XMPP defines S <--> S as well, but Google hasn't implemented that on
their server. What Miguel was talking about is clustering {S,S,S} <--->
... which (last time I worked on it) was pretty complicated thanks to
the s2s dialback protocol (server A initiates a connection to server B
using s2s, and server B does a DNS lookup of the domain server A and
dials back the authoritative DNS response to authenticate server A).
The s2s specification is what sets XMPP apart from MSN/Yahoo/AIM as it
means any network can provide their own domain specific server and
users on that networks can talk with any users on any other networks
server without having multiple accounts (just like email!). We just
have to wait for Google to turn it on.