Magazine
Cloud Storage
S3 Compatible

Optimize Veeam Backup to S3-Compatible Storage for Sovereignty and Predictability

08.09.2025

11

Minutes
Thomas Demoor
CTO Impossible Cloud
How European businesses can eliminate egress fees and meet GDPR compliance by pairing Veeam with a sovereign cloud storage solution.

Key Takeaways

  • Achieve digital sovereignty and GDPR compliance by using EU-only, geofenced S3-compatible storage for your Veeam backups, eliminating CLOUD Act exposure.
  • Eliminate unpredictable cloud bills with a storage provider that charges zero egress fees and no API call costs, ensuring predictable margins and cost savings of up to 80%.
  • Protect your Veeam backups from ransomware by default using immutable storage with S3 Object Lock, guaranteeing a clean, unalterable copy for recovery.

For UK and European enterprises, leveraging Veeam for data protection is a standard practice, but choosing the right backup target is critical. Sending backups to non-EU cloud providers introduces significant risks, including unpredictable egress fees and exposure to foreign data access laws. A modern strategy requires more than just S3 compatibility; it demands a platform built for digital sovereignty, cost control, and ransomware resilience. This guide details how to structure your veeam backup to s3 compatible storage to achieve GDPR compliance, eliminate hidden costs, and ensure rapid recovery, transforming your backup repository into a strategic asset.

Secure Sovereign Veeam Backups in EU Data Centers

Ensuring data sovereignty is the number one priority for EU businesses. While the GDPR does not strictly mandate data residency within the EU, it heavily regulates data transfers to non-EEA countries, requiring complex legal safeguards. Storing data with providers subject to foreign jurisdictions like the US CLOUD Act creates significant compliance risks, even if the servers are physically located in Europe.

Impossible Cloud provides a solution that is sovereign by design, operating exclusively in certified European data centers. We offer country-level geofencing, guaranteeing your Veeam backup data remains within a predefined region under EU law, with 100% of operations governed by European legal frameworks. This eliminates the legal ambiguity and overhead of managing cross-border data transfer risks for your cloud backup strategy.

This focus on EU-centric governance provides the legal certainty that over 75% of European IT leaders demand. It ensures your most critical data assets are protected from foreign legal access requests, a foundational requirement for a resilient data protection plan.

Eliminate Unpredictable Costs for Veeam Backup Storage

Hidden costs can derail even the most carefully planned backup budget. Egress fees—the charges for moving data out of a cloud—are a primary cause, often accounting for 10% to 15% of a company's total cloud bill. These unpredictable charges create vendor lock-in, making it prohibitively expensive to switch providers or perform large-scale restores, a situation the EU Data Act aims to resolve.

Impossible Cloud is predictable by design, with a transparent pricing model that includes zero egress fees and no charges for API calls. This approach delivers up to 80% cost savings compared to hyperscaler alternatives. For MSPs and enterprises, this means you can restore any amount of Veeam backup data at any time without financial penalties. Our model removes the budget anxiety associated with data recovery and multi-cloud data movement.

Here is how a predictable cost model benefits your operations:

  • Budget Stability: Forecast your storage costs with 100% accuracy, regardless of data access patterns.
  • Frictionless Restores: Conduct full disaster recovery tests or granular restores without incurring unexpected data transfer charges.
  • No Vendor Lock-In: Maintain negotiating power and the freedom to move your data, aligning with the principles of the upcoming EU Data Act.
  • Margin Protection for MSPs: Build profitable Backup-as-a-Service (BaaS) offerings with clear, defensible margins.

By removing punitive zero egress fees, you can fully leverage your Veeam investment without fear of financial surprises. This economic clarity is a key driver for the 60% of businesses looking for EU cloud alternatives.

Build a Ransomware-Proof Veeam Strategy with Immutability

Ransomware attacks increasingly target backup repositories to prevent recovery, making immutable storage a critical last line of defense. Immutable backups, using S3 Object Lock technology, create a WORM (Write-Once-Read-Many) version of your data that cannot be altered or deleted by anyone—including attackers with admin credentials—for a set retention period. This ensures a clean, uncorrupted copy of your data is always available for recovery.

Impossible Cloud integrates seamlessly with Veeam's immutability feature, allowing you to create a secure, air-gapped backup destination. When you configure your veeam backup to s3 compatible storage with our platform, enabling Object Lock takes just one click. This simple step protects 100% of your backup files from encryption or deletion, rendering ransomware attacks on your backup data ineffective. This is a core requirement for meeting regulations like DORA and NIS-2.

A strong defense strategy ensures you can restore operations within minutes, not weeks. Our platform provides the benefits of immutable storage without compromising performance, giving you the confidence to recover from any incident. This approach is essential for creating truly ransomware-resistant storage.

