We are hosting few virtual machines at amazon. Security groups and other configurations are set up to allow access only from desired addresses and to desired parties.
The machines do talk with each other. My concern is about communication security. I tried searching around the web, but may be I am missing right keywords as I could not find relevant information.
Do we need to encrypt traffic between virtual machines if contains sensitive data? Can someone with wireshark or similar tools, inspect my traffic. How does amazon prevent someone hosting a virtual machine and use wireshark to observe traffic?