It also has no real support, even at the enterprise level[1]. At MacWorld 2009, the entire Mac IT speakers track agreed that their best move had been switching all of their servers to Linux, hands-down, simply because Apple isn't interested in being a serious player in the server space. If you're a small design shop, yeah, an XServe is probably going to be fine but if your needs are any more serious this is a lot of risk to take for generally more expensive servers.
[1] Simple example: 10.5.2 broke NFS permissions so non-owners could not write to files. The phone support could do nothing about this and we had two choices: wait months for the next fix, patch darwin ourselves and run with a custom kernel (i.e. completely unsupported), or use a different server. The situation's not much better on the hardware side.
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It also has no real support, even at the enterprise level[1]. At MacWorld 2009, the entire Mac IT speakers track agreed that their best move had been switching all of their servers to Linux, hands-down, simply because Apple isn't interested in being a serious player in the server space. If you're a small design shop, yeah, an XServe is probably going to be fine but if your needs are any more serious this is a lot of risk to take for generally more expensive servers.
[1] Simple example: 10.5.2 broke NFS permissions so non-owners could not write to files. The phone support could do nothing about this and we had two choices: wait months for the next fix, patch darwin ourselves and run with a custom kernel (i.e. completely unsupported), or use a different server. The situation's not much better on the hardware side.