There is a battle going on behind the scenes over the location of storage's soul: the controller hardware and software. Oracle, Dell, EMC and VMware want it to be in the server, while NetApp and HDS want it to be in the array, an array operating with servers but distinct from them. The picture is not as clear-cut as this on the …
Don't see much of a quandary here
There will be a few customers that will buy into the overpriced servers in an overpriced EMC box "vision", just like there were several customers who bought several units each of the Cisco UCS money pit and thought that it was a really good idea to pay twice as much per Intel processor from Cisco as you should pay from any of the server vendors. Presumably the habit of paying more than the network kit was worth was so addictive they wanted to do it for servers too?
In the meantime those customers who didn't get arrested with a hooker on their drunken night out with the sales person will sidestep this particular turd on the pavement (dog dung on the sidewalk) and buy non lock-in commoditised product where the server and the storage are cheap and leverage the same management software tricks you need to make the server in storage trick work to make the economic version work instead.
In our "open systems" world, storage has always been something external to the OS.
DAS, iSCSI, FC, FCoE, etc: there's no fundamental difference, It's simply a target at which an OS throws SCSI commands in order access logically addressed blocks over some sort of 'wire'. Even under NAS, it's the same story. Everything the storage industry has done to date is an attempt to make the handling of the block servicing operations more intelligent (or, perhaps, improve the guesswork of what's likely to happen next).
Protocols, that's it, common protocols.
If the protocols changed, or were thrown away, then you have an opportunity to go somewhere different. To realise that goal the server has to come to the storage or the storage to the server & bypass the established protocols.
We used to do storage on servers, we outgrew that & begat the storage array business.
Now servers are just boxes of cpu cycles & memory servicing an OS or hypervisor.
Ah, yes, the hypervisor. It hasn't found its home. Yet.