Magazine
Backup Solutions
Disaster Recovery

Drive Predictable Profits with Sovereign MSP Cloud Backup Solutions

26.08.2025

10

Minutes
Christian Kaul
Founder & COO Impossible Cloud
How EU-Centric, Egress-Free Storage Solves Compliance and Margin Challenges for MSPs in 2025

Key Takeaways

  • Offer clients true digital sovereignty with cloud backup solutions hosted exclusively in European data centers to meet GDPR and build trust.
  • Protect your margins by choosing a storage partner with a predictable pricing model that has zero egress fees and no API call costs.
  • Deliver robust ransomware protection using immutable storage (Object Lock) and an 'Always-Hot' architecture for instant data recovery.

For Managed Service Providers in 2025, navigating the cloud backup market has become a high-stakes balancing act. Clients demand robust protection against ransomware and absolute certainty on data location to meet GDPR. At the same time, hyperscaler pricing models with hidden egress and API fees create unpredictable costs, making it nearly impossible to maintain stable margins. This article details how European-built, S3-compatible object storage provides a strategic alternative. It delivers the digital sovereignty your clients require and the predictable, partner-centric economic model your business needs to grow.

Prioritise EU Data Sovereignty to Win Client Trust

A majority of EU decision-makers now demand European solutions for their critical data infrastructure. For over 72% of European businesses, data sovereignty is a primary factor when choosing technology vendors. Offering EU-only data residency is no longer a feature but a core requirement for client trust and retention.

Our MSP backup solutions are sovereign by design, operating exclusively in certified European data centers. This architecture provides clients with country-level geofencing, ensuring their data never leaves predefined regions. This approach directly addresses GDPR data residency rules and eliminates exposure to extra-territorial laws like the CLOUD Act.

By storing backup data within the EU, your MSP can guarantee compliance with strict data transfer restrictions. This verifiable commitment to European data protection regulations builds significant trust with clients in regulated industries. This foundation of regulatory alignment is critical for building future-proof services.

Stabilise Service Margins with a Predictable Cost Model

Predictable margins are the foundation of any successful Backup-as-a-Service offering. Yet, many MSPs find their profitability eroded by fluctuating monthly bills from hyperscale providers. Our pricing model is predictable by design, built specifically to protect partner margins with zero egress fees or API call costs.

This transparent economic model means you pay a single price for storage, regardless of how often clients need to access or restore their data. This completely removes the risk of surprise costs that can turn a profitable contract into a loss after a single large recovery event. A clear cost structure allows you to build defensible and stable pricing for your own cloud backup services.

MSPs can avoid numerous hidden charges common with other providers. Here are four examples:

  • Fees for retrieving data (egress charges).
  • Charges for application requests (API calls).
  • Costs associated with minimum storage durations.
  • Penalties for deleting data before a 90-day minimum.

This financial predictability empowers you to focus on service delivery, not on deciphering complex invoices. With a stable cost base, you can confidently scale your backup offerings.

Strengthen Ransomware Defence with Immutable Backups

Ransomware remains a primary threat, making immutable backups a critical component of any modern data protection strategy. Our platform includes Immutable Storage with Object Lock, a feature that prevents data from being altered or deleted for a set period. This creates a secure, tamper-proof copy of client data that is resilient to attack.

All data is stored in an “Always-Hot” object storage model, ensuring every file is immediately accessible without tier-restore delays. This architecture eliminates the operational complexity and hidden restore fees associated with fragile data tiering policies. One German healthcare insurer reduced its data center footprint by 90% after migrating to a sovereign cloud solution.

This combination of immutability and instant access means you can meet stringent Recovery Time Objectives (RTOs) of less than 1 hour. Offering ransomware-resistant storage provides a powerful competitive advantage and gives clients peace of mind. This resilience is further enhanced by seamless integration with existing tools.

Maintain Operational Continuity with Full S3 API Compatibility

Adopting a new storage backend should not require a complete overhaul of your existing operational workflows. Our platform is built with full S3-API compatibility, ensuring your current applications, scripts, and backup tools continue to work without modification. This protects your past technology investments and minimizes migration risk for you and your clients.

