SQL server hardware

[BigV]

I have been tasked to produce a plan for a system to run our SQL databases. This will be a replacement system for the one that flinched this morning.

Some requirements:

First tier hardware, including asap service contracts

Redundant systems so that there is no single point of failure, including the server itself

Windows Server OS

(not directly a server for sql requirement, but some accommodation for backup must be included in the plan)

Less crucial details:

Other Windows networking roles will be assigned to this newest, bestest system

Rackmount preferred, plenty of space >20U

Technologies I'm willing to consider at this large junction:

SAN / NAS

Server virtualization

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What is working for youse guys? What is *not working* that you would warn me to keep away from? I have a nice situation here to be able to design what I want. I want to learn from your experiences, please.