A key challenge in network virtualization is to efficiently map a virtual network (VN) on a substrate network (SN), while accounting for possible substrate failures. This is known as the survivable VN embedding (SVNE) problem. The state-of-the-art literature has studied the SVNE problem from infrastructure providers' (InPs') perspective, i.e., provisioning backup resources in the SN. A rather unexplored solution spectrum is to augment the VN with sufficient spare backup capacity to survive substrate failures and embed the resulting VN accordingly. Such augmentation enables InPs to offload failure recovery decisions to the VN operator, thus providing more flexible VN management. In this paper, we study the problem of jointly optimizing spare capacity allocation in a VN and embedding the VN to guarantee full bandwidth in the presence of multiple substrate link failures. We formulate the optimal solution to this problem as a quadratic integer program that we transform into an integer linear program. We also propose a heuristic algorithm to solve larger instances of the problem. Based on analytical study and simulation, our key findings are: 1) provisioning shared backup resources in the VN can yield ~33% more resource efficient embedding compared to doing the same at the SN level and 2) our heuristic allocates ~21% extra resources compared to the optimal, while executing several orders of magnitude faster.