A VDC must address the threats, inherent vulnerabilities, and characteristic risks to data centres, as well as those specific to complex virtualized environments. Fortunately, VDCs can be made secure by using several safeguards and best practices. These safeguards and best practices involve addressing each layer of the virtual environment as well as addressing interactions between the various layers. This report provides an overview of a VDC, presents the inherent vulnerabilities in a VDC, and provides recommendations on how to design a secure VDC.