Achieve Seamless Integration with Enterprise-Ready S3 Compatibility

True S3 compatibility goes far beyond basic object operations. For a seamless Veeam integration, your storage must support advanced capabilities like versioning, lifecycle management, and event notifications consistently across the API, CLI, and SDK. Impossible Cloud delivers 100% S3 API compatibility, ensuring your existing Veeam jobs, scripts, and workflows operate without any code rewrites, protecting your past investments.

We also simplify operations with our “Always-Hot” object storage model. Unlike tiered storage that creates delays and complexity during restores, all data on our platform is immediately accessible with predictable, low latencies. This aligns with Veeam's best practices, which advise against using provider-side tiering policies that can interfere with backup and restore operations. With our architecture, you avoid the fragile lifecycle policies that lead to API timeouts and hidden restore fees, reducing operational complexity by at least 30%.

This enterprise-grade architecture guarantees the consistency and availability needed for demanding backup and disaster recovery workloads. It ensures every restore operation, whether for a single file or a full data center, is fast and reliable.

Meet EU Regulatory Demands for Data Portability and Security

The European regulatory landscape is evolving, with two key directives shaping the future of cloud services. The EU Data Act, effective from September 2025, is designed to prevent vendor lock-in by making it easier for customers to switch cloud providers, including the portability of all metadata and configurations. The NIS-2 Directive mandates stronger cybersecurity measures, including continuous risk management and supply-chain security assurance for critical infrastructure.

Impossible Cloud is built to meet these future requirements today. Our commitment to open standards and full data portability aligns directly with the goals of the EU Data Act. We provide a clear exit path, ensuring you can move your data without technical or financial barriers. Our platform's security posture, including multi-layer encryption, IAM with MFA, and immutable storage, provides the robust controls needed to comply with NIS-2's stringent requirements.

By choosing a compliant-by-design platform, you turn regulatory readiness into a competitive advantage. You can assure auditors and customers that your data management practices meet the highest standards of EU law, reducing compliance overhead by over 25%.

Empower MSPs with a Predictable, Partner-Ready Platform

For Managed Service Providers, profitability depends on predictability. Impossible Cloud's partner-ready platform is engineered to protect MSP margins for BaaS and archiving services. With zero egress and API fees, you can offer competitive, fixed-price services to your clients without risking your own profitability, increasing potential margins by up to 40%.

Our platform provides the tools MSPs need to operate efficiently and securely. The multi-tenant partner console includes granular role-based access control (RBAC) and multi-factor authentication (MFA) for secure client management. Full automation is available via our S3-compatible API and CLI, allowing for streamlined onboarding and reporting. This focus on operational excellence helps MSPs deliver better Veeam storage optimization to their clients.

We are expanding our reach to better serve local partners across Europe. With new distribution agreements with api in Germany and Northamber plc in the UK, we are making it easier than ever for resellers and MSPs to access sovereign, predictable cloud storage. This growing ecosystem provides the local support and expertise needed to accelerate your business.

FAQ

What makes Impossible Cloud different from other S3-compatible storage providers for Veeam?

Impossible Cloud is a European, sovereign-by-design provider that guarantees data residency in certified EU data centers. Our key differentiators are a predictable pricing model with zero egress fees or API call costs, and an enterprise-ready platform with an 'Always-Hot' architecture for fast, consistent restores.

How do I migrate my existing Veeam backups to Impossible Cloud?

Migration is straightforward due to our full S3 API compatibility. You can add Impossible Cloud as a new object storage repository in your Veeam console and then create Backup Copy jobs to move existing backups. Our team can provide step-by-step guidance to ensure a smooth transition.

Is your storage performance suitable for direct-to-object Veeam backups?

Yes. Our 'Always-Hot' architecture is built for consistency and predictable low latencies, making it ideal for direct-to-object workloads. All data is immediately accessible without any tier-restore delays, ensuring both backup and recovery operations meet enterprise performance expectations.

How does your pricing model work for MSPs?

We offer a simple, transparent pricing model based on storage consumed. There are no egress fees, no API call charges, and no minimum storage durations. This allows MSPs to build profitable Backup-as-a-Service (BaaS) offerings with predictable, stable margins.

Does Impossible Cloud support multi-tenancy for channel partners?

Yes, our partner console is designed for multi-tenancy. It allows MSPs and resellers to manage multiple end-customer accounts securely, with role-based access control (RBAC) and MFA to enforce granular permissions and maintain security.

How does Impossible Cloud help with NIS-2 and EU Data Act compliance?

Our platform's inherent security features, such as multi-layer encryption and immutability, help meet NIS-2's risk management requirements. Our commitment to open standards and zero-cost data portability directly supports the EU Data Act's goal of preventing vendor lock-in.