In elastic cloud computing environment, multiple virtual machines may reside in the same physical machine for services consolidation. For the same residential guest domains or multi-tiered hosting services, the inter-domain communications are complex and frequent. However, traditional inter-domain communications are conducted through the virtual network interfaces of both sending and receiving virtual machines. Such TCP/IP networking communications involve lengthy communication path and frequent kernel interactions and thus downgrade the I/O performance of virtual machines. In this paper, we present an optimized inter-domain communication approach based on shared memory to improve the communication performance of multiple virtual machines residing in the same physical machine. In our approach, the sending data is shared in memory, not transferred via TCP/IP stack. The communication data are directly mapped into user space of the virtual machine and therefore it reduces useless system calls and context switches. The memory is shared via a customized shared device kernel module with bidirectional event channel resided in both communicating virtual machines. We use state flags in circular buffer to reduce wait and notify operations and thus reduce the system calls. Experiments show that our proposed approach can provide 5 time higher throughput and 2.5 times less latency compared to TCP/IP communication path.