Virtualization plays a key role in the area of Mobile Cloud Computing (MCC). In MCC, the protection of distributed VMs and mobile users’ sensitive data, in terms of security and privacy, is highly required. This paper presents a novel cloud proxy known as Three Policies Secure Cloud Proxy (Proxy-3S) that combines three security policies: VM users’ access control, VMs’ secure allocation and VMs’ secure communication. The proposed approach aims to keep the distributed VMs safe in different servers on the cloud. It enhances the access authorization to permit intensive distributed application tasks on the cloud or mobile devices while processing and communicating private information between VMs. Furthermore, an algorithm that enables secure communication among distributed VMs and protection of sensitive data in VMs on the cloud is proposed. Several experiments were conducted using a real-world healthcare distributed application. The experiments achieved promising results for high-level data protection and good efficiency rating compared to existing works.