And if you really want to add a failover server, double what you're planning so you can get a server with similar hardware and identical software. That means you'll have to invest in extra software licenses too.
With the above, you can do log shipping, assuming you're using SQL Server Enterprise version. Log Shipping doesn't work on other versions. But it will allow you to "flip a switch" so to speak to bring it on as the primary server should your primary fail.
The other alternatives are Clustering (Enterprise needed for that too) and Replication (not sure if Enterprise is needed or if it works for Standard). Still, you're talking additional hardware and software investments. This is, as SQLBill mentioned, way above base system requirements.
The cheap method of data recovery is to get yourself a tape backup drive and do daily backups. Note that this is not necessarily the best method of recovery setup options. Simply the cheapest.
Catadmin - MCDBA, MCSA
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