Apple introduced its next big thing today: the Xserve. It is a 1U rack-mounted server that runs OSX server. It is available in a single or dual 1 gHz G4 configuration. Standard features include CD-ROM, ati graphics, dual gigabit ethernet, usb, and firewire.

The most affordable version includes 256mb DDR and a 60GB hard drive for $2999. Full details are available at Apple's website . It also looks like it includes an iTunes-like management console. Definately worth a look!