But the fact that HP is subsuming storage into a larger server-oriented group may lead some observers to believe that it's downplaying its storage focus. That's obviously how EMC Corp. (NYSE: EMC) is spinning the latest machinations by one of its main rivals.
"While the big guys like HP and IBM continue to move towards the 'watering down' of their investments and innovation in storage, EMC is expanding its product portfolio," says EMC spokesman A.J. Ragosta.
Blackmore, though, says the combination of the server and storage groups will result in greater growth opportunities: "Our argument is that we've overtaken EMC... We have a lot of benefits that EMC doesn't. It will be harder for EMC to compete as a standalone storage vendor."
HP said there are no layoffs associated with the reorganization. "We're through the bulk of the restructuring," Blackmore says.
The company also said it will make no changes to its Software Global Business Unit, which is run by senior VP Nora Denzel, who was VP and general manager of HP's storage group before the Compaq merger.
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