Protecting your CRM data and providing continuous availability of service is important for you and for us. You have multiple options for backing up and restoring your CRM Online instances. For CRM Online 2016 Update 1, we’re introducing on demand backups that you can perform on CRM Online 2016 Update 1 Production and Sandbox instances.
There are two types of backups: system backups and on demand backups.
System backups take place without you having to do anything.
About CRM Online system backups:
With on demand backups, you can make your own backup before making some significant customization change or applying a version update.
About CRM managed on demand backups:
Backup and restore instances
Manage your Microsoft Dynamics CRM Online subscription