I'm very new to the concept of VMs. I have 2 VMs with memcached installed in both having same port number. I want to link these two VMs so that if one fails, I still have the other one functioning with running memcached service. Can anyone please explain how I can do that asap.

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You are asking for a load balancer. As I understand you want an exact copy of your application in both servers. Then you should use a third one to serve the traffic from the other two. You can use nginx or squid or something similar to do the balancing...

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