Azure backup options for Server 2012 R2 Essentials

Hello,
I have configured a new on-prem HP server for a very small (5 users) non-profit client. This is a single server environment, and they use Office 365 for email. I have already configured AD Sync between the two with dirsync. I have installed the Azure agent,
and imported the certificate, and I am ready to create a backup set.
This is my first experience with Cloud based server backup - I'm used to products like Backup Exec and tape media. What are my options for backing up this server? Can I only do file/folder backup, as it appears?
What would be best practice in this situation, as I need to back up the systems state as well? And then, how to restore it?
All I can think of would be to use Windows Server backup to create a backup of the server, then back that up - but it's so messy, I must be missing something.
Thank you in advance!!

Hi,
You may refer the following link for clear step-by-step procedure on Azure backup:
http://blogs.technet.com/b/sbs/archive/2014/05/01/configuring-microsoft-azure-online-backup-on-windows-server-2012-r2-essentials.aspx
As of now, you can only backup File & folders(Even entire drive) but you cannot perform System State backups with Azure Backup.
For System State backup, as you mentioned about using WSB and then backing it up to Azure Backup vault may be the only work-around as of now. However, you may vote and provide feedback for this feature in
here.
You may also refer below links for more info:
https://msdn.microsoft.com/en-us/library/azure/hh831419.aspx
https://msdn.microsoft.com/en-us/library/azure/dn722422.aspx?f=255&MSPPError=-2147217396
Regards,
Manu

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    Figure 1
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    Please remember to mark the replies as answers if they help and unmark them if they provide no help. If you have feedback for TechNet Support, contact [email protected]

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    2014-10-15 12:23:22  Found group in regsitry, attempting to use it...
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    2014-10-15 12:23:22  Finished group creation
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    2014-10-15 12:23:23  Granting registry permissions...
    2014-10-15 12:23:23  Granting registry permissions...
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    2014-10-15 12:23:25  Share successfully created
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    2014-10-15 12:23:26  Share successfully created
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    2014-10-15 12:23:28  Database exists
    2014-10-15 12:23:28  Switching database to single user mode...
    2014-10-15 12:23:32  Loading install type query...
    2014-10-15 12:23:32  DECLARE @currentDBVersion       int
    DECLARE @scriptMajorVersion     int = (9600)
    DECLARE @scriptMinorVersion     int = (16384)
    DECLARE @databaseMajorVersion   int 
    DECLARE @databaseMinorVersion   int 
    DECLARE @databaseBuildNumber    nvarchar(10)
    IF NOT EXISTS(SELECT * FROM sys.databases WHERE name='SUSDB')
    BEGIN
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    END
    ELSE
    BEGIN
        SET @currentDBVersion = (SELECT SchemaVersion FROM SUSDB.dbo.tbSchemaVersion WHERE ComponentName = 'CoreDB')
        SET @databaseBuildNumber = (SELECT BuildNumber FROM SUSDB.dbo.tbSchemaVersion WHERE ComponentName = 'CoreDB')
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        IF (@delimiterPosition = 0)
        BEGIN
            RAISERROR('Invalid schema version number', 16, 1) with nowait
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        END 
        SET @databaseMajorVersion = SUBSTRING(@databaseBuildNumber, 1, @delimiterPosition - 1)
        SET @databaseMinorVersion = SUBSTRING(@databaseBuildNumber, (@delimiterPosition + 1), (10 - @delimiterPosition))
        IF @currentDBVersion < 926
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        END
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                SELECT 2
            END
            ELSE IF (@scriptMajorVersion = @databaseMajorVersion AND
                     @scriptMinorVersion = @databaseMinorVersion)
            BEGIN
                SELECT 0
            END
            ELSE
            BEGIN
                SELECT 4
            END
        END
    END
    2014-10-15 12:23:32  Install type is: Reinstall
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    2014-10-15 12:23:32  Fetching account info for S-1-5-20
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    2014-10-15 12:23:32  Found account
    2014-10-15 12:23:32  Got binary SID
    2014-10-15 12:23:35  Fetching WsusAdministratorsSid from registry store
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    2014-10-15 12:23:35  Fetching account info for S-1-5-21-308464661-3380577483-199018475-1000
    2014-10-15 12:23:35  Found principal
    2014-10-15 12:23:35  Found account
    2014-10-15 12:23:35  Got binary SID
    2014-10-15 12:23:35  Setting content location...
    2014-10-15 12:23:35  Fetching ContentDir from registry store
    2014-10-15 12:23:35  Value is C:\WSUS
    2014-10-15 12:23:40  Swtching DB to multi-user mode......
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