HP has created a new server and storage software unit, with StorageWorks boss Bob Schultz effectively demoted to run it.

The new storage and server software division will have just four products to look after:

  • Insight Manager (cross-platform server and storage management)
  • Storage Essentials (the AppIQ purchase for storage management)
  • Virtual Server Environment (Vmware type stuff)
  • ProLiant Essentials (ProLiant server management)

More products will probably join them. It is part of HP's Enterprise Storage and Server (ESS) organisation, and its role is to "advance software capabilities that help customers manage, virtualise and automate their IT systems".

Schultz is general manager responsible for strategic planning, product development and product management. The basic idea of the new unit is higher sales through a better focus. Or, in HP speak: "The new unit is chartered with differentiating HP’s current server and storage software and developing additional capabilities to help companies build out an Adaptive Infrastructure that flexes with business priorities. Through the unit, HP also will drive open standards and broaden support for its server and storage platforms."

HP chief exec Mark Hurd is not happy with HP's storage business, which has been looking sickly, particularly compared to the rest of HP. Storage revenues grew just one percent in the last quarter, prompting Hurd to comment: "We are not happy with our storage growth in the fourth quarter and we need to do a better job driving top line momentum in the coming year."

It seems StorageWorks senior VP, Bob Schultz, is to carry the can for that. StorageWorks sells disk arrays, storage software, tape storage and media and is the second-largest supplier of storage in the world according to IDC. Hurd mentioned declines in the high-end array and tape businesses. On the tape side, HP's DAT160 follow-on to DAT72 is reckoned to be late.

Schultz, 48, has been a storage industry heavyweight for more than twenty years. Before joining HP in 2002, he was Adaptec's COO, and server storage VP at Compaq. Schultz continues as StorageWorks head until a successor is appointed when he will give up that job, making him a caretaker manager for StorageWorks until then.