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IT technician reviewing Veeam backup configurations with Impossible Cloud storage targets in a modern MSP office.

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IT technician reviewing Veeam backup configurations with Impossible Cloud storage targets in a modern MSP office.

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IT technician reviewing Veeam backup configurations with Impossible Cloud storage targets in a modern MSP office.

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Secure MSP Margins and Sovereignty with the Right Veeam Backup Target Cloud Storage

24.07.2025

11

Minutes

Thomas Demoor

CTO Impossible Cloud

24.07.2025

24.07.2025

11

Minutes

Thomas Demoor

CTO Impossible Cloud

MSPs face a dual threat: unpredictable cloud fees eroding their margins and complex data sovereignty laws creating compliance risks. A purpose-built Veeam backup target MSP cloud storage solves both, offering a path to predictable profitability and guaranteed EU data residency.

The topic briefly and concisely

Choose a European-owned cloud provider to ensure true data sovereignty and eliminate risks from foreign laws like the US CLOUD Act.

Utilize S3 Object Lock on your Veeam backup target to create immutable backups, making them invulnerable to ransomware encryption or deletion.

Select a cloud storage partner with a zero-egress, zero-API-fee model to achieve predictable costs and protect MSP profit margins.

For Managed Service Providers, offering Veeam backup services should be a profitable, streamlined operation. Yet, many find themselves battling volatile costs from egress fees and API calls, which account for nearly 50% of cloud bills. Simultaneously, the extraterritorial reach of laws like the US CLOUD Act creates a significant compliance burden, even when data is stored in EU data centers. This article outlines a strategic approach for selecting a Veeam backup target MSP cloud storage that is predictable by design. We will explore how a European-owned and operated cloud provider delivers not just cost control but also the digital sovereignty required under GDPR and NIS-2, turning compliance into a competitive advantage.

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Achieve True Digital Sovereignty and Mitigate CLOUD Act Risks

Storing data within an EU data center is no longer a guarantee of sovereignty. The US CLOUD Act of 2018 allows U.S. authorities to compel American companies to provide data, regardless of where it is stored globally. This puts EU data managed by U.S.-owned cloud providers in a precarious legal position, creating a direct conflict with GDPR principles. For MSPs, this introduces a major compliance risk for their clients' sensitive backup data.

A truly sovereign cloud is owned and operated by a European entity, exclusively within certified EU data centers. This design ensures that your data is governed solely by EU law, completely removing exposure to foreign statutes. Choosing an EU-based provider is a necessity for guaranteed data protection. Impossible Cloud provides this legal certainty with country-level geofencing, ensuring data stays within predefined regions under EU rules. This approach provides a clear answer to the 90% of EU decision-makers who demand European solutions for critical infrastructure. Learn more about our Veeam Cloud Connect solutions.

This jurisdictional clarity is the foundation of a secure and compliant backup strategy for any MSP.

Fortify Veeam Backups Against Ransomware with Immutable Storage

Ransomware attacks increasingly target backup repositories first to eliminate recovery options, succeeding in 96% of incidents. Traditional backups can be altered or deleted by attackers with stolen credentials, rendering them useless. A modern defense requires a modern Veeam backup target MSP cloud storage that supports immutability through S3 Object Lock. This feature creates a Write-Once-Read-Many (WORM) state for backup files.

Once written, data cannot be modified or deleted by anyone—not even an administrator—until a predefined retention period expires. This makes your Veeam backups untouchable by ransomware. This storage-level lock guarantees that you always have a clean, uncorrupted copy of your data for restoration, effectively neutralizing the primary leverage of attackers. Impossible Cloud integrates this capability seamlessly, providing a last line of defense for your clients' data. Explore our object storage solutions.

With immutable backups, recovery is no longer a question of if, but how fast.

Eliminate Unpredictable Costs and Stabilize MSP Margins

For 56% of European organizations, cloud storage spending exceeded budgets last year, largely due to unpredictable fees. Egress charges and API request costs can account for up to 50% of a total cloud bill, making it impossible for MSPs to forecast expenses and protect their margins on Backup-as-a-Service (BaaS) offerings. This volatility directly threatens profitability and complicates client billing. A predictable cost model is essential for sustainable growth.

Impossible Cloud was built to solve this exact problem with a transparent pricing model. There are zero egress fees, zero API call costs, and no minimum storage durations. This approach provides MSPs with a flat, predictable cost structure based solely on the amount of storage used. This allows for stable, defensible margins and simplified, transparent pricing for your own customers. Our pricing model comparison shows the difference.

Here is how this model directly benefits MSPs:

  • Guaranteed Margins: Price your BaaS offerings confidently with no surprise fees eating into your 30% profit margin.

  • Simplified Billing: Offer clients straightforward, all-inclusive pricing without complex fee structures.

  • Encouraged Restores: Conduct regular disaster recovery tests without fear of incurring hundreds in egress costs.

  • No Lock-In: The EU Data Act mandates portability, and our model supports it by removing financial barriers to switching.

