Apple killed the Xserve. Jason Mick in DailyTech:
Apple will cease sales of Xserve in January and has posted an online Xserve Transition Guide [PDF] for its customers.
Apple will honor and support all Xserve system warranties and extended support programs. Apple intends to offer the current shipping 160GB, 1TB, and 2TB Apple Drive Modules for Xserve3 through the end of 2011 or while supplies last. Apple will continue to support Xserve customers with service parts for warranty and out-of-warranty service.
Apple is replacing the Xserve with a new product—a Mac Pro Server desktop which is definitely not 1U mountable. Available now, the default configuration weighs in at $2,999
Apple’s server products are a Mac Pro and a Mac mini. High end. Low end. Both with Mac OS X Server. PixoBebo is hosted on an Apple Xserve. For now.