Cloud Storage
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Azure storage limitations UK
Beyond Hyperscaler Limits: A 2025 Guide to Sovereign Cloud Storage in the UK
UK businesses face growing risks from non-sovereign cloud storage, including exposure to foreign laws and unpredictable costs. True compliance in 2025 requires looking beyond where data is stored to who controls the infrastructure.
Key Takeaways
True UK data sovereignty requires a cloud provider that is not subject to foreign laws like the US CLOUD Act, regardless of data centre location.
Hyperscaler pricing models with egress and API fees create unpredictable costs, a limitation the EU Data Act aims to eliminate from September 2025.
An 'Always-Hot' storage architecture with immutable backups offers superior resilience and faster recovery times compared to complex, tiered models.
For UK IT leaders, managing data storage involves a complex web of regulations, from UK GDPR to the new EU Data Act. Many discover that using hyperscaler storage presents significant limitations, especially concerning data sovereignty and cost control. The physical location of a data centre in the UK is not enough to guarantee compliance when the provider is subject to foreign laws like the US CLOUD Act. This creates a compliance gap that affects over 70% of businesses. This article outlines these critical limitations and presents a sovereign, predictable path forward for UK enterprises and MSPs.
The Sovereignty Gap: Why UK Data Is Exposed in US-Owned Clouds
A primary limitation for UK businesses using US-owned cloud storage is the sovereignty gap created by the US CLOUD Act. This 2018 law allows US authorities to demand access to data controlled by US companies, regardless of where it is stored. This means your data in a UK-based data centre is not exempt from US jurisdiction. This legal conflict puts UK firms in a difficult position, risking non-compliance with UK GDPR, which governs data transfers. Choosing a provider with strictly EU-centric governance eliminates this risk entirely. True data sovereignty is a legal reality, not a marketing claim based on server location. This jurisdictional risk is a critical factor for over 80% of compliance officers in 2025.
This fundamental conflict creates unavoidable compliance challenges for businesses in regulated sectors. The following are key areas of exposure:
Legal jurisdiction conflicts with UK GDPR Article 48.
Risk of data access without notification to the UK data owner.
Inability to guarantee data residency under EU legal frameworks.
Exposure of sensitive intellectual property and client data.
Increased complexity for Data Protection Impact Assessments (DPIAs).
Understanding this distinction is the first step toward building a truly resilient and compliant data strategy.
Economic Constraints: The Problem of Unpredictable Egress and API Fees
Beyond compliance, UK businesses face significant economic limitations from hyperscaler pricing models. Unpredictable costs for data egress and API calls create major budgeting challenges, impacting total cost of ownership by up to 60%. These variable fees penalise businesses for accessing their own data, hindering multi-cloud strategies and data mobility. This model directly contradicts the principles of the new EU Data Act. A predictable, transparent model with zero egress or API fees offers a stable financial foundation. This allows for accurate forecasting, with some partners seeing a 40% improvement in margin predictability. You can learn more about hidden cloud costs in our detailed guide.
This pricing complexity actively discourages efficient data management and creates vendor lock-in. The EU Data Act, applicable from September 2025, is designed specifically to dismantle these barriers. This new regulation prepares the market for a more equitable cloud landscape.
The EU Data Act: Mandating a Fairer, More Portable Cloud Future
< p>The EU Data Act, fully enforceable from September 12, 2025, introduces a new reality for cloud providers and their customers. It mandates that users must be able to switch providers easily and phases out switching charges, including egress fees, entirely by 2027. This legislation makes data portability a legal right, requiring providers to offer clear exit paths without financial penalties. For many UK businesses, this is a chance to escape cloud vendor lock-in. Providers whose business models rely on these fees face a significant operational challenge. A storage architecture that is sovereign and predictable by design is already compliant with these future-facing rules.
Key requirements of the EU Data Act for cloud providers include:
Removing all commercial and technical obstacles to switching services.
Providing all exportable data in a structured, machine-readable format.
Phasing out all switching charges within a defined 3-year timeframe.
Offering transparent contracts that facilitate easy termination and migration.
This shift empowers UK businesses to choose solutions based on value, not contractual entrapment.
