There are three ways to set up and use DPM in Azure:

 Download the System Center binaries to a new Azure IaaS VM and install DPM.

 Use the DPM evaluation virtual hard disk (VHD) as the image for a new Azure IaaS VM.

 Upload the VHD to Azure from an existing DPM VM on-premises, and use the uploaded VHD as the image for a new Azure IaaS VM.

These three options have varying degrees of simplicity and utility, depending on how comfortable you are with using DPM. For example, existing users of DPM might find it easier to configure everything on-premises and just upload the preconfigured VHD to Azure for use. The evaluation VHD is ideal for users trying out DPM who want to get started quickly. This chapter covers the first option in greater detail, that is, a full installation of DPM after downloading the System Center binaries.

Source of Information : Microsoft System Center