Network Load Balancing(NLB) distributes incoming I.P(Network) traffic across cluster of servers. NLB provides high availability by automatically detecting the failure on a server and repartioning incoming traffic among the remaining servers.
NLB is mostly used with web services. You cannot run both NLB and Microsoft Clustering Services(MSCS) on the server, however you can run them on the same solution.
You might use both on a database deriven web servers.
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