Apple discontinues Xserve as of January 31; will continue to fully support existing units

Apple StoreApple is transitioning away from Xserve. Xserve will be available for order through January 31, 2011. After that date, customers looking to upgrade, replace, or supplement existing Xserve systems with new Apple hardware have the following two server solutions to choose from.

Mac Pro with Snow Leopard Server
Mac Pro systems deliver performance and expandability equal to or surpassing Xserve, and offer an excellent server solution for customers looking for the highest levels of performance, storage, and expandability. Now preloaded with Mac OS X Server, the Mac Pro tower form factor can be deployed in an office environment on or under a desk, or in a data center environment on a shelf in a rack with two units per 12U.

Mac mini with Snow Leopard Server
Since its introduction in the fall of 2009, Mac mini with Snow Leopard Server has become Apple’s most popular server system. It brings great capability in a small, efficient form factor that is affordable and can be deployed anywhere. Perfect for small business and workgroups of up to 50 people, a single Mac mini can run the full suite of Mac OS X Server services. A single Mac mini can also be deployed as a single-task server for a larger number of users in a business or education environment.
Depending on the workload and number of users, a single Xserve could be replaced with one or multiple Mac mini server systems.

During the gradual transition from Xserve, Apple will continue to provide warranty service and complimentary technical support for the product. Apple continues to offer Mac OS X Server on the popular Mac mini with Snow Leopard Server solution and the new Mac Pro with Snow Leopard Server solution as alternatives to Xserve.

Apple will continue to take orders for current Xserve models through January 31, 2011. These systems will have Apple’s full standard one-year warranty. The AppleCare Premium Service and Support program for Xserve is available as an option at time of order to extend complimentary technical support and hardware service coverage to three years from the Xserve date of purchase.

Apple will honor and support all Xserve system warranties and extended support programs. Apple intends to offer the current shipping 160GB, 1TB, and 2TB Apple Drive Modules for Xserve through the end of 2011 or while supplies last. Apple will continue to support Xserve customers with service parts for warranty and out-of- warranty service.

Customers can rest assured that Intel-based Xserve systems will continue to provide useful service during and after this transition.

More info, including benchmarks of Mac Pro and Mac mini vs. Xserve, in Apple’s “Xserve Transition Guide” (.pdf) here.

[Thanks to MacDailyNews Readers “Fred Mertz” and “Edward W.” for the heads up.]

81 Comments

  1. @Horseman,

    Actually, my company (small company of around 40 employees and a complete Mac shop) uses the Xserve so I’m familiar with it but I’ve also worked in companies with thousands of employees in primarily mixed Windows/UNIX/AS400 environments. I’m certainly not knocking the X-Serve as it works just fine for our business, but I just don’t see how it fits in with where Apple is going with their business model. That’s what I’m getting at.

    It made sense when Apple introduced it in ’02 to serve small businesses but I don’t believe Apple ever thought of getting into the large enterprises that do hundreds of millions per year or more in revenues. But a lot has changed since then and Apple is now a bona fide consumer electronics company that competes more with the likes of Sony, Samsung, and LG, etc. than HP or Dell. What I really meant to say is that I’m surprised Apple even kept the Xserve going as long as it has.

    Apple has shown no interest on the backend side of running an enterprise. Apple also goes for the high-margin differentiated value-added products on the client side. How can Apple compete in the server space when it has become a vast sea of horizontal and modular commodity gear provided by dozens of vendors ranging from IBM to no-name kit providers in China using Wintel and Linux?

    As I said, I’m not knocking the product and OS X Server software. It all works great where I work and we don’t worry about support issues down the line either. I’m just saying that Apple’s focus has changed over the years since its introduction and have never really tried to market it properly even with all of their resources.

  2. I’ve been reading comments here and elsewhere that Apple discontinuing the Xserve is a harbinger of them abandoning the enterprise market and even the Mac itself altogether. Please… Let’s try to look at the bigger picture. From what I’ve seen, Apple is dead serious about getting into the enterprise and we’re talking about Fortune 500 companies that do many billions in revenues on an annual basis. It’s just that Apple is focusing on mobile usage of these companies’ employees with the iPhone and the iPad, not the backend – an area in which Apple does not have expertise compared to the likes of IBM, HP, Dell, Oracle/Sun, etc.

    Macs can be added as well for client usage but let’s be honest here: Macs are not the first choice for a bank’s credit card payment data processing and other mundane tasks of number crunching by people in Accounts Payable departments. We don’t expect to find Macs being used at a local auto mechanic’s shop or at the Department of Motor Vehicles or on the front desk of a hotel. In a way, I think most of us are glad that we don’t see Macs everywhere.

    The Mac is gaining serious market share in the PC market and growing much faster than the growth of PC sales of competitors like HP, Dell, Acer, Toshiba, etc. Also, both for Apple and the rest of the PC makers, laptops account for much larger chunk of all PC sales than the desktops. The Windows crowd will say that the Mac is still a “niche” product but it is a very profitable one for Apple. As I’m sure some of you are aware, the Mac has a share of 90% for all PC’s that are over $1000. Even though Apple’s global market share in PC shipments is less than 5%, it is estimated that Apple makes 35% of the profits. Now why would Apple abandon such a profitable business?

    Remember Tim Cook at the last earnings call pointing out that the Mac accounts for $22 billion in annual sales and that this business alone would be #65 on the Fortune 500? And it continues to grow fast at 25%+ rate. Apple has more than doubled the market share in the US PC market over the past decade and is now at a respectable 10.6%. If that’s still a “niche,” it’s a very profitable one and the envy of the industry. Even Microsoft takes notice and has a section on their site dedicated to prevent the Windows-to-Mac defections.

    And then there’s the halo effect of the sales of the iOS devices all around the world. Certainly, most of these iPhone and other iOS device buyers are not Mac owners – especially overseas. This means a great opportunity to sell more Macs to these iOS customers and getting them fully integrated into the Apple ecosystem. Now all these people (especially the ones in Asia where Mac usage is virtually non-existent) who would have never considered a Mac are at least open to getting one for their next PC purchase.

    Now how is this a bad thing for the Mac platform? There’s a good reason to make future Macs have iOS features as well as the look-and-feel. There’ll be many tens of millions of Windows users with iPhones, iPads and iPod touches who will now seriously consider getting an iOS-like Mac in the years ahead. Sure things are all going mobile in the future but, in the meantime, 300 million PC’s will be sold per year and Apple can get a much bigger chunk of that than they’re getting now.

    As for the Xserve, how does it fit in to this grand strategy that Apple has for the future? It’s not even a profitable niche. To even call it a “niche” is stretching it in the big scheme of things when the entire Mac market is still considered as such. And Apple is hellbent on making sure that the iOS platform will not become a niche. Let’s face it: that’s Apple’s top priority right now. Apple’s focus is making iOS the dominant mobile platform (although no one expects any platform to achieve Windows-like dominance in the PC market). The Xserve and the backend enterprise market just isn’t something that Apple could focus on nor should it be.

  3. Look at this chart of the enterprise server market. I knew it was bad but hadn’t checked in a while and didn’t know that it was *this* bad.

    Now why should Apple devote their resources to compete in this sinking ship of a market? And the margins must be horrible. Now who here still believe that Apple should have bought Sun?

    It’s no wonder that the likes of IBM, HP and Dell are focusing on storage, networking equipment, software, consulting and systems integration. Selling servers has become a dead-end business.

    Apple’s Mac business ($22 billion in fiscal ’10 and growing at over 25% rate) is now over half of the entire server market.

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