I was at first really concerned when apple announced the end of the xserve line. My company had invested in two xserves last year.
There are some great things on the xserve for small businesses. After spending 20 hours (yes 20) trying to restore a server that stopped functioning after swapping in a new backup drive (ironic isn't it) I am inclined to think that Apple killed the xserve simply because it was a shitty product. I expect they will do the same for the os x server by the time lion comes out.
Enterprise grade servers should not stop functions or break raid when drives are plugged in. Headless servers should not loose screen sharing functionality after reboots. Open directory should not stop authenticating all of its users after rebooting. LOM management software should not freeze almost every time it tries to reboot servers.
Everything about the OS X snow leopard server from the management software to the reliability of the systems is half baked. It really shows apples lack of commitment to the platform and to enterprise clients. Now I am not saying I am a perfect administrator far from it. My main issue is that these products are marketed to small companies as a simple easy to manage solution. They are far from it.
I can't even tell you how many hours I have wasted on these systems after something stopped working for no reason. Or how many edits I have had to make to obscure configuration files that an average small business user would never fucking touch.
Apple prides itself on user experience and having things just work. This has not been my experience at all. I never thought I would say this but it makes me yearn for linux and I fucking hate using the terminal.
Maybe with an app store architecture to support server users we will have something that actually works until then fuck you xserve and the lies you rode in on.