In this paper, a research work is carried out to improve workload management by minimize energy consumption of node, localizing traffic in a network and reduce communication delay between virtual machines in cloud environment. Cloud computing consists numerous virtual machine to store huge volume of data. The usage of virtual machines is to provide separate guest operating system which is popular now-a-days. The workload management across different virtual machines in cloud is really a difficult process. Decentralized approaches were proposed in the literature for energy efficient management of virtual machines. But still it has some issues like failed to consider the communication between virtual machines and it leads to traffic in a network. Thus it reduces the performance of work load management. . In order to reduce the energy consumption and to improve workload management in cloud computing, a combined technology comprises two approaches namely communication aware scheduling and power metering technique is proposed in this work. This reduces simulation time of computation nodes and improves the performance of cloud computing. The proposed power metering technique and communication aware scheduling reduces energy consumption, localizing traffic and reduced communication delay between virtual machines. The experimental results prove that the proposed technique works more efficiently than the existing technique in terms of energy consumption and simulation time.