Windows Server clustering provides high availability and scalability. It allows groups of independent servers to work together as a single system. There are two types of clusters - Network Load Balancing Clusters and Server Clusters. Network Load Balancing Clusters balance load without high availability, while Server Clusters use clustering software to provide redundancy and failover capability. DHCP failover allows two DHCP servers to share scope information including active leases, enabling either server to provide addresses if the other fails.