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For IT leaders managing Veeam backups, selecting a cloud storage target is a decision with significant compliance implications. Storing data with non-EU providers creates unavoidable risks under regulations like GDPR, especially due to laws like the U.S. CLOUD Act. This guide outlines how to choose the most compliant cloud storage for Veeam in Europe, focusing on the key pillars of digital sovereignty, regulatory readiness for the EU Data Act and NIS-2, and the architectural elements that ensure both security and performance. We will explore how a sovereign-by-design approach eliminates legal conflicts and delivers the predictable, resilient storage modern enterprises require.
Key Takeaways
- True compliance requires a sovereign-by-design approach, using EU-only data centers to eliminate risks from foreign laws like the U.S. CLOUD Act.
- Predictable cloud costs are achievable with a model that has zero egress fees and zero API call costs, aligning with the EU Data Act's goals.
- Enterprise-ready features like full S3 compatibility and Immutable Object Lock provide a practical path to ransomware resilience and simplified Veeam migration.
Understanding the Core Compliance Challenge with Veeam Backups
Storing Veeam backups in the cloud is standard practice for over 90% of businesses, but a provider's legal jurisdiction is a primary compliance risk. The U.S. CLOUD Act allows U.S. authorities to demand data from American companies, regardless of where the data is stored. This creates a direct conflict with GDPR Article 48, which forbids data transfers based on third-country court orders. This legal clash puts your Veeam data in an impossible position. A recent survey showed that protection against such extra-territorial data requests is now the number one driver for seeking sovereign cloud solutions in Europe. True compliance requires a provider whose entire operation is based exclusively within the EU, making it legally immune to these foreign directives.
This fundamental conflict between legal frameworks is why simple data residency is no longer enough to guarantee compliance for your critical backup data.
Achieving True GDPR Compliance with Geofenced Storage
GDPR compliance for cloud storage rests on three pillars: EU data residency, lawful data transfers, and strong encryption. Many providers only focus on the first, but true data compliance demands more. A sovereign-by-design provider operates exclusively in certified European data centers, ensuring your Veeam backups are governed solely by EU law. This approach provides a 100% guarantee against non-EU data access requests. Country-level geofencing adds another layer of control, restricting data to specific nations to meet strict financial services or public sector mandates. This directly supports the GDPR's accountability principle under Article 32.
With a legally sound foundation, you can then build a technically robust security posture for your backups.
Fortifying Veeam Backups Against Ransomware with Immutability
Ransomware remains a top threat, with attacks impacting thousands of organizations annually. The most effective defense for your Veeam repository is immutable storage using S3 Object Lock. This feature makes your backup data unchangeable and undeletable for a set period, rendering ransomware attacks ineffective. It is a critical technical measure that provides verifiable proof of data integrity for audits. An "Always-Hot" storage model ensures this locked data is immediately accessible for restores, eliminating the 4 to 12-hour delays common with tiered archive systems. This combination of immutability and instant access is a core component of modern data resilience.
Here are the key security layers needed for a compliant and resilient Veeam repository:
- Immutable Storage (Object Lock): Makes backups ransomware-proof for defined retention periods.
- Multi-Layer Encryption: Protects data with unique keys both in-transit and at-rest.
- Identity and Access Management (IAM): Enforces least-privilege access with Role-Based Access Control (RBAC) and Multi-Factor Authentication (MFA).
- Full S3 API Compatibility: Ensures your existing Veeam jobs and scripts work without modification, reducing migration risk by 100%.
Beyond ransomware, your storage must also align with upcoming EU regulations that redefine data control and portability.
Future-Proofing Your Strategy for the EU Data Act and NIS-2
Two major EU regulations will reshape cloud services in 2025. The EU Data Act, fully applicable from September 2025, is designed to eliminate vendor lock-in by making it easy to switch cloud providers. It mandates that customers can move all data and metadata within 30 days, and it phases out switching charges entirely by January 2027. The NIS-2 Directive, expected to be transposed into German law by early 2025, requires stronger supply-chain security and risk management. Choosing a provider built on open standards is now a regulatory imperative. A compliant S3 storage for Veeam should already operate with zero egress fees and full data portability, aligning with the Data Act's core principles from day one.
