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Originally Posted by
charlituna 
It's hard to say that they are abandoning the whole market but it is clear that they are abandoning a product that was only sellable to a very small group. Many, if not most, small to mid sized companies will do just find with a Pro or Mini based server or two.
Well, they've been half-assed (or even less-assed) about the enterprise market to begin with. I think the Xserve, (and Xserve RAID) was a great idea, with slick, yet practical design. But, as has been stated several times already, Apple did almost
no marketing for it. It's almost as if they were implicitly telling the world, "this is just a nifty experiment we're knocking around. Don't take it too seriously." And, with the exception of VATech, a few universities, and the Xserve-meisters who have commented here, the world said, "Okay, we won't."
I never once saw an ad—on TV or print—for Apple Xserve. But I've seen plenty of ads for Dell, HP and IBM blade/server solutions for enterprise. The point being, you can build awesome stuff, but you're not gonna sell it if no one knows anything about it.
The Mini or Mac Pro Server are fine for small businesses or home office situations, but can't be feasibly scaled to large enterprise situations. Sure, you could do large-scale hacks to make them work, but when you get to the enterprise level, hacking is really not a good idea. You need a solution that's robust, and reliable, not something that you tinker with and hope it works.
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they updated the site with a Mac Pro Server config the same day or the one after they made the xserve announcement
I was talking about a
new Mac Pro design, not simply a stopgap measure, utilizing the current Mac Pro.
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Wow, that is some serious FUD.
Oh, I take my FUD
very seriously!! 

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Or Apple has realized that they can't make THE product that everyone wants at the price they want and is conceding this one to the better companies.
Apple has never tried to make
"THE product that everyone wants at the price they want". And I can't imagine Apple or
any company internally or publicly saying "We're just not very good at this, so we'll let someone who's better do it instead." But, it seems like with their $50 billion in cash, they could take a couple billion, and work with large enterprise/IT professionals to design 2-3 Xserve form factors that could suit various needs. This would tell enterprise that Apple is serious about enterprise, and hence, enterprise would be more likely to take Apple seriously as well.