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iWay Service Manager (iSM) can be deployed to automatically fail over to another waiting machine usually referred to as a "hot backup" host. In this model, configuration and repository files are shared so that the backup iSM behavior is identical to the primary iWay Service Manager. Simple failover relies on iWay's native functionality to emit and respond to "heartbeat" messages which signify normal operation of the primary server. When a failure is detected, the backup host executes a process which manages the switch-over (sending an appropriate message to the router to reconfigure itself, posting an email to the SysOp, and so on) and then assumes the workload of the primary server. It should be noted that the primary and backup servers need not be located in the same data center, for example, they may be geographically dispersed.

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A third-party tool clustering or failover product such as Veritas Cluster Server can replace iWay's heartbeat, monitoring, and failover process flow logic. In this case, iWay is unaware of the failover management and is run in stand-alone mode. The topology, configuration, and other requirements will be dictated by the needs of the third-party tool.