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We recently created a DR site, using VMware SRM. The domain controllers at the main site are physical and we also need a DC at the recovery site. The link between the sites is fast (20MB/s). I installed a Windows 2008 domain controller DRDC1 at the recovery site and joined to the domain without problems.

Would it be a good idea configure a new AD site for the DR location or will itconfuse the fail-over?

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It's unclear what you mean by "will it confuse the fail-over?"

It's a good rule-of-thumb to always configure Active Directory with the true physical topology of your network. You should create a Site and Subnet object(s) for the DR site, and appropriately connect it to the rest of your AD with a Site Link. Other Domain Controllers and clients can / will make poor decisions about replication or logon traffic if the physical representation of your network in AD isn't correct.

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Clarification: if the main site is down, the exact copies of the servers will come online at the DR site. They will need AD to authenticate etc, but now they find themselves at a different AD site. Since I've never tried such a scenario before, that's why the confusion. –  GK Feb 21 '10 at 13:27
    
Domain member computers use their IP address to query Active Directory to determine which site they're located in. Assuming the member computer machines are assigned IP addresses in the DR site subnet they'll "know" they're running in the DR site for Active Directory client purposes. –  Evan Anderson Feb 21 '10 at 21:46
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