Hi @Chirag Sachdeva ,
> If post windows 2008, we can use local DTC then why there is a need for clustered DTC?
With Windows 2008 Failover cluster and later you do not need to cluster MSDTC to utilize the functionality of the MSDTC service. This is because MSDTC was re-designed in Windows 2008 and unlike Windows 2003 if Windows Failover Cluster was installed you had to cluster MSDTC. This is no longer the case when using Windows 2008, since by default MSDTC service is running locally, even with Failover Clustering installed.
Currently there is some documentation that states you need to have a MSDTC Resource in your cluster.
I want to start out by emphasizing that the statement "You must install MSDTC is not 100 percent accurate." The statement does not take into account the OS and the changes with MSDTC in Windows 2008 and later.
For others two question, I suggest you reading this MS blog MSDTC Recommendations on SQL Failover Cluster, you can get the answers from this blog. This blog list common questions with MSDTC (Microsoft Distributed Transaction Coordinator) when used with SQL Server Failover Clustered instances to include current recommendations and best practices.
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