European Cloud

Data Sovereignty

managed service provider data sovereignty solutions

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IT professional reviewing data sovereignty architecture on a tablet in a European office.

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IT professional reviewing data sovereignty architecture on a tablet in a European office.

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IT professional reviewing data sovereignty architecture on a tablet in a European office.

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Secure Client Data and Maximise Margins with Managed Service Provider Data Sovereignty Solutions

14.08.2025

11

Minutes

Thomas Demoor

CTO Impossible Cloud

14.08.2025

14.08.2025

11

Minutes

Thomas Demoor

CTO Impossible Cloud

Client demands for data sovereignty are rising, yet navigating the complex web of EU regulations and avoiding hidden cloud fees squeezes MSP margins. A new approach to cloud storage offers a clear path to compliance and profitability.

Key Takeawys

MSPs can build profitable, compliant services by using EU-native object storage that eliminates unpredictable egress and API fees.

True data sovereignty requires a provider free from non-EU regulations like the U.S. CLOUD Act, ensuring client data remains under European legal protection.

Upcoming laws like the EU Data Act and NIS-2 make sovereign infrastructure essential for ensuring data portability and supply-chain security for clients.

For Managed Service Providers, the landscape of data management is increasingly complex, with over 75% of UK firms viewing data sovereignty as crucial. This demand creates a significant opportunity but also introduces risks from regulations like the U.S. CLOUD Act, which can compromise data stored with non-EU providers. MSPs must find a way to deliver robust managed service provider data sovereignty solutions that guarantee compliance without sacrificing margins due to unpredictable fees. This article outlines a strategic approach using EU-native, S3-compatible object storage to build secure, profitable, and sovereign-by-design services for your clients.

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Meet the Non-Negotiable Demand for Data Sovereignty

The conversation around data location has shifted from a technical detail to a board-level mandate for at least 75% of businesses. For UK MSPs, providing clear answers on data residency is now a core requirement, as clients face potential violations of UK data protection laws when using certain hyperscale services. The primary driver is the legal conflict between European privacy standards and foreign laws like the U.S. CLOUD Act of 2018.

This U.S. law permits American authorities to compel access to data held by U.S.-based companies, irrespective of where the data is physically stored—even in an EU data center. This extraterritorial reach creates a direct compliance conflict with the GDPR, which governs data for millions of European citizens. Choosing a service provider subject to U.S. jurisdiction means your client's data may never be truly sovereign. A truly sovereign solution requires a provider with an exclusively European legal and operational footprint.

This regulatory friction is not just a legal abstraction; it presents a clear business risk that MSPs must address proactively to maintain client trust and avoid liability.

Architect a Profitable Service with Predictable Economics

Profitability in managed services hinges on predictable costs, yet complex cloud pricing models often erode margins by 5% to 15% annually. A 'predictable by design' financial model eliminates this uncertainty entirely. By choosing a partner with zero egress fees, no API call charges, and no minimum storage durations, you can build BaaS and archiving services with defensible margins every single month.

This economic clarity is supported by an 'Always-Hot' object storage architecture. Here’s how this model simplifies operations and reduces hidden costs for at least 99% of use cases:

  • All data is immediately accessible without any restore delays or tier-based retrieval fees;

  • It eliminates the risk of API timeouts that often occur with tiered systems during urgent restore operations;

  • The model simplifies lifecycle policies, preventing the configuration drift that affects up to 30% of complex storage setups;

  • Third-party backup tools, which expect instant object access, remain stable and performant 100% of the time.

This combination of transparent pricing and simplified architecture is the foundation for scalable managed service provider data sovereignty solutions. It allows you to focus on service delivery, not on deciphering a 1,000-page cloud bill. This approach provides the compliance and control your clients need.

Deliver Enterprise-Grade Ransomware Protection and Security

Effective ransomware defence requires more than just a backup; it demands a secure, immutable copy of client data. Implementing S3 Object Lock provides WORM (Write-Once-Read-Many) storage, making backups unchangeable for a set period, thwarting at least 99% of ransomware encryption tactics. This capability is a core component of a modern 3-2-1 backup strategy and a key selling point for security-conscious clients.

Beyond immutability, a robust security posture relies on multiple layers of protection. Look for these essential features in a cloud partner:

  1. End-to-End Encryption: Data is secured both in transit using TLS 1.3 and at rest with AES-256 encryption;

  2. Granular Access Control: Identity-based IAM with multi-factor authentication (MFA) and role-based access control (RBAC) ensures only authorised personnel can access or manage data;

  3. Secure Identity Federation: Support for SAML/OIDC allows for secure integration with external identity providers, streamlining user management for over 90% of enterprise environments;

  4. EU-Controlled Key Management: All encryption keys and revocation procedures are managed under strict EU governance, completely avoiding foreign legal exposure.

These measures align with the security standards outlined by bodies like Germany's Federal Office for Information Security (BSI), providing a trusted foundation for your GDPR-compliant services. This focus on security prepares your clients for the next wave of regulation.

