Is it possible to use VPS hosting services available to set up a Linux Failover cluster on the internet ? (I believe Amazon cloud services allow this.)
VPS providers allow you to use multiple ip addresses on a single vps, but is it possible to get a virtual ip (which can be assigned to multiple machines) on the internet ?
What you are talking about is called BGP Anycast. It allows several Servers to use the same IP in multiple geographic locations. It is commonly used in DNS hosting for short request times across large geographical areas and so that NS1.example.com and NS2.exmaple always resolve to 192.168.1.1 and 192.168.1.2 but there are several servers that can get those requests depending on which has the best network route. This is very expensive as it requires you to run the BGP protocol and have your own AS number. What Amazon does is it ties your IP to what ever physical host your on and if that switches it can move to the next physical host with your instance.