See: "http://www.eweek.com/article2/0,3959,672286,00.asp";

IBM has recombined its server and storage businesses into a single division,

following a split two years ago, officials said Wednesday.

Bill Zeitler, senior vice president and group executive of IBM's Server
Group,
will head the new division, said Clint Roswell, spokesman for the Armonk,
N.Y., company.

"We go to them together as one thing, as hardware," Roswell said. "Two years

ago the storage group was siphoned off. The whole storage industry was
mushrooming
without us. EMC was taking control. EMC's share was $114," he noted,
referring to
EMC Corp., of Hopkinton, Mass. At the time, "We basically looked at
[separating
the storage group] like a startup," he said.

Merging the groups will not involve consolidating any hardware, Roswell
said.

Also, Linda Sanford, former senior vice president of the company's Storage
System
Group, will take over IBM's recently announced On Demand computing efforts,
Roswell said. Sanford's new title is Senior Vice President, Enterprise On
Demand
Transformation.

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