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Failover cluster what does it exactly do? What software can be used with it? In practical terms.

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I have started to read articles and watch videos about fail-over cluster and clustering in general. 
I already know that there are several models to configure it (6?). But I couldn't get what software could benefit from it?
Does Hyper-V benefit form a failover cluster? If one of the servers goes down will all virtual machines continue working?
Does it work with all software? RDMS like PostgreSQL? 
Am I correct that clustering only works for processes but doesn't involve data itself (so files should be on a network drive).
Are there any performance benefits from using windows server clustering? For instance, with Hyper-V - will it be balancing load? And how does it do in layman terms?


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