For failure management for multiple operating systems in a virtual environment, an external virtual machine or agent is provided that has been granted rights to full physical memory space to perform a crashdump for the machine. To avoid exposing secret information during a crashdump, private information for a virtual machine or partition is encrypted prior to generating a dump. The storing of crashdump information for virtual machines may avoid storing crashdump information for virtual machines that are stateless. Instead of having an (unstable) operating system running within a virtual machine perform a crashdump, the provision of an external agent, e.g., an external virtual machine, to perform the crashdump avoids many limitations associated with a normal dump when performed by a crashed operating system.