Its High Availability Cluster software solution, as it can detect hardware/software faults, and immediately restarting the application on another system without requiring administrative intervention, a process known as fail-over.

We can...

We aint using Windows Clustering its the disaster recovery solution (High Availability)

where common shared disk (e.g. SAN) are used for High Availability(same location) and the shared disk is then

synchronize with...

Thanks Perry Whittle

You mean to say we put all the system databases (like master, msdb, temdb etc)

on a shared disk and these databases are common to both the nodes.

Active node...