Hi @Manjunath Gogula
You can use a vm with this size and you will have no problem running backup
There others limitations on Family VMs and you can learn more in:
https://azure.microsoft.com/en-us/pricing/details/virtual-machines/series/
More information in Backup Support matrix:
https://learn.microsoft.com/en-us/azure/backup/backup-support-matrix-iaas#supported-backup-actions
Get in touch if you need more help with this issue.
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