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HP Fuses Server, Storage Units: Page 2 of 4

The merged ESS hardware group will be run by Scott Stallard, who previously was in charge of HP's Business Critical Systems unit. Four product line VPs will report to Stallard. Network Storage Solutions will be headed by Bob Schultz, previously VP of the HP Network Storage Solutions marketing and solutions team. Schultz was previously COO of Adaptec Inc. (Nasdaq: ADPT). The other product line executives in ESS include Pauline Nist for NonStop Servers; Rich Marcello for Business Critical Systems; and Brad Anderson for Industry Standard Servers.

A former HP storage executive, who wished to remain anonymous, says Schultz's appointment "was not unexpected, but the rank and file are not convinced that he is The Man."

Howard Elias, who was previously general manager of HP's storage group, will become senior VP of a new group, called Business Management and Operations. Elias will now be responsible for "managing strategy, planning, and business operations for ESG," HP said in a statement.

John Webster, senior analyst and founder of the Data Mobility Group, says unlike the IBM decision to merge its server and storage groups, HP's move appears to be all about cost structure.

"Comparing the two, HP's is trudgingly matter-of-fact," he says. "Id give IBM at least a point or two for visioneering." [Ed. note: I'd give John a point or two for silly wordplay.]