The first operation performed will be the New backup and this is typically created using the applications user interface (as opposed to scripting or scheduling). Once created, the backup project will consist of two folders in which many different objects including the structure of the site or mailbox, various configuration files and of course the content, metadata and security of the objects are stored. You will also notice a single folder that represents the time (Year-Month-Day Hour-Minute-Second) at which the first Full backup began. This will correspond to the snapshot that will eventually appear in the Applications Backup Navigator.
After the new backup is complete, you can now consider creating updates. Updates (regardless of type) will be stored in the same folder location as the new backup, but will be contained within its own timestamped folder based on the time this update began.
NOTE: The backups are stored normalized and no additional security, encryption or wrappers are added to them. Please be sure to secure this backup storage location to only those who should have access to the backed up data.
Now its time to create our first backup project. Essentials for Office 365 supports individual backup projects for SharePoint Online, Exchange Online Mailboxes and OneDrive for Business Sites so we will provide an initial walkthrough for each.
SharePoint Online backup can contain up to one site collection per project, so if multiple site collections (or individual SharePoint sites) is required, you will need to create a separate project for each. You will be required to provide SharePoint Online credentials that have at least Full Owner to the site(s) being backed up, Site Collection Admin is recommended.