Hi @Bhupesh Kamalakar Patil ,
the Azure Backup Policy defines 2 aspects of the Azure Backup:
Schedule -> How often a backup will be created. This will affect the RPO (Recovery Point Objective) and RTO (Recovery Time Objective) requirements of your backup strategy.
RPO: Maximum of data that can be "lost" between lost of the data and the last available backup. For instance if you create a backup just once a day the RPO might be 23 hours and 59 minutes of data loss.
RTO: Maximum time you need to restore the data from a backup.
Retention -> How long will the created backup available for restore.
The retention time could by "multiple days", "multiple weeks", "multiple months" or "multiple years". The longer the retention time to more space the backups require. The advantage of a longer retention time is older backups are available.
Source: Backup Policy considerations
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Regards
Andreas Baumgarten