Architectural Limits: The Hidden Risks of Complex Storage Tiering
Many hyperscaler storage platforms rely on complex tiering, moving data between hot, cool, and archive layers. While seemingly cost-effective, this model introduces architectural limitations and operational risks. Restoring data from archival tiers can take hours, incurring unexpected fees and delaying critical recovery operations by up to 24 hours. This latency is unacceptable for ransomware recovery or urgent data analysis. An “Always-Hot” object storage model ensures all data is immediately accessible without restore delays. This simplifies operations for over 95% of backup and disaster recovery use cases. This approach aligns with a modern Azure storage evaluation framework.
This simplified, always-accessible architecture provides several key advantages:
Eliminates restore fees and unpredictable retrieval delays.
Reduces operational complexity and the risk of lifecycle policy errors.
Ensures third-party backup tools like Veeam and NovaBackup function without API timeouts.
Provides consistent, predictable performance for all data workloads.
This resilience is essential for meeting the stringent demands of modern data protection strategies.
NIS-2 Compliance: Securing the Digital Supply Chain
The EU's NIS-2 Directive, with enforcement beginning in 2025, raises the bar for cybersecurity across 18 critical sectors. It mandates robust risk management, 24-hour incident reporting, and stringent supply-chain security. For UK businesses, this means vetting every provider, including cloud storage, to ensure end-to-end compliance. Using a non-EU provider adds layers of complexity, making it difficult to verify the security posture of their entire supply chain. Personal liability for management under NIS-2 makes provider selection a board-level concern. A European provider operating under these same regulations offers a clear advantage. This simplifies the path to demonstrating due diligence and securing your digital ecosystem. For those considering a change, understanding how to handle migrating from Azure is a key first step.
A Partner-Ready Solution for the UK Channel
< p>For UK MSPs, resellers, and system integrators, these hyperscaler limitations represent a significant opportunity. Offering a sovereign, predictable, and compliant storage solution is a powerful differentiator. Impossible Cloud is partner-ready, providing the tools for success. With our new UK distributor, Northamber plc, access for UK resellers is more streamlined than ever. Predict able margins are built-in, as there are no egress or API fees to erode profitability. The multi-tenant console, full API/CLI automation, and simple onboarding process enable partners to scale their Backup-as-a-Service (BaaS) and archiving offerings quickly. This allows partners to build services that are more competitive than typical Azure storage UK providers.
Our partner program is designed for growth and simplicity:
Guaranteed margins with a zero-egress-fee pricing model.
A multi-tenant console with robust IAM, RBAC, and MFA controls.
Full automation capabilities via a 100% S3-compatible API and CLI.
Dedicated support for fast onboarding, completed in under 24 hours.
Joint marketing and sales support through our UK distribution channels.
This approach empowers our partners to deliver true data sovereignty and value to their clients.
More Links
German Data Protection Conference provides insights into cloud services from the perspective of German data protection authorities.
FAQ
What is the biggest limitation of using US-based cloud storage in the UK?
The primary limitation is legal and regulatory. The US CLOUD Act exposes your UK-stored data to US jurisdiction, creating a compliance conflict with UK GDPR and preventing true data sovereignty. This is a risk that cannot be mitigated by simply choosing a UK-based data centre from a US provider.
How does Impossible Cloud address the cost limitations of other providers?
Impossible Cloud offers a transparent and predictable pricing model with no egress fees, no API call costs, and no minimum storage durations. This eliminates the surprise bills common with hyperscalers and provides our customers and partners with stable, predictable margins.
Is Impossible Cloud's storage S3 compatible?
Yes, we offer full S3 API compatibility. This ensures your existing applications, scripts, and backup tools continue to work without any code rewrites, minimizing migration risk and protecting your past technology investments.
How does your architecture help with ransomware protection?
Our platform features Immutable Storage with Object Lock, which prevents data from being altered or deleted for a set period. Combined with our 'Always-Hot' architecture for instant data access, this provides a highly resilient defence against ransomware, allowing for rapid and reliable recovery.
How does Impossible Cloud help UK businesses comply with the EU Data Act?
Our business model is already aligned with the core principles of the EU Data Act. By having no egress fees or other switching charges, we provide the data portability and freedom from lock-in that the regulation mandates, ensuring you are compliant by design.
Who is your UK distributor for MSPs and resellers?
Our official UK distributor is Northamber plc. They provide local access and support for our channel partners, including MSPs, resellers, and system integrators across the United Kingdom.
