Q. What is the difference between installing the Azure Backup agent inside an IaaS VM and using the IaaS VM backup capability?
A. The Azure Backup agent can be installed in any Windows OS (both server and client) and provides the ability to backup and restore files and folders. The IaaS VM backup capability provides the ability to restore the entire IaaS VM. Both capabilities use Azure Backup for the storage of the protected data. The difference is therefore the granularity of the backup and restore with the agent enabling specific data to be protected while the IaaS VM backup protects the entire VM.