The disclosed embodiments provide a system that archives data for a distributed filesystem. Two or more cloud controllers collectively manage distributed filesystem data that is stored in one or more cloud storage systems; the cloud controllers cache and ensure data consistency for the stored data. During operation, a cloud controller determines that a cloud file in a previously stored data snapshot is no longer being actively referenced in the distributed filesystem. The cloud controller transfers this cloud file from the (first) cloud storage system to an archival cloud storage system, thereby reducing storage costs while preserving the data in the cloud file in case it is ever needed again.