<p>What's the difference between failover and disaster recovery?</p>

Failover: When one machine fails, another machine (usually in the same location) takes over and resumes service
Disaster recovery: When Godzilla destroys your data center, you do have alternative locations to keep providing your service and protocols/means for the other location to know how to keep delivering the service
Depending on the particular needs of each service, disaster recovery might just be a backup tape in a safe in a different location. In other words, it's just having a defined protocol to recover from disaster. Likewise, failover might just be having a spare backup machine which makes you go to the data center for it to take over the place of the failed one, that is, having a defined protocol about what to do in case of machine failure.
Summing up, failover answers the question 'what do I do in case a single machine fails?', disaster recovery answers 'what do I do in case a disaster happens (fire, floods, war, ISP goes bankrupt, whatever)?'
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