This makes sense: The product was never a big hit or a meaningful business for Apple, and if Apple is going to focus at all on the enterprise, there are much better places to invest in, such as the iPhone, iPad, and Mac businesses.
And if you REALLY want to use a Mac as a server, you still can: Apple’s Mac Pro and Mac mini can both be ordered with Mac OS X Server software pre-installed. (The tiny Mac mini, which doesn’t use much power, is actually quite useful as a server.)
Apple introduced the Xserve in 2002 as UNIX-types were starting to buy the Mac, because of its then-newish, geek-friendly OS X operating system. This was before Apple’s iPod hit it big, and before the Mac had its consumer renaissance later in the decade.
“Xserve is the result of listening to our customers,” Apple CEO Steve Jobs said in a canned quote in the press release announcing the device. Apple also attached a second sheet to the press release, full of praise for the Xserve from huge tech companies like HP, Oracle, and Adobe.