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IT professional inspecting server infrastructure for ransomware protection in a secure data center.

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IT professional inspecting server infrastructure for ransomware protection in a secure data center.

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IT professional inspecting server infrastructure for ransomware protection in a secure data center.

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Achieve Sovereign Ransomware Protection with Veeam Service Provider Secure Storage

17.07.2025

11

Minutes

Thomas Demoor

CTO Impossible Cloud

17.07.2025

17.07.2025

11

Minutes

Thomas Demoor

CTO Impossible Cloud

MSPs face a triple threat: complex EU regulations, unpredictable cloud costs, and the constant risk of ransomware. A new approach to Veeam service provider secure storage is required to ensure both compliance and profitability.

Key Takeawys

Achieve digital sovereignty and GDPR compliance by using Veeam service provider secure storage located exclusively in certified EU data centers.

Protect backups from ransomware and accidental deletion by leveraging S3 Object Lock for immutable, WORM-compliant storage.

Build profitable MSP services with predictable margins by choosing a storage provider with no egress fees, API call costs, or minimum storage durations.

For Managed Service Providers, delivering Veeam backup services is a balancing act of performance, security, and cost. Many EU decision-makers now demand European solutions for their critical data infrastructure. This shift requires a move away from complex pricing models that erode margins. True digital sovereignty, combined with robust ransomware protection and predictable economics, is the foundation for a successful 2025 strategy. This article outlines a blueprint for building a secure, compliant, and profitable Veeam backup service using sovereign-by-design object storage.

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Establish Digital Sovereignty for Veeam Backups

A majority of EU businesses now list EU data residency as a primary criterion for cloud services. This demand is driven by regulations like GDPR, which governs all processing of personal data for EU citizens. Storing Veeam backups within certified European data centers provides a direct answer to these compliance needs. It ensures data is governed exclusively by EU law, avoiding CLOUD Act exposure entirely.

For MSPs, offering a sovereign storage solution is a significant competitive advantage. It addresses the 75% of countries that have implemented some form of data residency requirements. Using geofenced storage guarantees that client data remains within a predefined country, like Germany. This capability is critical for clients in regulated industries such as finance and healthcare.

The core benefit is providing clients with verifiable EU legal certainty for their backup data. This builds trust and simplifies their compliance audits significantly. Choosing a Veeam backup storage provider committed to these principles is no longer optional. This focus on sovereignty sets the stage for a more resilient security posture.

Architect a Resilient and Predictable Storage Fabric

Ransomware attacks increasingly target backup repositories to guarantee a payout. In fact, 98% of organizations now have a ransomware response playbook. A key defense is using immutable storage with S3 Object Lock. This feature makes backup files unchangeable for a set period, rendering ransomware encryption useless against them.

Many cloud platforms rely on complex storage tiers, which can introduce restore delays and API timeouts. An “Always-Hot” architecture eliminates this fragility, ensuring all Veeam backups are instantly accessible. This model simplifies operations for the 52% of organizations working to improve alignment between IT and security teams. It guarantees consistent performance without hidden fees for data retrieval.

Here is how S3 compatibility strengthens your Veeam deployment:

  • Full API Support: Ensures your existing Veeam jobs, scripts, and management tools work without any changes, protecting past investments.

  • Immutable Backups: Leverage S3 Object Lock to create WORM-compliant (Write-Once-Read-Many) backup copies that cannot be altered or deleted.

  • Simplified Management: A single, high-performance storage tier reduces the operational overhead of managing complex lifecycle policies.

  • No Code Rewrites: Protects your operational workflows and minimizes migration risk with 100% compatible endpoints.

This architecture delivers predictable recovery times, a critical factor when 69% of organizations' confidence in their preparedness drops after an attack. With a resilient foundation in place, MSPs can build a more profitable service model.

Build Profitable MSP Services with a Predictable Economic Model

Unpredictable costs are a major challenge, with businesses often spending 35% more on cloud resources than necessary. A primary cause is egress fees and API call charges, which directly impact MSP margins. Adopting a Veeam backup target with a zero-rate pricing model for these items provides cost certainty. This allows you to build BaaS and DRaaS offerings with stable, defensible margins.

Effective multi-tenant management is essential for MSPs to operate efficiently. A partner-ready console should provide robust Identity and Access Management (IAM) with MFA and RBAC. This allows for the secure separation of client data while simplifying administration. Automation via a full-featured API and CLI is also critical for scaling operations and integrating with existing billing systems.

The ability to offer fixed-cost backup storage transforms your service from a variable expense into a predictable revenue stream. This economic stability is a cornerstone of a scalable Veeam service provider business. It also aligns perfectly with new EU regulations promoting greater transparency and portability.

