Shortly after announcing the end of the Xserve, Apple has added Mac Pro server configuration in its place. The new machine features a single 2.8GHz quad-core Intel Xeon 'Nehalem' processor, 8GB (4 x 2GB) of DDR3 ECC SDRAM, a pair of 1TB (7200RPM) hard drives, one 18x SuperDrive and ATI's Radeon HD 5770 with 1GB of GDDR5 video memory. The whole kit-and-kaboodle is served up with an unlimited-client license of Mac OS X Server. Pricing starts at US$2,999 and ships in a few weeks.
Despite EOL'ing the Xserve, Apple still has two server machines available; the new Mac Pro and the mini server. Check your wallet and make your choice. Just remember, changing hard drives in the Mac Pro is a heck of a lot easier, if you've got the room to stash it.