diff --git a/staging/src/k8s.io/legacy-cloud-providers/azure/clients/armclient/azure_armclient.go b/staging/src/k8s.io/legacy-cloud-providers/azure/clients/armclient/azure_armclient.go
index c595e9d068a..70d81d87bb8 100644
--- a/staging/src/k8s.io/legacy-cloud-providers/azure/clients/armclient/azure_armclient.go
+++ b/staging/src/k8s.io/legacy-cloud-providers/azure/clients/armclient/azure_armclient.go
@@ -64,10 +64,11 @@ func New(authorizer autorest.Authorizer, baseURI, userAgent, apiVersion, clientR
 
 	backoff := clientBackoff
 	if backoff == nil {
+		backoff = &retry.Backoff{}
+	}
+	if backoff.Steps == 0 {
 		// 1 steps means no retry.
-		backoff = &retry.Backoff{
-			Steps: 1,
-		}
+		backoff.Steps = 1
 	}
 
 	return &Client{
diff --git a/staging/src/k8s.io/legacy-cloud-providers/azure/clients/armclient/azure_armclient_test.go b/staging/src/k8s.io/legacy-cloud-providers/azure/clients/armclient/azure_armclient_test.go
index 19645847236..700b43eaaaf 100644
--- a/staging/src/k8s.io/legacy-cloud-providers/azure/clients/armclient/azure_armclient_test.go
+++ b/staging/src/k8s.io/legacy-cloud-providers/azure/clients/armclient/azure_armclient_test.go
@@ -36,6 +36,22 @@ const (
 	testResourceID = "/subscriptions/subscription/resourceGroups/rg/providers/Microsoft.Network/publicIPAddresses/testPIP"
 )
 
+func TestNew(t *testing.T) {
+	backoff := &retry.Backoff{Steps: 3}
+	armClient := New(nil, "", "test", "2019-01-01", "eastus", backoff)
+	assert.NotNil(t, armClient.backoff)
+	assert.Equal(t, 3, armClient.backoff.Steps, "Backoff steps should be same as the value passed in")
+
+	backoff = &retry.Backoff{Steps: 0}
+	armClient = New(nil, "", "test", "2019-01-01", "eastus", backoff)
+	assert.NotNil(t, armClient.backoff)
+	assert.Equal(t, 1, armClient.backoff.Steps, "Backoff steps should be default to 1 if it is 0")
+
+	armClient = New(nil, "", "test", "2019-01-01", "eastus", nil)
+	assert.NotNil(t, armClient.backoff)
+	assert.Equal(t, 1, armClient.backoff.Steps, "Backoff steps should be default to 1 if it is not set")
+}
+
 func TestSend(t *testing.T) {
 	count := 0
 	server := httptest.NewServer(http.HandlerFunc(func(w http.ResponseWriter, r *http.Request) {