Cloud Storage
Scalable Storage
MSP tiered storage pricing
Why MSP Tiered Storage Pricing Erodes Margins and How to Fix It
Complex tiered storage models create unpredictable costs that damage MSP profitability. A transparent pricing model without egress fees or API call charges offers a stable foundation for growth. Discover a partner-ready approach to sovereign cloud storage.
Key Takeaways
Complex MSP tiered storage pricing models introduce hidden egress and API fees that erode profit margins by up to 15%.
An 'Always-Hot' storage model with zero hidden fees provides predictable costs, enabling stable and defensible margins for BaaS and archiving.
Storing data in geofenced, EU-only data centers ensures GDPR compliance, avoids CLOUD Act exposure, and offers a strong competitive advantage.
For Managed Service Providers, predictable margins are the bedrock of a sustainable business. Yet, conventional MSP tiered storage pricing models introduce significant financial uncertainty through hidden costs like egress fees and API call charges. This complexity not only complicates billing but also creates risk when clients need to restore data urgently. An 'Always-Hot' storage architecture, where all data is immediately accessible, removes these challenges. It provides a transparent, predictable cost structure, enabling MSPs to build profitable, compliant, and resilient backup and archiving services for their clients.
Deconstruct the Hidden Costs in Tiered Storage Models
Traditional tiered storage models appear cost-effective initially, segmenting data into hot, cool, and archive layers. However, MSPs often face at least 3 unexpected cost drivers that erode their margins. These include egress fees for data retrieval, API call charges for management, and restore delays that can last hours.
Many MSPs find their margins shrink by 15% due to these unbilled operational costs. This financial instability makes it difficult to provide competitive quotes for Backup-as-a-Service (BaaS) offerings. The model's complexity also clashes with the need for rapid restores, a core requirement for effective ransomware protection strategies.
Ultimately, a pricing structure filled with variables puts the MSP's profitability in direct conflict with the client's need for data access. This financial friction is driving a shift toward more transparent economic models.
Adopt a Predictable, 'Always-Hot' Storage Architecture
An 'Always-Hot' object storage model simplifies operations by making 100% of data instantly accessible. This approach eliminates the financial penalties associated with data retrieval, as there are zero egress fees or API call costs. For MSPs, this translates directly into predictable, defensible margins for every client.
This model is predictable by design, removing the need for complex lifecycle policies that often fail during urgent restore scenarios. Here is how it directly benefits MSPs:
Guarantees stable costs for BaaS and archiving services.
Eliminates surprise fees, building trust with clients.
Reduces operational overhead by removing tier management.
Ensures all data is available in milliseconds for recovery.
By moving away from fragile tiering, MSPs can focus on service delivery instead of complex cost management. This shift is foundational for building scalable and profitable cloud services.
Leverage EU Sovereignty as a Competitive Advantage
A strong majority of EU decision-makers now demand European solutions for their critical data infrastructure. Storing data exclusively in certified European data centers provides a direct answer to these sovereignty concerns. This approach ensures compliance with GDPR and avoids exposure to extra-territorial laws like the US CLOUD Act.
Geofenced storage keeps 100% of client data within a predefined country under strict EU rules. This is not just a compliance checkbox; it is a powerful selling point for clients in regulated industries like finance and healthcare. Our white-label storage solutions allow you to extend this benefit directly to your customers.
With the EU Data Act coming into force from September 2025, guaranteed data portability becomes another legal requirement. A sovereign-by-design platform prepares your services for this next wave of regulation.
Utilize Partner-Ready Tools for Efficient Management
Modern MSPs require tools built for multi-tenant environments from day one. A partner-ready console should provide robust features to manage multiple clients securely and efficiently. This reduces administrative overhead by over 30% compared to single-tenant systems.
Key features for effective multi-tenant management include:
Granular Role-Based Access Control (RBAC) to define permissions.
Mandatory Multi-Factor Authentication (MFA) for all accounts.
