For some reason it seems to me that at least one failover should be in the same building. But really I have no idea. Could there be an issue with routing delays for users during a failure? I'm just imagining reasons at this point.
Let me know, should at least one failover node be at the same geographic location as the other?
I am trying to prevent what appears to be a poor decision so any feedback or life experience you can share would be grand.
Will mostly be running Windows Server 2008 with SQL Server 2008 as our guest OS.
Edit: I'm talking about two physical machines, either right next to each other or on opposite ends of the country. One of them will be always in use virtualizing many servers, the other will be a replication of the first and only be used directly in the event that the first one goes offline.