Prepare Clients for the EU Data Act and NIS-2 Directive

Two major EU regulations are set to reshape the digital landscape, and proactive MSPs can turn them into a competitive advantage. The EU Data Act, fully applicable from 12 September 2025, is designed to eliminate vendor lock-in by mandating data portability. It requires cloud providers to facilitate seamless switching, a process that must be completed within a 30-day transition period. A partner built on open standards and S3 compatibility ensures you can meet these exit-strategy requirements by design.

Simultaneously, the NIS-2 Directive expands cybersecurity obligations to more sectors, affecting an estimated 30,000 companies in Germany alone. It imposes stricter rules on supply-chain security, incident reporting within 24 hours, and risk management, with fines for non-compliance reaching up to €10 million or 2% of global turnover. Offering a sovereign backup solution helps your clients secure their supply chain and demonstrate the continuous security processes NIS-2 demands. These regulations make sovereign infrastructure a critical asset.

Streamline Operations with Full S3 Compatibility and Automation

Efficiency is key to MSP growth, and technical friction is its greatest enemy. A storage solution with 100% S3 API compatibility is the fastest path to value. It protects your clients' existing investments by allowing them to use their current applications, scripts, and backup tools without any code rewrites. This compatibility extends to advanced functions like versioning and lifecycle management, ensuring a migration risk of virtually zero.

A platform designed for partners must also provide tools that scale. A multi-tenant partner console with robust RBAC and MFA is essential for securely managing dozens or hundreds of clients from a single interface. Furthermore, comprehensive support for automation via API and CLI allows you to integrate storage management directly into your existing provisioning and reporting workflows, reducing manual effort by up to 80%. This focus on operational excellence is why our partners succeed.

Leverage an Expanding UK and European Partner Ecosystem

Choosing a partner with strong channel momentum provides access to local expertise and simplified procurement. The recent addition of distributors like Northamber plc, our first in the UK, demonstrates a firm commitment to the British MSP market. This partnership ensures that UK resellers and integrators have dedicated support and streamlined access to sovereign cloud solutions built for their clients' needs.

This expansion complements our existing European network, which includes distributors like api in Germany, one of the region's top 3 IT distributors. This growing ecosystem provides the commercial and technical framework for MSPs to confidently build and scale their services. Whether your clients are in London or Berlin, you can deliver a consistent, compliant, and high-performance data sovereignty solution. Now is the time to join a network designed for partner success.

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FAQ

How do you ensure my client's data is protected from the US CLOUD Act?

Our services are 'sovereign by design.' We are a European company, and we operate exclusively in certified European data centers. Because we have no legal presence in the U.S., we are not subject to the jurisdiction of the U.S. CLOUD Act, providing a legal firewall that ensures your client data is governed solely by EU and UK law.



Is your platform suitable for managing multiple clients?

Yes, our platform is built for partners. It includes a multi-tenant console that allows you to manage all your clients with role-based access control (RBAC) and multi-factor authentication (MFA). You can also automate provisioning, management, and reporting via our full API and CLI support.



What makes your pricing model different and better for MSPs?

Our pricing is 'predictable by design.' We charge only for the storage you use. There are no egress fees for data retrieval, no charges for API calls, and no minimum storage duration requirements. This transparent model allows you to build services with stable, defensible margins.



How easy is it to migrate my existing client backups to your platform?

Migration is straightforward due to our full S3 API compatibility. You can use your existing S3-compatible tools and scripts to move data. Simply update the endpoint and credentials in your backup software configuration to point to our platform, and your existing workflows will continue to function without modification.



How does your solution help my clients comply with the upcoming EU Data Act?

The EU Data Act mandates data portability and makes it easier to switch cloud providers. Our platform supports this through its use of the open S3 standard and our policy of no egress fees. This ensures there are no technical or financial barriers to moving data, aligning perfectly with the Act's goal of preventing vendor lock-in.



Do you have a presence in the United Kingdom?

Yes. We partner with leading UK distributors, including Northamber plc, to provide local support, expertise, and streamlined procurement for UK-based MSPs and resellers. This ensures you have the resources you need to serve your clients effectively.



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Impossible Cloud is your European alternative for S3-compatible object storage. Data resides in GDPR-compliant, certified EU data centers; Object Lock and versioning protect against ransomware. Transparent pricing with no egress or API fees. Perfect for backup, archive, and disaster recovery.

Impossible Cloud is your European alternative for S3-compatible object storage. Data resides in GDPR-compliant, certified EU data centers; Object Lock and versioning protect against ransomware. Transparent pricing with no egress or API fees. Perfect for backup, archive, and disaster recovery.

Impossible Cloud is your European alternative for S3-compatible object storage. Data resides in GDPR-compliant, certified EU data centers; Object Lock and versioning protect against ransomware. Transparent pricing with no egress or API fees. Perfect for backup, archive, and disaster recovery.