VMware Cloud uses vSAN Data-at-Rest encryption to store data in a public cloud provider’s storage.
It is possible to use in-guest encryption technologies like Microsoft BitLocker and Linux dm-crypt to protect workloads. This has performance impacts, given the double encryption (BitLocker plus vSAN Encryption), and defeats space efficiency processes like deduplication and compression (your virtual machine will consume its entire allocated disk space). In general, VMware does not suggest using in-guest encryption, but for some very sensitive workloads like Microsoft Active Directory it may be a suitable additional layer of defense. Use it sparingly due to the performance impacts and management overhead.
Third-party integrations, such as Amazon FSx for NetApp ONTAP, may have different encryption and performance considerations depending on the features and capabilities present in those solutions.