Only the databases (not the server) that you log ship are in standby.

I have a situation where my production databases are standby servers for other production server and then the reverse. The chances of catastrophic failure are so slim I hate to have duplicate boxes sitting there doing nothing. So like Clustering I guess you can say I have a failover solution not 500 feet away but Oceans away. But as Brian mention you're only as current as your last successful transaction log backup that made it to the stand by server.

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A second catch is you have a read-only solution in the second server, it has to be that way in order to accept the transaction log backups (and you certainly don't want anything written to it, because then there would be no way of getting it back to the first server).

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John Zacharkan