IBM Reunites Server, Storage Businesses

Merging the two groups will not involve consolidating any hardware, say IBM officials.

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 IBMs 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. EMCs 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 companys Storage System Group, will take over IBMs recently announced On Demand computing efforts, Roswell said. Sanfords new title is Senior Vice President, Enterprise On Demand Transformation.