Magazine
Cloud Storage
Enterprise Storage

The Best Cloud Storage for MSPs: A Blueprint for Predictable Margins and 80% Cost Reduction

26.08.2025

9

Minutes
Thomas Demoor
CTO Impossible Cloud
How to eliminate egress fees and vendor lock-in with an enterprise-grade, S3-compatible alternative designed for the channel.

For Managed Service Providers, finding the best cloud storage isn't just about capacity; it's about profitability and control. The number one cloud pain point is cost unpredictability, with hidden fees from major providers consuming up to 80% of a typical storage budget. This forces MSPs into a difficult position, risking either margin erosion or uncompetitive pricing. An S3-compatible alternative built for the channel offers a solution. It provides the performance and security clients demand while eliminating the egress fees and vendor lock-in that destroy financial models. This approach delivers data control and predictable costs, creating a foundation for scalable growth.

Key Takeaways

  • Eliminate 60-80% of typical cloud storage costs by choosing a provider with zero egress fees, no API charges, and no minimum storage durations.
  • Leverage a 100% S3-compatible platform to ensure seamless migration and integration with existing backup tools, scripts, and applications without any code rewrites.
  • Protect clients from ransomware with immutable storage and Object Lock capabilities, combined with an "Always-Hot" architecture for up to 20% faster restores.

Eliminate Unpredictable Costs with a Transparent Economic Model

The primary challenge for MSPs is managing unpredictable cloud costs. Egress fees and API charges often exceed storage costs by 3-5x in data-intensive workloads. A transparent pricing model eliminates these variables entirely. You get zero egress fees, zero API call costs, and no minimum storage duration charges. This approach is predictable by design, eliminating 60-80% of typical cloud storage expenses. This allows you to quote BaaS and DRaaS services with complete confidence in your margins. You can find more information on cloud storage with no hidden costs. This financial stability is the first step toward building more profitable client relationships.

Ensure Seamless Integration with Advanced S3 Compatibility

Migrating clients to a new storage platform can introduce significant risk and cost. The best cloud storage for MSPs must offer a drop-in replacement for existing infrastructure. Full S3-API compatibility ensures your current apps, scripts, and tools continue working without code rewrites. This protects thousands of dollars in past technology investments. It supports not just basic operations but also advanced capabilities like versioning and lifecycle management. Migration is simplified to changing an endpoint, reducing risk and accelerating time-to-value by over 50%. This seamless transition makes adopting affordable object storage a practical reality. With compatibility assured, you can focus on delivering value instead of managing technical debt.

Boost Ransomware Defense with Immutable, Always-Hot Storage

Ransomware attacks increasingly target backup infrastructure as the primary objective. Immutable storage with Object Lock is a non-negotiable capability for business continuity. It creates a tamper-proof copy of your data, making it invulnerable to malicious encryption or deletion. This feature is a core requirement for many cyber insurance policies today. Our architecture combines this security with an "Always-Hot" object storage model, ensuring all data is immediately accessible without tier-restore delays. This model delivers consistent low latency, resulting in up to 20% faster backup performance compared to traditional tiered storage. Here are the core benefits:

  • Immediate Access: All data is instantly available, eliminating restore fees and waiting periods.
  • Operational Simplicity: Avoids fragile tiering policies that lead to API timeouts and hidden costs.
  • Ransomware Protection: Immutable storage ensures your backups are secure and recoverable.
  • Tool Stability: Predictable performance keeps third-party backup tools like NovaBackup stable.

This robust defense posture is essential for protecting your clients' most critical assets.

Strengthen Governance with Enterprise-Grade IAM and Compliance

MSPs serving regulated industries require a foundation of verified security and compliance. Enterprise-grade certifications like SOC 2 and ISO 27001 are essential for handling sensitive workloads. These certifications provide third-party validation of security controls without vendor lock-in. Identity-based IAM with granular, role-driven policies (RBAC) and MFA ensures only authorized users can access specific data. You can implement time-bounded access and presigned URLs for enhanced security on over 99% of tasks. The platform also supports external IdPs via SAML/OIDC for seamless integration. This level of control is critical for maintaining a strong 3-2-1 backup strategy. These features provide the governance needed to meet stringent client requirements.

Build Client Trust with a Built-In Exit Strategy

Vendor lock-in is a top concern among IT leaders, creating significant strategic risk. Punitive egress fees and proprietary APIs make switching cloud providers prohibitively expensive. The best cloud storage for MSPs is designed with data portability in mind. An exit strategy is built-in from day one. Because the platform is fully S3-compatible and charges zero egress fees, you can move client data at any time without financial penalty. This preserves your negotiation power and gives your clients long-term freedom of action. This commitment to open standards makes it one of the most reliable cloud storage options. This transparency builds a level of trust that proprietary systems cannot match.

Drive MSP Profitability with a Partner-Ready Platform

A platform designed for the channel provides tools that directly enhance MSP operations and profitability. Predictable costs from zero egress fees enable competitive BaaS and DRaaS pricing with healthy, defensible margins. The partner console is built for efficiency. It includes:

  1. Multi-Tenant Management: Securely manage multiple clients from a single interface with robust RBAC/MFA.
  2. Full Automation: Utilize the API and CLI to automate provisioning, billing, and reporting workflows.
  3. Simplified Onboarding: Fast onboarding processes get new clients protected in under 24 hours.
  4. Detailed Reporting: Access the data needed to manage usage and demonstrate value to clients.

This cost efficiency becomes a competitive advantage, allowing you to pass savings to customers or increase profitability on existing contracts. This focus on partner success is why we are growing our network of channel partners. Ultimately, a partner-centric model provides the tools to scale your MSP backup storage business effectively.

FAQ

How does your pricing model help me build a more profitable MSP business?

Our model is predictable by design. We charge for storage capacity only, with no egress fees, API call charges, or minimum durations. This eliminates the hidden costs that destroy margins, allowing you to price your services competitively while maintaining profitability. Organizations report 60-80% savings.


What tools are available for managing multiple clients?

Our platform includes a multi-tenant partner console designed for MSPs. It features Identity and Access Management (IAM) with role-based access control (RBAC) and MFA, allowing you to securely manage each client's data, permissions, and reporting from a single dashboard.


How does Object Lock protect my clients from ransomware?

Object Lock, or immutable storage, allows you to make backup files unchangeable and undeletable for a specified period. Even if an attacker gains access, they cannot encrypt or erase the protected backups, ensuring a clean copy is always available for recovery.


What does 'drop-in S3 replacement' mean for my existing tools?

It means our storage uses the same S3 API as major providers. Your existing backup software (like Veeam or NovaBackup), management scripts, and applications will work without any modification. You just need to update the endpoint to our service, saving significant development time and cost.


Can I really move my data away at any time without penalty?

Yes. We believe vendor lock-in is a strategic risk. Our use of the standard S3 API and our policy of zero egress fees means you have a built-in exit strategy. You can retrieve and move your data to another provider whenever you choose, without facing prohibitive costs.


What kind of performance can I expect for backups and restores?

Our 'Always-Hot' architecture ensures all data is immediately available with consistent, low latency. This design can deliver up to 20% faster backup and restore performance compared to traditional cloud storage that relies on slow and complex data tiering.


Would you like more information?

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