How do I backup a windows azure virtual machine? I would like to schedule daily backups of system state that could be restored if needed. Data can be backed via Azure Backup, but not system it seems.
If you're talking about backing up the vhd of the virtual machine, you can:
Regarding the snapshots: You can create a brand new blob from a snapshot, which you may find convenient at times.
Regarding the blob-copies: The one challenge you might run into, when making a blob copy: If the source changes during the copy, the copy will fail. So for an OS vhd, this operation should only be done if the Virtual Machine is in a stopped state. You may find snapshots to be the better mechanism in this case.
There's really no Azure-specific mechanism for things like system restore points, as that's within the OS itself.
There is a service in preview, called Azure Recovery services. With it, you can take backup of your Azure VMs as well as your local VMs, to the cloud. It looks pretty similar to the built-in Windows Backup