My latest meeting with the boys on the strategy committee caused me to reappraise a few things. Our biggest threat is HP, but we got a real problem growing this company. We need to think bigger.

EMC (NYSE:EMC) started a gunfight in the storage world today by offering an astonishing $1.8 billion for data deduplication sweetheart, Data Domain (NASDAQ:DDUP). This $30 per share offer one-ups rival NetApp (NASDAQ:NTAP) by $5 per share, which looked to have sealed the deal with a solid $1.5 billion offer on May 20. EMC’s offer is all-cash, while NetApp had mixed cash and stock.

Hiding in the shadow of the huge VMware vSphere 4 announcement was a very interesting introduction by EMC: PowerPath/VE. As I mentioned in my post on storage changes in vSphere 4, PowerPath/VE plugs into the new pluggable storage architecture (PSA) found in vSphere 4 versions of ESX and takes over the decision-making and heavy-lifting tasks related to communicating with storage systems.D