- A VM backup extension is deployed (if not already present) to coordinate in-guest tasks required for consistent snapshots.
- On Windows VMs this coordinates with Volume Shadow Copy Service (VSS) for application-consistent backups.
- On Linux VMs it uses pre/post scripts to quiesce applications when needed.
- A backup policy defines schedule and retention (for example, daily at 04:00 UTC retained for 30 days, with additional weekly/monthly/yearly retention points and instant restore snapshot retention).
- At each scheduled backup the backup extension creates snapshots of the VM’s managed disks. Azure Backup then transfers only incremental changed blocks from those snapshots to the Recovery Services vault over HTTPS, minimizing transfer and storage.
- If disks are encrypted (for example using Azure Disk Encryption with keys in Azure Key Vault), Azure Backup coordinates with the key resources so snapshots and restores can be decrypted when required.

- Open the Azure portal, go to Virtual Machines, and select the VM you want to protect (for example, “RSV Demo 1”).
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Backups are stored and managed in a Recovery Services vault. You can:
- Create or open a Recovery Services vault (recommended if you plan to onboard multiple VMs), or
- Enable backup directly from the VM blade for a one-off enablement.
- From the Recovery Services vault, select Backup. For workload type choose “Azure Virtual Machine.” The portal may show options for vault redundancy and enhanced mode. Select or create a backup policy.

- After creating or selecting the policy, add virtual machines to the policy. The portal lists VMs in the same region — select one or more and click OK.

- Recovery Services vault -> Backup Items -> Azure Virtual Machine -> select the VM -> View details -> Backup Now.
- Snapshot creation: the VM extension quiesces applications for application-consistent backups (if requested) and creates disk snapshots.
- Data transfer: incremental changed blocks from those snapshots are sent over HTTPS to the vault.


File-level recovery process
- Select File Recovery from the VM’s backup item.
- Choose a recovery point and download the recovery tool/executable the portal provides.
- Use the temporary password shown in the portal to mount the recovery snapshot.
- Copy the required files from the mounted volume, then unmount when finished.

- Choose a restore point and pick the restore configuration: “Create new” (provision a new VM from the recovery point) or “Replace existing” (replace disks on the running VM).
- Alternatively, restore disks only and select the target resource group and staging location. The operation creates restored managed disks or VHDs, which you can then use to rebuild or repair a VM, or mount to recover files.

- Use a Recovery Services vault per region or per environment according to your organizational isolation and retention needs.
- Assign a backup policy that meets your RPO/RTO requirements and apply it consistently to similar workloads.
- Test restores regularly (both file-level and full VM restores) to validate your recovery procedures.
If you use disk encryption, ensure the Key Vault and access policies are configured so Azure Backup can access keys/secrets for encryption/decryption during backup and restore. Failing to configure Key Vault access can prevent successful restores.