Hello @Ekta Bharatkumar Purohit
You can back up your Azure VMs with the Azure Backup service.
Monthly/yearly backup are not supported when backing up with Azure VM extension. Only daily and weekly are supported.
You can set up the policy to retain daily/weekly backups for monthly/yearly retention period.
https://stackoverflow.com/questions/45914855/azure-backup-and-how-retention-policies-are-executed
Backups are stored in a Recovery Services vault with built-in management of recovery points.
As part of the backup process, a snapshot is taken, and the data is transferred to the Recovery Services vault with no impact on production workloads. The snapshot provides different levels of consistency.
Azure Backup also has specialized offerings for database workloads like SQL Server -15 minute RPO (recovery point objective), and allow backup and restore of individual databases.
Here is a process of how Azure Backup completes a backup for Azure VMs
These are the steps to configure monthly Azure VM backup:
- Create a Recovery Services vault
- Modify storage replication to globally redundant storage (GRS), locally redundant storage (LRS) or Zone-redundant storage (ZRS)
- Create a custom backup policy. Enable Retention of monthly backup point for 12 month, configure Retention of weekly backup point to 1 week.
- Add your Virtual Machines into Backup Vault.
https://learn.microsoft.com/en-us/azure/backup/backup-azure-arm-vms-prepare
https://learn.microsoft.com/en-us/azure/backup/backup-azure-vms-introduction