Serpent Statue is a statue of Queen Azshara herself. Upon closer inspection you'll notice something is missing.
There is also a statue of Queen Azshara in the Tomb of Sargeras, it looks more like a night elf but it has a tail. During the events of Warcraft III: The Frozen Throne it was found by Maiev.
Using the [Gem of the Serpent] on the statue will call forth Lord Kragaru for the quest  Book of the Ancients.
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