Automation capabilities via a full-featured API and CLI.
Centralized reporting for billing and usage tracking.
These tools, combined with full S3-API compatibility, ensure your existing scripts and backup software work without modification. This seamless integration protects your past investments and allows for fast client onboarding, a key factor for scaling your recurring revenue streams.
Strengthen Ransomware Defense with Immutable Storage
Ransomware remains a top threat, with recovery costs averaging over 1.5 million euros for affected businesses. Immutable backups using S3 Object Lock create a tamper-proof copy of data that cannot be altered or deleted by attackers. This provides a reliable last line of defense for your clients.
Implementing immutable storage can reduce data recovery times by up to 96%. It ensures that even if primary systems are compromised, a clean, unchangeable data version is available for restoration. This capability is essential for meeting the business continuity requirements of regulations like NIS-2.
By integrating this feature into your standard backup offerings, you provide a tangible security upgrade that clients value. It transforms your service from simple storage to a core component of their cyber resilience strategy.
Expand Your Reach with a Growing Partner Ecosystem
An effective channel strategy relies on strong local distribution and deep software integrations. Our 2025 milestones include partnerships with key distributors like api in Germany and our first UK distributor, Northamber plc. These relationships provide local access and support for hundreds of resellers and MSPs.
On the technology front, collaborations with leading backup ISVs like NovaBackup ensure out-of-the-box compatibility and simplified compliance. This ecosystem approach means you can deploy solutions faster, backed by a supply chain that understands your needs. Choosing a platform with a robust partner network is a critical step in scaling your MSP storage revenue.
This growing ecosystem provides the commercial and technical foundation needed to win larger and more complex deals.
More Links
German Federal Statistical Office (Destatis) provides press releases and statistical data relevant to the German economy.
Bitkom offers their Cloud Report 2024, detailing cloud computing adoption and trends in Germany.
PwC provides insights into cloud cost optimization and FinOps strategies.
German Data Protection Conference (Datenschutzkonferenz) offers a document on data protection issues related to cloud computing, crucial for compliance.
KPMG presents their Cloud Monitor 2025, offering insights into cloud adoption trends.
Deloitte Germany shares perspectives on transforming manufacturing with cloud technology.
acatech (German National Academy of Science and Engineering) provides a publication on the future of business clouds in Germany, covering requirements and competition.
EuroCloud Deutschland serves as a valuable resource for information on cloud providers, services, and industry trends in the German market.
FAQ
What makes your pricing model predictable for MSPs?
Our pricing model is predictable because it eliminates variable costs. We charge only for the storage capacity used, with no egress fees, no API request charges, and no minimum storage durations. This transparent approach allows MSPs to set stable pricing and protect their margins.
Is your platform fully S3 compatible?
Yes, we offer full S3-API compatibility. This ensures that your existing applications, backup tools (like Veeam or NovaBackup), and management scripts work seamlessly without any code rewrites, minimizing migration risk and protecting your technology investments.
How do you ensure compliance with GDPR and other EU regulations?
We are a European company operating exclusively in certified European data centers. Our platform is sovereign by design, offering country-level geofencing to keep data within specific EU regions. This architecture ensures GDPR compliance and helps clients meet requirements from NIS-2 and the EU Data Act.
What tools do you provide for multi-tenant management?
Our partner console is built for MSPs and features multi-tenant management with Role-Based Access Control (RBAC), MFA, and automation through a comprehensive API and CLI. It also includes centralized reporting to simplify client billing and resource monitoring.
Can I avoid vendor lock-in?
Absolutely. We are built on open standards, including full S3 API compatibility. The upcoming EU Data Act mandates data portability, and our platform is designed to facilitate easy data export. Our transparent pricing with no egress fees ensures you can move data freely without financial penalties.
How can I get started?
You can start with a free trial to test our platform's performance and S3 compatibility with your existing tools. We also offer personalized demos with our experts to discuss your specific use cases for backup, disaster recovery, or archiving. Contact us to learn more.
