Some embodiments may include a process for determining a type of snapshot to be stored using a data storage system. An example the process comprises identifying a snapshot chain for a first virtual machine, determining whether the snapshot chain includes a dependent base file, determining a maximum incremental chain length for the snapshot chain based on whether the snapshot chain includes a dependent base file, or based on an age of the backed up versions within the snapshot chain, determining whether a new snapshot chain should be created based on the maximum incremental chain length, and determining a type of snapshot to be stored for the first virtual machine based on the maximum incremental chain length.