It depends on what you attach the name to (Score 1)

Do you attach the name to the hardware, or the software?

I presume some people attach the name to the hardware, much like you'd name your car. In that case, it makes no sense to name the machine according to function, since that function will undoubtedly change over the lifetime of the machine.

Personally, I attach the name to the software, since I already use the serial number (or our own internal tracking number) to identify the hardware. Whenever I repurpose a machine, I always start over with a shiny new OS install, so the name can be changed easily. In this case, functional naming is probably more appropriate.