Obviously it is a computer but unless you have a server farm I would not recommend it for home use. Xserves are designed to be used as email servers; web site hosting; etc etc etc.
You are also paying for components that need to be 99.9999% non-failure rate (a desktop has a 99.99% non-failure rate) since they need to host web-sites etc. Also they are not configured to have keyboard and monitor set up like a desktop.
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