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How is protected instance calculated in Azure?

If my laptop's hard disk is 500 GB & data residing in it is 60 GB is it considered in the 2nd category?

(a) I want to take back-up of 10 GB out of 60 GB data I have. What category of protected instance does it fall in (1st or 2nd)

(b) If over a period of time, incremental data adds up & grows beyond 50 GB, will the instance size move to the 2nd category


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