A method and system for generating and managing snapshots of Virtual Machine (i.e., virtual snapshots) and creating a centralized integrated backup for the Virtual Machine (VM). Proposed method and system allow users to roll back to any previous version of the VM and instantiate this version using the logic encapsulated in a virtual snapshot of the VM. The virtual snapshots taken at various times can be combined into a chronological tree viewable via a virtual snapshot image viewer. The snapshot trees for different VMs are combined into centralized integrated system backup (CIB) that can be managed by a central console including a GUI of the virtual snapshot image viewer.