Ensure Readiness for Evolving EU Data Regulations

The EU regulatory landscape continues to evolve beyond GDPR. The NIS-2 Directive, which took effect in October 2024, imposes stricter cybersecurity measures on a wider range of sectors. Cloud providers are categorized as 'essential' entities and must demonstrate robust risk management and incident reporting, often within a 24-hour window.

Furthermore, the EU Data Act applies from September 2025, creating new rules for data portability. It mandates that cloud providers must facilitate seamless data transfers, allowing users to switch providers without lock-in. This includes the transfer of metadata and configurations, reinforcing the need for open, S3-compatible standards. A provider that already offers zero egress fees is perfectly aligned with this future.

Key compliance features to look for in a Veeam service provider secure storage solution include:

  1. Certified EU Data Centers: Operation exclusively within ISO 27001 and SOC 2 certified facilities in the EU.

  2. Country-Level Geofencing: The ability to restrict data storage to a specific EU country to meet sovereign requirements.

  3. Verifiable Immutability: S3 Object Lock support to meet retention policies for regulations like SEC 17a-4(f) and FINRA 4511.

  4. Transparent Data Processing: Clear contractual terms that grant the data controller exclusive ownership and control of all stored data.

Proactive alignment with these regulations turns compliance from a burden into a competitive advantage. This readiness provides a clear path for scaling your services across the European market.

Implement a Secure Veeam Storage Strategy

Deploying a new secure storage target for Veeam can be accomplished in just a few steps. The first is to configure the S3-compatible object storage repository within the Veeam Backup & Replication console. This process requires only three pieces of information: the service point URL, a region, and the access credentials. Full S3 compatibility ensures this takes less than 5 minutes.

Next, create a new backup job or modify an existing one to target the new repository. For enhanced ransomware protection, enable immutability in the job settings and define a retention period. This action activates S3 Object Lock on the storage side, safeguarding your backup files. It is a core component of a modern 3-2-1-1-0 or 4-3-2 backup strategy.

A critical final step is to perform a test restore, which 98% of organizations with a response playbook should be doing regularly. An Always-Hot storage model guarantees that your data is immediately available for recovery exercises without any tier-restore delays. This simple implementation process makes it easier for MSPs to onboard new clients quickly. This efficiency is supported by a growing distribution network.

Leverage an Expanding European Partner Ecosystem

To better serve the channel, local access and support are essential. The addition of new distribution partners across Europe simplifies procurement and onboarding for MSPs and resellers. In 2025, this ecosystem expanded with key partnerships. This includes the distributor api in Germany and the first UK distributor, Northamber plc.

These partnerships provide thousands of resellers with direct access to sovereign, predictable cloud storage. This expansion makes it easier for MSPs to procure Veeam-ready cloud storage that meets local data residency and compliance needs. It reflects a commitment to a 100% channel-focused model.

This growing network empowers partners to build competitive, high-margin services backed by local expertise. With a strong ecosystem and a clear value proposition, you have all the tools needed to succeed. The next step is to see it in action.

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FAQ

What makes this a 'secure storage' solution for a Veeam service provider?

The solution is secure due to a multi-layered approach: data is stored in ISO 27001-certified EU data centers, protected by multi-layer encryption in-transit and at-rest, and made immutable with S3 Object Lock for ransomware protection. Granular IAM controls with MFA/RBAC further secure access for both MSPs and their tenants.



How does your storage model help with EU Data Act compliance?

Our model is designed for the EU Data Act, which mandates data portability. By using the standard S3 API and having a strict policy of zero egress fees, we eliminate the technical and financial barriers to switching providers, ensuring you can move your data freely, in line with the Act's requirements from September 2025.



Can I restrict my client's Veeam backup data to a specific country?

Yes. Our platform offers country-level geofencing, allowing you to create storage buckets that ensure your client's data physically resides within a specific EU country, such as Germany. This is a critical feature for meeting strict data sovereignty requirements for regulated industries.



What is 'Always-Hot' storage and how does it benefit Veeam restores?

'Always-Hot' storage means all data is immediately accessible without any delays from moving data out of an archive or cold tier. For Veeam, this guarantees faster, more predictable Recovery Time Objectives (RTOs) because there are no restore penalties or API timeouts, which can occur with tiered storage models.



How does your pricing model help MSPs increase their margins?

Our pricing is 'predictable by design.' We charge only for the storage you use and have eliminated all egress fees, API call costs, and minimum storage durations. This transparent model removes the variable costs that typically erode MSP margins, allowing you to price your Veeam BaaS and DRaaS offerings more competitively and profitably.



Is it complicated to migrate existing Veeam backups to your platform?

No, migration is straightforward. Because we offer full S3 API compatibility, you can add our storage as a new repository in your Veeam console in minutes. You can then easily copy existing backup chains to the new repository using Veeam's built-in functionality without any complex data transformation.



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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.