Virtual Network Encryption

Applies to: Windows Server 2022, Windows Server 2019, Windows Server

Virtual network encryption allows encryption of virtual network traffic between virtual machines that communicate with each other within subnets marked as ‘Encryption Enabled.' It also utilizes Datagram Transport Layer Security (DTLS) on the virtual subnet to encrypt packets. DTLS protects against eavesdropping, tampering, and forgery by anyone with access to the physical network.

Virtual network encryption requires:

  • Encryption certificates installed on each of the SDN-enabled Hyper-V hosts.
  • A credential object in the Network Controller referencing the thumbprint of that certificate.
  • Configuration on each of the Virtual Networks contain subnets that require encryption.

Once you enable encryption on a subnet, all network traffic within that subnet is encrypted automatically, in addition to any application-level encryption that may also take place. Traffic that crosses between subnets, even if marked as encrypted, is sent unencrypted automatically. Any traffic that crosses the virtual network boundary also gets sent unencrypted.

Tip

If you must restrict applications to only communicate on the encrypted subnet, you can use Access Control Lists (ACLs) only to allow communication within the current subnet. For more information, see Use Access Control Lists (ACLs) to Manage Datacenter Network Traffic Flow.

Next steps

Configure encryption for a virtual network