This focus on predictable economics and operational freedom is especially valuable for managed service providers.
The MSP Advantage: Predictable Margins and Partner-Ready Tools
For MSPs offering Backup-as-a-Service (BaaS) with Veeam, unpredictable costs from hyperscalers erode margins by up to 30%. A pricing model with zero egress fees, no API call costs, and no minimum storage durations makes revenue predictable by design. This allows you to build defensible margins into every client contract. A partner-ready platform simplifies operations with essential multi-tenant management tools. Recent distribution agreements with partners like api in Germany and Northamber plc in the UK have expanded local access for hundreds of resellers.
A successful partner model requires these four elements:
- Predictable Pricing: A flat cost structure with zero hidden fees for egress or API calls.
- Multi-Tenant Console: A centralized portal with RBAC and MFA for secure client management.
- Full Automation: API and CLI tools to integrate storage management into existing workflows.
- Fast Onboarding: A simple process to get new clients set up in under 60 minutes.
With the right provider, migrating your Veeam workloads to a compliant cloud becomes a straightforward, low-risk process.
Your Practical Migration Checklist for Veeam
Migrating your Veeam backups to a sovereign cloud platform protects your past investments in scripts and training. The process leverages full S3 compatibility to minimize disruption. A typical migration involves just a few steps and can be completed in under one hour. The key is ensuring 1-to-1 mapping of your existing policies and settings. Start by adding the new provider as a repository in your Veeam console, then test with a single backup copy job. This validates connectivity and performance with zero impact on production workloads. A Veeam cloud storage solution should feel like a seamless extension of your current environment.
Making the switch to a truly compliant and sovereign cloud is the most strategic step you can take to secure your data for 2025 and beyond.
More Links
Data Protection Conference (DSK) provides recommendations on cloud computing from a German data protection authority.
Eurostat offers statistics and explanations on cloud computing usage by enterprises across Europe.
FAQ
What is sovereign cloud storage?
Sovereign cloud storage means your data is stored and managed by a provider entirely based within a specific legal jurisdiction, like the European Union. This ensures your data is subject only to EU laws, like GDPR, and is immune to foreign legal orders such as those under the U.S. CLOUD Act. It goes beyond simple data residency by guaranteeing legal and operational control.
Are there egress fees or other hidden costs?
Impossible Cloud operates on a transparent, predictable pricing model with zero egress fees, no charges for API calls (PUT, GET, LIST), and no minimum storage durations. You pay only for the storage you use, making it easy to forecast costs and maintain healthy margins, especially for MSPs.
How does Impossible Cloud ensure my Veeam backups are secure?
We provide multi-layered security. This includes S3 Object Lock for immutability against ransomware, multi-layer encryption for data in transit and at rest, and granular Identity and Access Management (IAM) with MFA and RBAC. Our platform is built to eliminate single points of failure, ensuring high availability.
Is it difficult to migrate my existing Veeam backups?
No, migration is simple. Because we offer full S3 API compatibility, Impossible Cloud works out-of-the-box with Veeam. You can add our storage as a new S3-compatible object storage repository in your Veeam console, and your existing backup and copy jobs will work without any changes to scripts or workflows.
How does your platform help with NIS-2 compliance?
The NIS-2 Directive requires robust supply-chain security and risk management. By providing a secure, resilient, and sovereign storage platform within the EU, we help you meet these requirements. Features like immutable backups and detailed logging provide verifiable proof of your data's integrity and security posture for audits.
Can I try the service before committing?
Yes, you can start a free trial to test the full functionality of our platform. This allows you to connect your Veeam environment, run test backup and restore jobs, and experience the performance and ease of use firsthand. Talk to an expert to get started.



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