I don't see this as the end of xserve just the beginning of a new product, I think Apple is planing on releasing a new version of the Mac Pro Case one that would work as both a desktop and in a server rack maybe a 3u size. If apple dropped the xserve what would they use in there own backend?
The Mac Pro case is huge and does not need to be that size anymore, it was created back in the day when the G5 cpu could cool your breakfast and required a small nuclear reactor to power it, look at how small the mac mini is Apple can do it.
If apple was smart they would drop the more expensive zeon CPU's and go to cheaper i7 Quad core and faster CPU.
Think of it? it would be like cutting your feet off.![]()
Too late. If they had a new product, they needed to announce it already. MacPros will not be going in datacenters.