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Cloud Storage
Object Storage

Unlock Predictable Margins With Affordable Object Storage for MSPs

12.11.2025

9

Minutes
Christian Kaul
CEO Impossible Cloud
Eliminate surprise egress fees and vendor lock-in to deliver secure, profitable BaaS and DRaaS services in 2025.

For Managed Service Providers, cost unpredictability is the single greatest threat to profitability. With 51% of UK firms overspending on cloud storage, the traditional hyperscaler model is broken. Egress fees and surprise API call charges can eliminate 60-80% of potential margins on backup and disaster recovery services. This article details a strategy for MSPs to reclaim control over their costs by adopting an affordable, S3-compatible object storage solution designed for predictable growth and enhanced security.

Key Takeaways

  • Eliminate unpredictable costs and increase margins by 60-80% by choosing an object storage solution with zero egress fees or API call charges.
  • Protect clients from ransomware with immutable storage (Object Lock), which makes backup data unchangeable and ensures reliable recovery.
  • Avoid vendor lock-in and ensure seamless tool integration with a fully S3-compatible API, allowing for a simple, drop-in replacement of existing storage.

Escape the Margin Erosion of Hidden Cloud Fees

Hyperscaler pricing models actively penalize data usage, creating massive budget overruns for MSPs and their clients. In the UK, 48% of cloud storage bills are consumed by access fees alone, not actual storage capacity. This volatility makes it impossible to forecast job costs or maintain stable margins. Over half of European organizations have delayed critical IT projects due to unpredictable egress fees. For MSPs offering BaaS or DRaaS, this directly translates into quoting uncertainty and shrinking profits. The solution is a transparent pricing model. An affordable cloud storage platform with zero egress fees, no API call charges, and no minimum storage durations provides the predictability needed to build competitive, high-margin services. This shift away from punitive pricing models is essential for sustainable MSP growth.

Deliver Enterprise-Grade Security Without Enterprise Cost

Ransomware remains the top threat identified by 57% of managed service providers. Attackers increasingly target backup infrastructure, making robust security non-negotiable for client trust and business continuity. A recent ransomware attack on a single UK MSP resulted in a £3.07 million fine and exposed the data of nearly 80,000 individuals. To counter this, MSPs need advanced security features built into their storage foundation. The following capabilities are critical for a modern MSP backup storage solution:

  • Immutable Storage: Using Object Lock technology, it creates a WORM (Write-Once-Read-Many) state, making backups unchangeable and undeletable by ransomware.
  • Multi-Layer Encryption: All data is secured both in-transit and at-rest, protecting it from unauthorized access at every stage.
  • Granular Access Control: Identity and Access Management (IAM) with Role-Based Access Control (RBAC) and Multi-Factor Authentication (MFA) ensures only authorized personnel can manage data.
  • Certified Compliance: Look for enterprise-grade certifications like SOC 2 and ISO 27001 to meet the needs of clients in regulated industries.

Only 17% of UK businesses now pay a ransom, relying instead on robust backups for recovery. This highlights the market demand for secure, reliable recovery solutions that MSPs can provide with the right storage partner.

Achieve Seamless Integration with S3 Compatibility

Vendor lock-in is a major strategic risk, with 41% of businesses feeling trapped by the high cost and complexity of migrating away from their current cloud provider. The S3 API has become the industry standard, and choosing an S3-compatible storage alternative is the most effective way to build an exit strategy from day one. Full S3 API compatibility ensures that all existing tools, scripts, and backup software work without modification. This drop-in replacement capability allows MSPs to migrate client data by simply changing the service endpoint and updating credentials. This seamless transition protects technology investments and reduces migration risk by over 90%. It also enables MSPs to leverage a broad ecosystem of S3-native applications for backup, archiving, and data management, including out-of-the-box integrations with leading vendors like NovaBackup. This operational consistency is key to scaling service delivery efficiently.

Boost Performance and Simplify Operations with an Always-Hot Model

Complex storage tiers create hidden operational costs and introduce dangerous delays during recovery operations. Many MSPs find their backup retention policies are constrained by local storage capacity, a problem tiering is meant to solve. However, waiting for data to be restored from an archive tier can cause API timeouts and break service level agreements (SLAs). An "Always-Hot" storage architecture eliminates this complexity entirely. All data is immediately accessible, reducing restore times and ensuring consistent, predictable performance for backup and recovery tasks. This model can deliver up to 20% faster backup performance compared to traditional tiered cloud storage. By removing the need to manage complex lifecycle policies, MSPs can simplify their operations, reduce the risk of human error, and guarantee that client data is always ready for a fast restore. This approach provides a superior client experience and strengthens the reliability of any DRaaS offering.

Build a Predictable and Profitable MSP Business

The UK MSP market generated £52.6 billion in 2022, demonstrating a massive opportunity for growth. Profitability in this competitive space hinges on cost control and service differentiation. An affordable object storage partner designed for the channel provides the tools for success. Key features for MSPs include:

  1. A Multi-Tenant Partner Console: Manage all your clients from a single dashboard with robust RBAC and MFA for security.
  2. Automation via API/CLI: Streamline onboarding, management, and reporting to reduce your operational overhead by up to 40%.
  3. Predictable Margins: With zero egress or API fees, you can quote clients with confidence, knowing your margins are protected from surprise charges.
  4. US Presence and Geofencing: Keep client data within specific geographic regions to meet data residency and compliance requirements.

By partnering with a storage provider that understands the MSP business model, you can build competitive BaaS and DRaaS offerings that deliver real value to clients while ensuring your own profitability. Ready to see how much you could save? Calculate your savings and discover a more predictable path to growth.

FAQ

How does your pricing model help MSPs increase profitability?

Our pricing is predictable by design. We charge only for the storage you use, with no egress fees, no API request costs, and no minimum storage durations. This transparency eliminates surprise bills, allowing MSPs to quote services with confidence and protect their margins, leading to cost savings of 60-80%.


Is your object storage compatible with my existing backup software?

Yes. We offer full S3 API compatibility, which means our storage works as a drop-in replacement for any application that integrates with AWS S3. This includes leading backup and recovery tools, allowing for a seamless transition without rewriting scripts or reconfiguring software.


How does Immutable Storage protect my clients' data?

Our Immutable Storage feature, using S3 Object Lock, protects data from being altered or deleted for a retention period you define. This is your best defense against ransomware, as it ensures that even if an attacker gains access, your backup files cannot be encrypted, guaranteeing a clean copy for recovery.


Can I manage multiple clients with your service?

Absolutely. We provide a multi-tenant partner console designed specifically for MSPs. It allows you to manage all your clients from a single interface, with granular role-based access control (RBAC) and MFA to ensure secure, streamlined operations.


Do you offer compliance certifications?

Yes, our platform is enterprise-ready and holds key compliance certifications, including SOC 2 and ISO 27001. This helps you meet the strict regulatory requirements of clients in sectors like finance and healthcare.


How do I get started or migrate my data?

Getting started is simple. Because we are fully S3-compatible, you can begin migrating data immediately by updating the endpoint in your existing tools to point to our service. Contact our team to start a free trial or get a personalized demo.


Would you like more information?

Send us a message and our experts will get back to you shortly.