time, money, and most of all—it will save you the headache.

In general, MFT can help IT teams:

• Respond quickly to new security requirements without creating additional
work.
• Save time by eliminating labor-intensive processes like scripting and
programming.
• Grow with the needs of the organization as its data requirements become
more complex.
• Avoid unplanned and unnecessary system downtime by keeping file
transfers running.
• Scale with any nodes, systems, and networks added to an environment over
time.

See how much money you could save with an MFT solution using this handy ROI tool.

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Before You Buy

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BEFORE YOU BUY

Read MFT Reviews
At this point, you’ve hopefully filled out your requirements checklist, detailed which
features are important to you, determined how much you can spend, and stacked
each of these up against potential MFT solutions.

Once you’ve narrowed down the search, look at reviews to see what customers are
saying. Are they happy with the MFT solution you’re considering? What do they think
the product’s strengths and weaknesses are? Pay special attention to the “cons”
customers mention. Is there a trend among reviewers? Is the perceived negative a
dealbreaker for you?

Some good software review websites for MFT solutions are:

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BEFORE YOU BUY

Request a Demo/Trial
After reading reviews, request a demo or trial for your top-identified solutions.
Choosing a demo or trial (or both) fully depends on how much time you have
during your evaluation period.

A demo is a live, one-on-one meeting with the vendor’s product experts that
usually lasts an hour, giving you time to ask any questions you have that haven’t
been answered by previous research. It also lets the vendor show you areas of the
product you’re especially interested in, so you can see the solution in action.

A trial is usually a 14- to 30-day period that allows you to use the product and
see how it performs, how long it takes to set up a file transfer, what the encryption
process looks like, and more. A trial is more hands-on than a demo, allowing
you to explore features in your own time on your own system. This is often what
professionals need to go from “considering buying” to “invested in buying.”

How should you approach demos and trials?

To avoid getting overwhelmed with different solution details, we recommend first
attending a demo with two or three of your top vendor choices. Setting up a trial in
your environment can be time consuming; a demo will help you determine which
solutions appear to be the best fit for your organization.

Once you’ve narrowed your options to one or two vendors, use the trial period to
set up some file transfers, test encryption methods, and make sure the solution
works for you.

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BEFORE YOU BUY

Study Vendor Resources
Finally, take some time to explore the vendor’s MFT resources. Good resources, like
online documentation and educational videos, tell you that the vendor is not only
dedicated to developing powerful software, they’re also dedicated to helping you
understand everything the product can do for your organization.

Look for materials like these. They should be easy to locate:

• White papers
• Product videos
• Support forms
• Training resources
• Professional services
• On-demand webinars
• Case studies and user testimonials
• A blog with helpful, up-to-date information
• Product documentation (user guides, support articles)

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After the Sale

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AFTER THE SALE

Connect with Like-Minded
Customers
Congratulations! You’ve successfully purchased an MFT solution. Once the
software is up and running in your environment, you might think the process is
over… but it doesn’t have to be.

If you want to maximize your new investment, consider connecting with other like-
minded customers who use MFT or your chosen vendor.

Some vendors offer a customer portal that gives access to community forums,
where you can brainstorm with other customers over questions you might have,
suggest enhancements and fixes you’d like to see in the product, and share any
templates or workflows you create with others.

You might also learn how others have tackled specific MFT projects on websites like:

Stack Overflow | Reddit

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AFTER THE SALE

Receive Product
Training and Services
Some MFT vendors offer product training and professional services, both online and
on-site, for a fee. When choosing an MFT solution, see if the vendor offers training
and services to help your team get proficient with the solution and put it into
production in a timely manner.

Training should give you in-depth knowledge of the solution. When you request
training details, consider asking the vendor the following questions:

• Are the training costs the same regardless of how many people attend the
session?
• Is the training interactive or demonstrated by the trainer?
• Are there course outlines you can review before purchasing the sessions?
• Can you customize what will be covered in training?

Professional Services usually provide integration, development, and consulting

services. If you don’t have the resources needed to implement the solution, or you’d
like to have the vendor help with the migration to the new solution, be sure to ask
the vendor if those services are available.

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 About Fortra
Fortra is a cybersecurity company like no other. We’re creating a simpler, stronger future for our
customers. Our trusted experts and portfolio of integrated, scalable solutions bring balance and
control to organizations around the world. We’re the positive changemakers and your relentless ally
to provide peace of mind through every step of your cybersecurity journey. Learn more at fortra.com.

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