Escape the Hidden Costs Eroding Your Margins

The top challenge for MSPs in 2025 is managing unpredictable cloud costs. In the United States, 66% of organizations exceeded their cloud storage budgets, with hidden fees being a primary cause. These charges, primarily for data egress and API calls, can turn a profitable backup service into a liability overnight, making ROI calculations nearly impossible. For many European businesses, these fees have actively delayed critical IT initiatives.

This pricing complexity creates significant strategic risk through vendor lock-in. Punitive egress fees make switching cloud providers prohibitively expensive, trapping MSPs and their clients in unfavorable contracts. The lack of cost transparency undermines an MSP's ability to quote competitively and maintain stable margins. A predictable MSP cloud backup model is essential for long-term profitability and client trust.

Overcoming this challenge requires a shift away from traditional hyperscaler models that penalize data movement.

Adopt a Predictable-by-Design Storage Model

A predictable cost model is the foundation of a profitable MSP backup storage service. The most effective approach is to adopt S3-compatible object storage that is cost-efficient by design, completely eliminating egress fees, API call costs, and minimum storage duration charges. This transparent structure allows MSPs to forecast expenses with 100% accuracy, protecting margins from unexpected volatility. Organizations report up to 80% cost savings by removing these hidden fees from backup workflows.

This model offers more than just savings; it provides a competitive advantage. With predictable costs, you can offer more aggressive pricing for BaaS and DRaaS solutions while maintaining healthy margins. Fast onboarding and a partner-ready console with multi-tenant management simplify operations from day one. This approach transforms your cloud backup storage from a cost center into a predictable revenue driver.

With costs under control, the next priority is ensuring the service is both secure and compliant for all client workloads.

Deliver Enterprise-Grade Ransomware Protection and Compliance

Ransomware attacks increasingly target backup infrastructure, making robust security non-negotiable. In fact, 9 out of 10 attacks in the financial sector attempt to compromise backups. An effective MSP backup storage solution must include immutable storage with Object Lock capabilities. This feature prevents backup data from being altered or deleted for a set period, rendering ransomware encryption useless.

A secure platform should offer several layers of defense. The following are essential for protecting client data:

• Immutable Storage: Utilizes Object Lock to make backups unchangeable, providing a reliable recovery point.
• Multi-Layer Encryption: Secures data both in transit and at rest, controlled by the customer.
• Robust IAM: Implements Identity and Access Management with MFA and Role-Based Access Control (RBAC).
• Certified Compliance: Holds enterprise-grade certifications like SOC 2 and ISO 27001 for regulated workloads.

Data control is further enhanced with country-level geofencing, keeping data within predefined regions. This combination of features provides a resilient data backup strategy that meets stringent regulatory requirements without vendor lock-in.

Security must be paired with seamless operational integration to be truly effective.

Ensure Seamless Integration with Full S3 Compatibility

S3 compatibility has become the industry standard, but not all alternatives deliver on its promise. True compatibility goes beyond basic operations, supporting advanced capabilities like versioning and lifecycle management. This ensures that existing applications, scripts, and backup tools continue to work without code rewrites, protecting past investments and reducing migration risk to near zero. A fully compatible solution acts as a drop-in replacement for AWS S3, requiring only an endpoint change.

This seamless integration is critical for MSPs managing diverse client environments. The ability to use existing tools, including leading backup software from partners like NovaBackup, accelerates onboarding and reduces operational overhead. A 100% S3-compatible API ensures that automation scripts and workflows function perfectly from the start. This technical alignment makes migrating to a new Veeam backup storage provider a simple, low-risk process.

Beyond compatibility, the underlying architecture determines the performance and reliability of your backup services.

Leverage an 'Always-Hot' Architecture for Superior Performance

Many cloud providers use complex storage tiering to manage costs, but this approach often creates new problems. Tiering policies can be fragile, leading to restore delays, API timeouts, and surprise fees when data access patterns change. An "Always-Hot" object storage model eliminates this complexity entirely. In this model, all data is immediately accessible without any tier-restore delays, ensuring consistent, predictable performance for every workload.

This architecture delivers tangible benefits for backup and recovery operations. Here is how it improves service delivery:

1. Faster Performance: Delivers up to 20% faster backup and restore performance compared to traditional tiered storage.
2. No Restore Surprises: Eliminates restore fees and waiting periods, strengthening recovery and auditability.
3. Operational Simplicity: Avoids the need to manage complex lifecycle policies that can drift over time.
4. Tool Stability: Keeps third-party backup tools stable by providing consistent low-latency access to all data.

This model ensures strong read/write consistency and predictable latencies for millions of files. An always-on object storage system is simpler, faster, and more reliable for mission-critical disaster recovery.

This powerful architecture directly supports an MSP's ability to build and scale a profitable business.

Build Your Business with a Partner-Ready Platform

An effective MSP backup storage solution must be more than just technically sound; it must be built for partners. A partner-centric platform provides the tools needed to manage a multi-tenant environment efficiently. This includes a unified console with granular RBAC, automation via API and CLI, and comprehensive reporting. These features reduce administrative overhead by over 30% and allow MSPs to onboard new clients quickly.

The financial model is equally important for partner success. With zero egress fees and no API charges, MSPs can quote BaaS and DRaaS services with confidence, knowing their margins are protected. This cost efficiency becomes a powerful competitive advantage, enabling you to pass savings to customers or increase profitability on existing contracts. As a backup reseller, this predictability is the key to sustainable growth.

With the right platform, you can confidently implement a modern, cost-effective backup strategy for every client.

Implement a Modern 4-2-2 Backup Strategy for Total Resilience

The classic 3-2-1 backup rule provides a solid foundation, but modern threats demand a more resilient approach. A 4-2-2 strategy enhances this rule for today's challenges. It involves maintaining four copies of your data on two different media types, with two copies offsite, one of which is immutable. This approach provides an extra layer of protection against ransomware and localized disasters.

Implementing this strategy with a cost-efficient storage partner makes it economically viable. By using S3-compatible storage with no egress fees, the cost of maintaining multiple offsite copies remains predictable and low. This allows you to offer a premium, highly resilient service without the premium cost structure typically associated with such a robust 3-2-1 backup rule evolution.

Ready to break free from unpredictable costs and build a more profitable backup service? Talk to an expert to calculate your savings.