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SQL clustering with Virtual machines

I am setting up a SharePoint 2010 environment with two node SQL clustered database environment. I want to use virtual machines instead of physical servers for SQL server 2008 standard edition. I heard that clustering is not possible with Virtual machines. Is that true??? Does VMWare support VMs clutering or do I have go with physical boxes???

Can somebody please educate me on how it works with VMWare and which one's better??? VMs or physical boxes clustering??

Thanks in advance.
Avatar of Andrew Hancock (VMware vExpert PRO / EE Fellow/British Beekeeper)
Andrew Hancock (VMware vExpert PRO / EE Fellow/British Beekeeper)
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Not true, checkout these articles, and the Bible of Clustering for ESXi

Setup for Failover Clustering and Microsoft Cluster Service
http://www.vmware.com/pdf/vsphere4/r41/vsp_41_mscs.pdf

http://kb.vmware.com/selfservice/microsites/search.do?language=en_US&cmd=displayKC&externalId=1004617

These are the Clustering Guides

http://www.vmware.com/pdf/vsphere4/r41/vsp_41_mscs.pdf

http://kb.vmware.com/selfservice/microsites/search.do?language=en_US&cmd=displayKC&externalId=1004617

Creating a Cluster in Windows Server 2008

http://blogs.msdn.com/b/clustering/archive/2008/01/18/7151154.aspx

Installing a SQL Server 2008 R2 Failover Cluster

http://msdn.microsoft.com/en-us/library/ms179410.aspx

Getting Started with SQL Server 2008 R2 Failover Clustering

http://msdn.microsoft.com/en-us/library/ms189134.aspx

Installing SQL Server 2008 on a Windows Server 2008 Cluster Part 1

http://www.mssqltips.com/tip.asp?tip=1687

SQL Server 2008 Failover Cluster Document from Microsoft

http://tinyurl.com/SQL2K8Cluster
We cluster Virtual to Virtual, Physical to Physical and Virtual to Physical!
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Thanks a lot for the quick response. I will go through the links and I am sure they help me a lot. I do have some more questions though. I have both SQL VMs on the same ESX server, so what if the esx server goes down?? Is it better if they are on different esx servers??
Physical or Virtual is almost irelivent, as quite often the machine is unaware of the fact that it is virtual. Agree with hanccocka, we have the same. Modern virtualisation is very stable and allows for alot more options than physical and I would nearly always recommend it over using physical.
Thanks. so going back to my previous question do you have both VMs on same esx server or different??
You can have both VMs on the same host, or different hosts, but for resilience you would be better with a node per  different ESX host.
Sorry, I am little confused. If I have them on same esx server and if the esx server goes down both VMs will be down too..so is my SQL environment. How the failover works in this situation???
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Avatar of Andrew Hancock (VMware vExpert PRO / EE Fellow/British Beekeeper)
Andrew Hancock (VMware vExpert PRO / EE Fellow/British Beekeeper)
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Thank you.
I just wanted to clarify one more thing. which one’s better??  

VMware’s automatic failover (High Availability services) OR MS clustering services??

Thanks for your reply in advance.