What is it called when multiple physical servers share resources amongst each to act on behalf of a single opperating system or application for a common purpose? I think Microsoft calls it clustering, but I am not sure. Is this possible for any of the 'nix distributions availabe? What do I need to consider for implementation? I am trying to understand how cloud computing works. Thanks.

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Yes, clustering is probably what you mean. Yes, it's available for various *nix (and OpenVMS) implementations. As to what to consider to implement - your budget and in particular the cost of a consultancy to do the design and implementation for you.

Cloud Computing is a generic marketing term rather than a physical type of setup.

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Theres an open and free product called kerrighed that allows for clustering of various PCs. Theres also a guide for setting up a cluster with Ubuntu clustering here.

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