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VAR cloud backup targets
Secure VAR Cloud Backup Targets with EU Sovereignty and Predictable Margins
For VARs, the cloud backup market offers immense opportunity, but unpredictable costs and complex compliance rules create significant risk. A new approach to cloud backup targets is needed to ensure both client data sovereignty and partner profitability.
The topic briefly and concisely
VARs can secure predictable margins by choosing cloud backup targets with a zero-fee model, eliminating unpredictable egress and API call charges that erode profitability.
Ensuring data is stored exclusively in EU data centers with geofencing is critical for meeting GDPR and NIS-2 compliance and protecting clients from CLOUD Act exposure.
Immutable backups using S3 Object Lock provide the strongest defense against ransomware, guaranteeing a clean, unalterable copy of data is always available for recovery.
Value-Added Resellers (VARs) are navigating a landscape where clients demand robust data protection and absolute regulatory compliance. Traditional cloud backup targets often introduce unpredictable costs through egress fees and API call charges, eroding margins by up to 50% in some European markets. Furthermore, ensuring data sovereignty under regulations like GDPR and NIS-2 is a major challenge when relying on non-EU providers. This article outlines how VARs can select cloud backup targets that are sovereign by design, offering the predictable economics and rigorous compliance needed to build a thriving backup-as-a-service (BaaS) business in 2025 and beyond.
Establish Predictable Profitability by Eliminating Hidden Fees
A primary challenge for VARs offering cloud backup is margin erosion from unpredictable fees. Over 56% of European organizations report exceeding their cloud storage budgets, with egress fees and API call charges being major contributors. These costs, which can account for nearly half of a cloud bill, make it difficult to price BaaS offerings competitively and guarantee profits.
A transparent pricing model is the foundation of a profitable partnership. By choosing a cloud backup target with zero egress fees, no API call costs, and no minimum storage durations, VARs can build services with predictable margins. This model transforms billing from a variable risk into a fixed, manageable cost, allowing partners to protect their margins by at least 15%.
This financial predictability is reinforced by new regulations like the EU Data Act, which, from January 2027, will ban switching charges entirely. Aligning with a provider already committed to a zero-fee model positions VARs ahead of the market, offering clients fair terms and building long-term trust. This approach simplifies financial planning for over 70% of IT projects previously delayed by cost uncertainty.
Additional useful links
Wikipedia offers a comprehensive overview of data sovereignty.
EUR-Lex provides the official text of the General Data Protection Regulation (GDPR).
Statista offers statistics and data on cloud computing in Germany.
eco Association provides information and resources related to cloud computing.
FAQ
What is a sovereign cloud backup target?
A sovereign cloud backup target is a storage service that guarantees data is stored, processed, and managed exclusively within a specific legal jurisdiction, such as the European Union. This ensures the data is subject only to local laws like GDPR and is protected from foreign legal access, providing digital sovereignty.
How does S3 Object Lock work?
S3 Object Lock is a feature that allows you to store objects using a write-once-read-many (WORM) model. When you lock an object, it becomes immutable, meaning it cannot be overwritten or deleted for a fixed amount of time or indefinitely. This is a critical tool for ransomware protection and regulatory compliance.
Is your platform compatible with my existing backup software?
Yes. Our platform offers full S3 API compatibility, which means it works out-of-the-box with leading backup tools and applications that use the S3 protocol. You can typically switch to our service by simply changing the endpoint in your software's configuration, with no need for code rewrites.
What does 'no egress fees' mean for my business?
No egress fees means you will not be charged for transferring your data out of our cloud. This allows you to restore data, migrate to another provider, or move data back on-premises without incurring unpredictable costs, leading to a more transparent and predictable total cost of ownership.
How does your platform help with GDPR and NIS-2 compliance?
Our platform helps with compliance by operating exclusively in certified EU data centers, ensuring data residency and sovereignty as required by GDPR. It also incorporates robust security measures, such as multi-layer encryption and immutable storage, which align with the risk management requirements of the NIS-2 Directive.
What is an 'Always-Hot' storage model?
An 'Always-Hot' storage model means all your data is immediately accessible at all times, without any delays or extra fees associated with retrieving data from colder, archival tiers. This simplifies operations, ensures predictable performance, and is ideal for backup and disaster recovery scenarios where fast restores are critical.