This compatibility extends to leading backup software, including our collaboration with NovaBackup for MSP-focused integrations. You can connect your existing tools to our storage endpoints in minutes, not weeks. This seamless transition allows you to enhance your service offerings without disrupting established processes. Explore our MSP partner program for more details.

Our S3 compatibility goes beyond basic operations to support advanced capabilities. Follow these four steps for a smooth migration:

  1. Confirm support for object versioning to protect against accidental deletions.
  2. Verify lifecycle management policies for automated data archiving.
  3. Test event notification capabilities for workflow automation.
  4. Ensure consistent performance across the API, CLI, and SDK interfaces.

This enterprise-ready approach ensures your entire backup and recovery ecosystem remains stable and performant. This technical alignment is key to meeting new regulatory demands.

Align Backup Services with 2025 EU Data Act and NIS-2 Mandates

The European regulatory landscape is evolving, with two key directives impacting MSPs directly. The EU Data Act, effective from September 2025, mandates data portability and aims to prevent vendor lock-in by making it easier to switch cloud providers. Our platform's use of open standards and transparent exit paths aligns perfectly with this requirement.

Simultaneously, the NIS-2 Directive requires stricter cybersecurity measures and incident reporting from a wider range of entities, including MSPs. National laws implementing NIS-2 must be in place by October 2024, holding senior management accountable for security functions. Our platform's built-in security features, like multi-layer encryption and IAM with MFA, help you meet these heightened obligations.

By choosing a compliant-by-design storage partner, you position your MSP as a strategic advisor helping clients navigate these complex new rules. Offering a BaaS solution built on a sovereign foundation demonstrates a proactive approach to the 2025 regulatory environment. This readiness is a powerful message to send to the market.

Scale Your MSP Business with a Partner-Centric Platform

Growth requires a platform built to support the channel, not compete with it. Our partner program is designed for MSPs, resellers, and system integrators, providing the tools needed for efficient management and scaling. The partner console offers multi-tenant management with role-based access control (RBAC) and MFA for security.

Automation via a comprehensive API and CLI allows for deep integration into your existing provisioning and billing systems. Fast onboarding processes mean you can have your first clients protected in under 24 hours. This focus on partner enablement is reflected in our expanding distribution network, which now includes api in Germany and Northamber plc in the UK.

This growing ecosystem provides local access and support for hundreds of resellers and MSPs across Europe. When you become a partner, you gain access to a platform engineered for your success. We provide the sovereign, predictable, and high-performance storage so you can deliver exceptional value to your clients.

FAQ

Is your cloud backup storage S3 compatible?

Yes, our object storage is fully S3 API compatible. This allows for seamless integration with your existing backup software, management tools, and scripts without requiring any code rewrites, protecting your current technology investments.

How does your pricing model help MSPs maintain profit margins?

Our pricing model is designed for predictability. We charge a flat rate for storage with no egress fees, no API request charges, and no minimum storage durations. This transparent approach eliminates surprise costs, allowing MSPs to price their services confidently and secure their margins.

Can I restrict client data to a specific country?

Yes. Our platform is sovereign by design and offers country-level geofencing. You can ensure your clients' backup data is stored exclusively in certified data centers within a specific European country, guaranteeing compliance with data residency regulations like GDPR.

How do you protect backups against ransomware?

We provide ransomware protection through Immutable Storage using S3 Object Lock. This feature allows you to make backup data unchangeable and undeletable for a defined retention period, ensuring a clean recovery copy is always available.

Do you offer a partner program for MSPs?

Yes, we have a dedicated partner program for MSPs, resellers, and system integrators. It includes a multi-tenant management console, automation tools via API/CLI, comprehensive reporting, and fast onboarding to help you scale your cloud backup business.

What makes your storage 'Always-Hot'?

Our 'Always-Hot' architecture means all data is stored in a single, high-performance tier and is immediately accessible. Unlike tiered models, there are no delays or fees for retrieving data from 'cold' or 'archive' storage, which simplifies operations and guarantees fast restores.