Escape the Margin Erosion of Hidden Cloud Fees

The biggest threat to an MSP's profitability is not competition; it is the unpredictable cost structure of hyperscale cloud storage. Egress fees, which are charges for moving data out of a cloud, can generate bills over $900 for recovering just 10TB of client data. These hidden costs make budget forecasting impossible and directly erode the margins on Backup-as-a-Service (BaaS) offerings. Gartner has observed that egress charges can account for 10% to 15% of a total cloud bill.

This pricing model creates a significant business challenge for any MSP cloud backup service. When a client suffers an outage or ransomware attack, the MSP is penalized with high fees for performing the recovery. Many providers absorb these costs, which can reach tens of thousands of dollars for large data transfers, to maintain client trust. A predictable cost model with zero egress fees is the only way to quote with confidence and protect your margins.

An S3-compatible alternative eliminates this conflict of interest, ensuring that you can test restores and execute a full disaster recovery plan without financial penalty. This shift from a variable to a fixed-cost model for storage is fundamental for building a scalable and profitable service.

Deliver Enterprise-Grade Ransomware Protection

Ransomware remains a top threat, with attacks increasing by 11% globally in 2024. Cybercriminals are actively targeting backup infrastructure to prevent recovery and force a payout. For this reason, immutable storage has become a non-negotiable requirement for any modern backup strategy. Immutability, or Write-Once-Read-Many (WORM), ensures that once a backup is written, it cannot be altered or deleted for a defined period.

This capability is your last line of defense. An S3-compatible platform with Object Lock provides this protection out-of-the-box. It allows MSPs to create tamper-proof copies of client data, rendering them immune to encryption by ransomware. This feature is also critical for meeting cyber insurance policy requirements, which increasingly mandate verifiable backup integrity. With 50% of ransomware attacks in 2025 targeting critical infrastructure, proving resilience is key.

Implementing a robust defense requires a layered approach. Here is how MSPs can structure their offerings:

• Set retention policies with Object Lock to create a time-based, unchangeable copy of data.
• Use multi-factor authentication (MFA) and Role-Based Access Control (RBAC) to secure management consoles.
• Follow the 3-2-1 backup rule with an offsite, immutable copy stored in a secure data center.
• Regularly test restores to validate the integrity of your immutable backups.

This approach not only secures client data but also strengthens your position as a trusted security advisor.

Achieve Seamless Integration with S3 Compatibility

For MSPs, operational efficiency is paramount, and re-architecting backup workflows is a non-starter. A true S3-compatible alternative acts as a drop-in replacement, requiring no code rewrites or complex migration projects. This means your existing backup tools, scripts, and applications continue to work by simply changing the service endpoint. Full S3 API compatibility protects your past investments and reduces migration risk to nearly zero.

This seamless integration extends to advanced capabilities. A truly enterprise-ready platform supports more than just basic object operations. It must handle versioning, lifecycle management, and event notifications consistently across the API, CLI, and SDK. This ensures that automated processes, like tiered archiving or data analysis pipelines, function without interruption. Up to 20% faster backup performance can be achieved with consistent low latency.

The "Always-Hot" storage model further simplifies operations for any MSP backup storage solution. Unlike complex tiered systems that introduce delays and restore fees for accessing archived data, an always-hot architecture ensures all data is immediately accessible. This eliminates operational surprises and keeps third-party tools stable, a critical factor during urgent recovery scenarios.

Build Predictable Margins with a Partner-Ready Platform

A storage partner focused on the channel understands that MSP success depends on predictable margins. A pricing model that is transparent by design-with no egress fees, no API call costs, and no minimum storage durations-is the foundation of a profitable partnership. This allows you to pass savings to customers, increase profitability on existing contracts, or create more competitive BaaS and DRaaS offerings.

Beyond pricing, a partner-ready platform provides the tools needed to manage a multi-tenant environment efficiently. Key features for a cloud backup reseller include:

1. A multi-tenant console for streamlined client management, including RBAC and MFA.
2. Full automation capabilities via a comprehensive API and CLI for fast onboarding and scaling.
3. Detailed reporting and monitoring to track usage and ensure compliance.
4. SOC 2 and ISO 27001 certifications to meet the needs of clients in regulated industries.

This combination of predictable economics and purpose-built tools allows you to quote with confidence, knowing surprise bills will not erode your margins. It transforms your backup storage from a volatile cost center into a predictable and profitable revenue stream.

Secure Your Exit Strategy and Avoid Vendor Lock-In

Vendor lock-in is a major strategic risk, with data gravity and punitive egress fees making it prohibitively expensive to switch providers. Pulling just 1PB of data out of a major cloud can cost up to $120,000 in egress fees alone. A true storage partner provides an exit strategy from day one. This is achieved through a commitment to open standards and data portability.

The two pillars of a built-in exit strategy are S3 API compatibility and a zero-egress-fee policy. S3 compatibility ensures your data is always accessible with a wide ecosystem of tools, preventing reliance on proprietary technology. The absence of egress fees gives you the freedom to move data whenever and wherever you need it without financial penalty.

This preserves your negotiation power and long-term freedom of action. For any MSP evaluating the best cloud storage, the ability to retrieve all client data at no cost should be a primary consideration. It is the ultimate guarantee of data control and independence, allowing you to adapt your strategy as business needs evolve.