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In a surprise announcement, Apple is discontinuing their Xserve rack-mountable servers. Apple has released a transition guide which states those who want to use a Mac as a server can do so by using Mac OS Snow Leopard Server on Mac Pro or Mac mini.

Apple 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.

It appears Apple is of the belief that a Mac mini, or Mac Pro is just as capable, and easy enough to store that the Xserve form factor is simply no longer necessary.