During the transition, storage product channels will become segmented and two-tier distribution will

become less of a factor in getting the products to clients.

HP will work to embrace both the "classic HP" and the "classic Compaq" storage solution providers as
the two companies come together, said Mark Lewis, a Compaq and Digital Equipment veteran who is
now the head of worldwide marketing and solutions for the new HP's Network Storage Solutions
Group.

The company's solution providers will be divided into two groups--the enterprise channel and the
commercial channel, Lewis said.

The XP family and the Enterprise Virtual Array (EVA) high-end arrays, the upper portion of the VA
line, and all of the EMA and MA lines, will be sold through the enterprise channel, Lewis said.

The MSA and entry-level VA product lines, plus storage devices, entry-level autoloaders and entry-
level SAN equipment will go through the commercial channel, he said. For such products, HP plans to
align its storage sales strategies with the company's overall commercial channel strategy, which
includes printing and imaging products, industry-standard servers, and so-on, Lewis said.

"We're going to take very much what I would call a follower approach into the commercial channel
with respect to the other HP products," he said