What is an Exchange DAG (Data Availability Group)?

Referring to Microsoft, Exchange DAG is a high availability cluster for Exchange

server. Since Exchange 2010 users are able to cluster up to 16 mailbox servers
inside a single DAG. The Active Manager, the management tool for the DAG,
replicates the mailbox databases and takes care about the failover and switchover
mechanism.
How does it work?

The DAG replicates the mailbox databases between the mailbox servers. The more
server are included, the more copies can be shared throughout the DAG group. As
typical for a cluster, it also contains a heartbeat, cluster networks, and the cluster
database.

The DAG group always has one active server. The rest is set on passive. That
means, depending on the structure that is setup:

The mailbox databases are spread across multiple DAG members > that ensures
that no two servers have the same mix of databases.
The databases of the active server are replicated to the passive server > direct
copy of the active server
The DAG replicates the data on a remote server > also called site resilience, as it
guarantees a remote copy of the data

Does the active server need a software upgrade, the administrator can easily put
the server in maintenance mode. The next passive server in line then becomes
active. As the server does have all current databases, the switch causes no problem
at all. The new active server continuous to replicate the mailbox databases to the
rest of the passive servers. Is the administrator done with the maintenance, the old
active server will request all changed databases and is able to continue his job.

But no matter which scenario is the one of your choice, they all have the same
background operations running. These include the data and the transaction logs.
Here are two ways of replicating both:

All databases are replicated continuously. In addition the transaction log files are
updated on every passive server afterwards. This is called a file mode replication
and comes with some negative aspects. For example, if the active DAG server
crashes while all data is already transferred, but the log files are not yet updated,
the replicated data is worthless.
The block mode replication writes the data to the log buffer on the active server
and copies it to all passive servers in the DAG. These create their own transaction
logs based on the buffer data. In case the active server is not reachable all passive
servers have a current state of the data and the transaction logs.

Microsoft Exchange QuorumThere is one more feature running in the operation, the
quorum. You actually dont need to know how the quorum works, because Exchange
takes care of it, but I think its pretty interesting. Imagine the quorum as a group of
viewers that have access to the DAG members and resources. Quorum is important
to ensure consistency, to act as a tie-breaker to avoid partitioning, and to ensure
cluster responsiveness. But how does it ensure that the three tasks are fulfilled
properly?

Ensuring consistency > The quorum checks, if every member of the cluster is able
to access the current state of the data and settings. In case a member is not able to
load the cluster hive the luster service wont start. Thus, all DAG member have to
meet the requirements at all times, otherwise they are not allowed to join the
cluster.

Acting as a tie-breaker > In DAGs with an even number of members, the quorum
needs an extra vote. This extra ghost member is called a quorum witness
resource. It is used to prevent data or availability inconsistencies based on a lost
service, but still running cluster members. The first cluster member that is able to
place a note inside the Server Message Block on the witness server, will get an
extra vote to keep quorum. All other members that are able to reach the witness
server will get just one vote. Members who are not able to connect, loose quorum.

Ensuring responsiveness > To run a DAG minimum two members are needed, the
active server and a passive server that contains a copy of the data. In case there is
just one member left, the DAG is not able to operate.