This economic clarity transforms cloud storage from a variable operational expense into a predictable business asset.

Leverage Enterprise-Grade S3 Compatibility for Seamless Integration

Adopting a new cloud storage target should not require a complete overhaul of your existing backup infrastructure. Full S3 API compatibility is critical for a seamless transition, ensuring that all your current tools, scripts, and applications continue to function without modification. This protects your past investments in automation and training, minimizing migration risk and operational disruption for your team of 10 engineers. Many providers claim S3 compatibility, but true compatibility extends to advanced features.

Impossible Cloud offers full S3 API compatibility that supports not only basic operations but also advanced capabilities like versioning, lifecycle management, and event notifications. This ensures 100% of your Veeam workflows operate without code rewrites. Whether you are using Veeam's Direct-to-Object functionality or a Scale-Out Backup Repository (SOBR), the integration is native and straightforward. Our platform is engineered for consistency and availability, ensuring predictable latencies for both backup and restore operations. Discover our Veeam-ready solutions.

This deep compatibility ensures your operations remain efficient and scalable from day one.

Future-Proof Your Services with EU Data Act and NIS-2 Readiness

The European regulatory landscape is constantly evolving, and your choice of cloud provider directly impacts your ability to stay compliant. Two key regulations, the EU Data Act and NIS-2, place new demands on data handling and security. The EU Data Act, applicable from September 2025, mandates data portability to prevent vendor lock-in, a principle already built into our no-egress-fee model. This ensures you can offer your clients a real exit strategy, a key competitive advantage.

The NIS-2 Directive requires stringent, continuous security processes, including supply-chain assurance and vulnerability management. A compliant Veeam backup target MSP cloud storage must have these processes baked into its operations. Impossible Cloud's architecture is built on these principles, with multi-layer encryption, IAM with MFA/RBAC, and an infrastructure that eliminates single points of failure. We provide the security and compliance foundation MSPs need to meet their own NIS-2 obligations. Read more on secure storage for service providers.

Choosing a partner with built-in regulatory readiness simplifies your compliance journey.

Implement a Resilient Veeam Backup Strategy: A 4-Step Checklist

Selecting the right Veeam backup target requires a methodical approach that balances cost, performance, and compliance. For MSPs, getting this decision right is critical for service quality and profitability. Follow these four steps to evaluate potential cloud storage partners.

  1. Verify Provider Jurisdiction: Confirm the cloud provider is a European legal entity with data centers exclusively in the EU to eliminate CLOUD Act exposure and ensure GDPR compliance.

  2. Confirm Native Object Lock Support: Ensure the provider offers storage-level immutability via S3 Object Lock to make your Veeam backups ransomware-proof.

  3. Analyze the Complete Cost Model: Look beyond the per-GB price. Scrutinize for hidden costs like egress fees, API charges, and minimum retention periods that impact your total cost of ownership by over 40%.

  4. Conduct a Proof-of-Concept Restore: Perform a test restore of a 1 TB dataset to validate performance, measure latency, and confirm the process works seamlessly with your Veeam environment.

This structured evaluation ensures your chosen partner truly delivers on its promises of security and predictability.

Build a Sovereign and Profitable Backup Service

Content


For MSPs, the ideal Veeam backup target MSP cloud storage is one that transforms operational burdens into strategic advantages. By choosing a sovereign-by-design platform with a predictable cost model, you eliminate compliance risks and margin uncertainty in one move. Impossible Cloud provides the enterprise-grade, S3-compatible foundation needed to build resilient, compliant, and profitable BaaS offerings. Our partner-ready console with multi-tenant management and API-driven automation simplifies onboarding, which now has expanded access through distributors like api in Germany and Northamber plc in the UK. Ready to build a better backup service? Talk to an expert to see how our predictable cloud storage can secure your margins and your clients' data.


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FAQ

Is Impossible Cloud fully compatible with Veeam?

Yes, Impossible Cloud offers full S3 API compatibility, ensuring seamless integration with Veeam Backup & Replication. It supports all key features, including Direct-to-Object storage, Scale-Out Backup Repositories (SOBR), and S3 Object Lock for immutability.



How does Impossible Cloud's pricing model help my MSP business?

Our pricing model is designed for predictability. We charge only for the storage you use, with no fees for data egress or API requests and no minimum storage durations. This allows you to set stable pricing for your clients and guarantees your profit margins.



Can I use Impossible Cloud to meet GDPR and NIS-2 requirements?

Yes. As a European company with data centers only in Europe, our services are sovereign by design, helping you meet GDPR data residency requirements. Our robust security architecture, including encryption and IAM, provides a strong foundation for your NIS-2 compliance strategy.



What does 'Always-Hot' storage mean for my Veeam restores?

Our 'Always-Hot' object storage model means all your Veeam backup data is immediately accessible for restores. There are no delays or extra fees associated with retrieving data from slower, colder storage tiers, ensuring you can meet your Recovery Time Objectives (RTOs) without surprises.



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