Magazine
Cloud Storage
S3 Compatible

Cloud Backup Pricing Comparison: How to Achieve Predictability and Sovereignty

19.09.2025

10

Minutes
Thomas Demoor
CTO Impossible Cloud
Moving beyond confusing pricing tiers to a transparent, EU-centric cloud backup strategy.

Key Takeaways

  • A true cloud backup pricing comparison must account for hidden costs like egress fees and API charges, which can inflate bills by over 70%.
  • The upcoming EU Data Act will mandate easier switching between cloud providers and eliminate switching fees by 2027, favoring transparent pricing models.
  • Digital sovereignty, achieved by using EU-based data centers under EU law, is a critical factor for GDPR and NIS-2 compliance.

Most cloud backup pricing comparisons focus on the cost per gigabyte, but this overlooks the largest expenses: egress fees and API call charges. These unpredictable costs can inflate a monthly bill by over 70%, making budget forecasting a significant challenge for IT leaders. True cost savings come from a predictable pricing model that eliminates these variables entirely. This approach, combined with a commitment to data sovereignty, offers a stable, secure, and financially sound strategy for enterprise backup and disaster recovery. It’s time to demand both performance parity and economic clarity from your cloud storage provider.

Deconstruct Your Cloud Backup Bill to Reveal Hidden Costs

A typical cloud backup pricing comparison often misses costs hidden in the fine print, which can account for a large portion of your total spending. Data egress fees, charged each time you restore or move data, can range from 5 to 20 cents per GB. For a large-scale recovery of 100 TB, this alone could result in an unexpected bill of over €15,000.

Many providers also charge for API calls, which are essential for backup software to function, adding thousands of micro-transactions to your invoice. A significant share of companies feel locked into providers due to this pricing complexity. These variable expenses make a true cloud storage pricing comparison difficult and undermine budget predictability.

The upcoming EU Data Act, effective from September 2025, aims to address this by mandating easier switching between providers and phasing out switching charges completely by 2027. This regulatory shift highlights the growing demand for transparent economic models in the cloud market.

Adopt a Predictable Pricing Model Without Egress Fees

A predictable pricing model is sovereign by design, eliminating the variables that cause budget overruns. Imagine a structure with zero egress fees, zero API call costs, and no minimum storage durations. This transparency allows for a straightforward cloud backup pricing comparison based on storage consumption alone.

This model directly supports the goals of the EU Data Act, which empowers customers with greater control and facilitates easier migration without financial penalties. Predictable costs give Managed Service Providers (MSPs) the ability to offer services with defensible margins. For enterprises, it means the cost of a full disaster recovery test is zero, encouraging better resilience practices.

By choosing a provider with a transparent economic framework, you align your backup strategy with principles of financial control and operational freedom. This clarity is the foundation of a modern, resilient cloud architecture.

Demand S3 Compatibility and an 'Always-Hot' Architecture

Full S3 API compatibility is essential for a seamless transition and continued operation of your existing backup tools and scripts. Many European providers now offer S3-compatible object storage, ensuring that your investments in applications are protected. This compatibility should extend beyond basic operations to include versioning, lifecycle management, and event notifications.

An 'Always-Hot' storage model further simplifies operations and costs by making all data immediately accessible without restore delays or retrieval fees. This architecture eliminates the complexity and risks of storage tiering, where policies can fail and lead to API timeouts or unexpected charges. With an always-hot model, every restore operation has a predictable latency of milliseconds.

Here is what to expect from an enterprise-ready S3 compatible platform:

  • Consistent support for advanced object operations like versioning and lifecycle management.
  • Predictable latencies for both read and write operations, ensuring backup windows are met.
  • Multi-AZ replication to protect data integrity against localized failures.
  • Immediate data accessibility without any tier-restore delays or associated fees.

This architectural choice directly impacts your recovery time objectives (RTO) and strengthens your overall ransomware protection posture.

Prioritize European Sovereignty and Regulatory Readiness

Storing data within the EU is a primary criterion for a majority of decision-makers, driven by regulations like GDPR. True digital sovereignty means your data is stored exclusively in certified European data centers, operated by an EU company, and governed by EU law. This eliminates exposure to foreign laws like the CLOUD Act.

