A method of consolidating snapshots includes receiving a request to consolidate a first snapshot with a second snapshot into a third snapshot, the first and second snapshots stored in separate backup files, each backup file organized as a directory where data parts of the first and second snapshots can be hard linked to locations outside of the backup file, comparing the data parts of the first and second snapshots to determine if any second snapshot data part fully overlaps with any first snapshot data part, responsive to determining that a second snapshot data part fully overlaps with a first snapshot data part, hard linking the determined second snapshot data part into the third snapshot, and storing the third snapshot in the backup file.