Live migration of VM's is a common phenomenon in the cloud. It is part of load balancing of data. If one server crashes, virtual machine migration helps us, as the data would be available in the other server. Thus it improves throughput and efficiency. The movement of VM's from one environment to another is vulnerable to attacks. In most cases attack during live migration is encountered. The channel is prone to attacks by the malicious intruder. Hence the channel needs to be protected using IPSec tunneling. In this paper the security aspect is enhanced with IP Sec protocol and onion routing algorithm.