This is why Apple is not enterprise friendly. While Lion Server is a nice price, the rollout for Lion will be a disaster for many IT people.
As a former IT Manager, I would be livid with this announcement. Imagine having a few hundred people with Macs and you have to install Lion on each machine via Internet!?! Ack! This means:
-No image deployment (not a HUGE deal but an inconvenience)
-No all-at-once department upgrade since it would kill network/Internet bandwidth.
-Sucks for users who aren't connected to the Internet. Believe me, many organizations have someone named Hazel sitting in some obscure corner of the publications department doing a task and she isn't connected to the Internet.
If it were me, I would push back the migration to Lion as far as possible or trickle it out over the next few years.
There is a reason volume licensing, volume imaging, and volume deployment exist. Apple is shooting themselves in the foot by not playing nicely with corporate customers.
Sadly, IT Managers that catch wind of this upgrade-only-via-Internet-per-machine crap will make sure the next person who suggestions an Apple Macintosh over a PC for a project is shot down faster than Flash on iOS.
I guess what makes me the most upset is that Apple could have really pushed for more integration into the Enterprise market as they have good software and quality products, but this is a major mistake.
-P