Country-level geofencing provides another layer of control, ensuring data from regulated industries like financial services remains within a specific nation's borders. This capability is critical for meeting stringent compliance mandates. Operating exclusively in ISO 27001-certified data centers provides verifiable proof of robust security management.

Furthermore, your cloud provider must be prepared for upcoming regulations:

  1. EU Data Act (Sept. 2025): The provider must prove there is a real exit path by design, ensuring data portability that includes metadata and versions.
  2. NIS-2 Directive: The provider must demonstrate a continuous security process, including supply-chain assurance and vulnerability management, as part of its core operations.

This focus on sovereignty and compliance transforms regulatory burdens into a competitive advantage for your business.

Empower MSPs with a Partner-Ready Platform

For MSPs, resellers, and system integrators, a predictable pricing model is the key to building profitable Backup-as-a-Service (BaaS) offerings. Zero egress and API fees create stable, defensible margins, making it easier to price services competitively. A partner-ready platform should provide tools that simplify operations and accelerate growth.

Essential features for MSPs include a multi-tenant management console with robust role-based access control (RBAC) and multi-factor authentication (MFA). Automation via a comprehensive API and CLI is also necessary for efficient scaling and integration into existing workflows. Fast onboarding, with support from local distributors like api in Germany and Northamber plc in the UK, reduces time-to-market.

The combination of predictable margins and a feature-rich partner console allows MSPs to deliver high-value, compliant backup solutions to their clients. This approach builds a resilient and profitable channel ecosystem.

Implement a Resilient and Cost-Effective Backup Strategy

A modern backup strategy requires more than just storing data; it demands resilience against threats like ransomware. Immutable storage with Object Lock is a critical defense mechanism, making backups unchangeable for a defined period. This feature provides an audit-ready retention policy that helps meet compliance requirements.

When conducting a cloud backup pricing comparison, evaluate providers on their security and resilience features, not just storage costs. A truly enterprise-ready solution integrates multi-layer encryption for data in transit and at rest, along with robust Identity and Access Management (IAM) controls. Support for external identity providers via SAML/OIDC further strengthens security.

Your checklist for a resilient backup solution should include:

  • Immutable storage (Object Lock) for ransomware protection.
  • Multi-layer encryption for data at rest and in transit.
  • Granular IAM policies with MFA and RBAC support.
  • A proven exit strategy with open standards to prevent vendor lock-in.

By focusing on these capabilities, you can build a backup architecture that is secure, compliant, and economically sustainable. Talk to an expert to design your sovereign backup strategy today.

FAQ

How can I avoid unpredictable cloud backup costs?

Choose a cloud storage provider that offers a transparent pricing model with no egress fees, no API call charges, and no minimum storage durations. This ensures your bill is based solely on the amount of storage you use, making costs predictable and easy to manage.

What does S3 compatibility mean for my backup software?

Full S3 compatibility means your existing backup applications, scripts, and tools that work with the S3 API will continue to function without any code changes. This protects your current investments and makes migration to a new cloud provider seamless.

How does immutable storage protect against ransomware?

Immutable storage, using features like Object Lock, makes your backup data unchangeable and undeletable for a specified period. If you are hit by a ransomware attack, you can restore your systems from these protected, uncorrupted backups.

What advantages does a European cloud provider offer for GDPR compliance?

A European provider that stores data exclusively in EU data centers ensures you meet GDPR's data residency requirements by design. It also means your data is protected by EU privacy laws and is not subject to access requests from non-EU governments under foreign legislation.

Is it complicated to migrate my backups to a new provider?

Migration is straightforward if your new provider offers full S3 compatibility and has a transparent pricing model. With no egress fees from the new provider and tools designed for data portability, you can move your data without rewriting applications or facing punitive exit costs.

What should MSPs look for in a cloud backup partner?

MSPs should look for a partner with a predictable pricing model (zero egress/API fees) to ensure stable margins. The platform should also offer multi-tenant management, automation via API/CLI, and strong local support to simplify operations and accelerate onboarding.