• Joined both instances to AD domain
• In Computer Management--> File Management I could see the disks/volumes I intend to use for fileserver, I did format them in NTFS (On both instances).
• Installed FileServer role on both instances
• Installed failover clustering features on both instances
• In Failover Cluster Management while trying to validate the configuration the storage validation "List All Disks" lists all the disks/volumes "Eligible for Validation" as false. and the error displayed is "Disk bus type does not support clustering. Disk is on the system bus. Disk partition style is MBR. Disk partition type is BASIC. "

You probably want to watch https://www.youtube.com/watch?v=og4tQWm5J3I.

Essentially failover clustering is looking for a shared disk, which EBS is not. In EC2 and other cloud environments you are generally limited to using 3rd party replication solutions to build failover clu

Hi varadaraj ramachandraiah,

This error typically caused the storage issue, but I am not familiar with Amazon cloud, as David mentioned the failover cluster need the shared storage, please confirm with Amazon, ensure their SAN is compatible with Windows Server 2008 R2. Ensure the virtual storage drivers, firmware and software is compatible with Failover Clustering.

 The storage must support SCSI Primary Commands-3 (SPC-3). In particular, the storage must support Persistent Reservations as specified in the SPC-3 standard. The miniport driver used for the storage must work with the Microsoft Storport storage driver.

Storage should be isolated to a cluster in that a LUN provided to a cluster must not be accessible from another cluster through zoning and masking. If you can have a SAN dedicated for a cluster that would be even better.

More information:

Windows Server 2008 R2 Failover Clustering - Best Practice Guide

http://blogs.technet.com/b/aevalshah/archive/2012/05/15/windows-server-2008-r2-failover-clustering-best-practice-guide.aspx

Im glad to be of help to you!