Where does this leave Mac OS X Server now? Is it dead? Will they continue to develop it and for what purpose?
The only product that is currently using it is the Mac Mini Server as far as I know.
The only product that is currently using it is the Mac Mini Server as far as I know.
There's now a "Mac Pro Server" option available, which includes OS X Server, but is priced a bit lower than if you take the base Mac Pro and configure it with the same hardware but without OS X Server.
(Take the base Mac Pro, raise the RAM from 3GB to 8, add a second 1TB hard drive, and you've got the same hardware config as the Mac Pro Server, for about $30 more, and without OS X Server, which would add another $499 to the price.)
After the X-Raid line's name was already passed onto a third party (Promise) this isn't really surprising.