I have to disagree with just about all of this. The companies I've worked for didn't buy bottom of the barrel, cheap systems to host their web sites. They paid for quality equipment such as HP, Dell, and Sun (Oracle) systems to do so. The Xserve was comparably priced with these systems and Apple was not at a disadvantage, price wise, with these systems.
Except that, unfortunately, Apple only had a single entry level 1U server model for sale. IO-constrained, and no scale-up options.
It was like a burger restaurant that served a single patty on a bun without any extras. Want ketchup? No. Want onions or a second patty? No. Mustard? No. Coleslaw on the side? No.
Why would you go there?
Most of my systems are ProLiant DL380 systems - 2U with 80 PCIe 3.0 lanes and six PCIe slots.
Quad Gb Ethernet on the mobo and dual 10 Gb Ethernet on mezzanine cards.
26 disk drives (52 TB) internal RAID drives with 4 GiB writeback cache.
Dual 1400 watt power supplies and support for dual Titan X or other dual-width cards.
Apple needed to either make a 2U "Xserve Pro", or kill the 1U Xserve. We know what they did.
(And I threw up in my mouth a little when I typed "Xserve Pro"...)
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I have to disagree with just about all of this. The companies I've worked for didn't buy bottom of the barrel, cheap systems to host their web sites. They paid for quality equipment such as HP, Dell, and Sun (Oracle) systems to do so. The Xserve was comparably priced with these systems and Apple was not at a disadvantage, price wise, with these systems.
I agree completely with your disagreement.
Google, Microsoft Cloud, AWS and the others are special cases. They scale to tens to hundreds of thousands of servers per site, and have high availability infrastructure that deals with the situation that at any point in time 10% of the systems might be in a failed state. They're fine with a rack with 42 systems failing - the other 10,000 systems in the container will carry on. They buy custom or bottom of the barrel systems.
Companies that need a handful of servers go with mainstream systems with the reliability built into the hardware. (ECC, Mirrored RAM, RAID, ...)