You might’ve wondered about how to setup Failover Cluster inside Hyper-V Virtual Machines. As you know, the major element of a cluster is the shared storage piece. Inside Hyper-V VMs, iSCSI is the only supported method of providing shared disks over virtual NICs. Here’re detailed steps on how to create highly available resources inside Hyper-V Windows Server 2008 R2 VM; 1. VM Preparation: Provision the following VMs on your Hyper-V server; • One Windows Server 2008 (R2) DC Virtual Machine • At least two Windows Server 2008 (R2) Virtual Machines • Use an iSCSI target software to provide shared storage to each node.
Full Article: Hyper-V Guest Clustering Step-by-Step Guide