Elias Hops Aboard EMC Express

The one-way shuttle bus from Hewlett-Packard Co. (NYSE: HPQ) to EMC Corp. (NYSE: EMC) is still running at regular intervals, as Howard Elias -- who was tapped last year to head up the merged HP/Compaq storage group -- has accepted a "high-level position" at EMC, according to a source familiar with the situation.

The source adds that an announcement from EMC on Elias's appointment is expected as early as this week.

Asked to comment, EMC spokesman Michael Gallant said: "Generally, when we do announcements of new executives we do it in a press release form to distribute it broadly." He declined to say anything else except to add, "We have your phone number." Elias could not be reached for comment.

Last month, Elias quit HP after spending five months as senior VP of business management and operations in HP's Enterprise Systems Group. (HP has said it will not hire someone to replace Elias.) He had been put in charge of HP's storage operations in April 2002, when the company acquired Compaq Computer. Bob Schultz, formerly COO of Adaptec Inc. (Nasdaq: ADPT), took over as VP of the storage group when HP combined its server and storage in May 2003 (see Elias Flees HP, HP Fuses Server, Storage Units, and HP Names Storage Chief).

Sources told Byte and Switch last month that Elias may have been heading to EMC. Late last week, a source knowledgeable of the situation told us that Elias is definitely bound for a "high-level" spot in Hopkinton.The one "high-level" position that EMC still has vacant is that of chief technology officer -- left open after ex-HP'er Mark Lewis was moved over to head up EMC's open software group. Lewis joined EMC last summer after a stint as HP's VP of storage marketing (see EMC Sics Lewis on Software and Lewis Quits HP for EMC).

Another HP executive who recently defected to EMC is Mark Sorenson, formerly VP of HP's storage software group (see HP Exec Bolts for EMC and EMC Hires Sorenson, Promotes Two). Other departures from HP's ranks include Roger Archibald, formerly VP of NAS products; John Jackson, who has left as director of Americas business continuity services group to join IBM Corp. (NYSE: IBM); and Hugh Jenkins, VP of marketing in HP's server group.

The spin out of HP regarding this exodus is a bit curious. According to one HP insider, the company is actually better off without the recently departed execs, who were "packages coming due." But this smacks of sour grapes and revisionist history: If these execs were really past their prime, why did HP keep them around?

The question now is whether HP can close ranks -- and keep its most experienced hands from abandoning ship.

Eugénie Larson, Senior Editor, and Todd Spangler, US Editor, Byte and Switch