I thought the review from Yager on the previous ones, and some ofthe more recent reviews for the recent update showed it was actually quite competitive. Add in the licensing, and it's a decent package for some.
At the retail level, the HP DL360 G6 is on par with the Xserve hardware-wise. Retail price, the HP is higher ($6,629 HP vs $5,649 Apple for a difference of $980) with a configuration of 1 x 2.26, 3GB RAM, 3TB of raw disk, and a 3 year warranty. The HP would definitely have an advantage on disk I/O simply for the fact that it has twice as many spindles.
I don't know many companies paying retail, except when buying Apple. Of course, the Xserve includes an OS, but again I don't know any companies buying server licenses at retail costs either.
In reality, I'm concerned with what my company can buy. I worked for an organization of 138,000 employees, and Apple refused to budge on any pricing. I was shocked considering the potential for more sales of hardware was obvious. I could get Cisco, HP, 3Com, practically any company to drastically reduce prices just to get a foot in the door.
Given that I can get a non-OS X server to do what I needed, we went with HP, who gave us a nice discount. In the end, I could buy 2 HP DL360s for every one Xserve, software included.
On top of that, the HP includes:
1. iLO, so I can remotely do anything including powering the box on or off and booting from an ISO on my machine. This is a huge advantage.
2. The ability to have up to 8 hard drives for more throughput and scalability. This is where the Xserve really lacks. I mean, a server with just 3 drive bays is just ridiculous. I can't even get a 2TB RAID 5 array with a hot spare.