In the article End-to-End Virtual Machine Backup I mentioned the new VMware Workstation 7.0 feature that creates an encrypted disk but in reality it is an encrypted virtual machine, which also implies encrypting the virtual disk. This one option to VMware Workstation is something that is needed within VMware vSphere as well as the other hypervisors. Encrypting virtual disk data can add to the overall security stance based on the encryption technology employed. So what do we need with virtual disk encryption?