One embodiment is related to a method for excluding files from a backup image file during a backup operation, comprising: determining files to be excluded from the backup image; taking a first snapshot of a source volume; exposing an iSCSI (Internet Small Computer System Interface) disk with the first snapshot being a target; deleting files to be excluded from the exposed iSCSI disk; taking a second snapshot of the exposed iSCSI disk; and streaming the second snapshot of the exposed iSCSI disk to create a save set in a virtual disk file on a backup medium.