The demise of Xserve doesn't affect Apple's small business customers
Like the consumer market, small business is Apple's bread and butter. I operate a one-person, home-based photography shop with a Mac Pro, MacBook Pro, Mac mini 2010 connected to an HDTV, an older PowerMac running an old, $10,000+(US) scanner, an eSATA RAID and a Time machine for backup and various Apple routers and access points for 802.11n and Ethernet networking. Of course, I have the requisite iPhone and iPad too. My little Mac ecosystem is a lot to maintain while trying to concentrate on my art, but it works perfectly for my small business — and is extremely reliable.
While I need a server, I do not need (or really have the physical space) for a rack mount server set up in a separately cooled room.
Being the CEO, lone employee and janitor, I also don't have the desire or the time to learn and maintain another operating system like Windows or Linux. Besides, I despise the confusing and garish Windows interface, and after XP/Vista, I would never, ever trust Windows security. When the groundbreaking iPhone arrived on the scene, Microsoft missed the boat with small businesses. Back in 2007 (and to this day), Redmond has not delivered reliable contacts or mail sync support (outside of Exchange, which small businesses don't use). Three years after the arrival of the iPhone, even the newest (2011) version of Microsoft Office for the Mac (with Outlook) still doesn't reliably support direct syncing to the iPhone/iPod Touch/iPad, though the company has "promised" an update for this after Office 2011 ships.
These days, Microsoft just moves too slowly.
So, since Apple now sells a server version of the Mac Pro, I'll gladly utilize this option without a second thought. In my environment, simplicity — and my time — are far more valuable than saving a few dollars by purchasing cheap hardware. OS X server software is relatively easy to configure and maintain, is affordably-priced, and worry-free — I know everything will work, including backups, the network and file sharing, AppleSync and MobileMe.
In effect, Apple has put together all the components so that a small business can put together a turnkey office and production system. To Apple's core, small business customers, the elimination of Xserve is a non-issue. I do lament the apparent reality that Apple has not been able to successfully break into the insular world of IT offices, but this doesn't affect how small businesses can benefit from Macs.