Abstract: Example embodiments of the present invention relate to a method and a system for immediate recovery of virtual machines encrypted in the cloud. The method includes retrieving at least a portion of data from an off-premise replica site configured to store an encrypted first data part of an I/O as data at the off-premise replica site according to a second metadata part of the I/O. The first data part of the at least the portion of the data then may be decrypted at the on-premise recovery site according to a private key not available to the replica site and stored at the on-premise recovery site in a cache at the recovery site.