FEW years ago, when virtualization was used for development and test organizations, security was not an issue. It was used for easy access to multiple operating systems that were installed on a single server. Since it was successful, virtualization spread to production-oriented data centers within major corporations. It helped create networks of virtual machines within physical servers. Today as we see that virtualization has moved to the cloud, there is a high risk for exploits. Virtual firewalls are built specifically to lessen the risks of virtual networks. It is basically a packet filtering Virtual firewall that is installed as a software in a switches virtual environment. It also provides control of inter-VM traffic. Hence it can protect and lessen the risks of viruses, worms and Trojans in a virtual environment.