Xiotech Corporation has delivered highly virtualized, easy to use storage systems to thousands of customers over the past twelve years. ESG Lab validated Xiotech's Magnitude 3D family of clustered storage systems in 2003 and application-level disaster recovery capabilities in 2005 and was impressed with the systems' resiliency, scalability and ease of management. This report examines the Intelligent Storage Element (ISE), an integral component of Xiotech's new Emprise 5000 and Emprise 7000 storage systems, and its ability to enhance the availability, reliability and performance of storage systems.