An application server blade for an embedded storage appliance is disclosed. The blade includes a printed circuit board (PCB) with a connector for connecting to a chassis backplane including a local bus. Affixed on the PCB is a server, a portion of a storage controller, and an I/O link coupling the server and storage controller portion. The server transmits packets on the I/O link to the storage controller portion. The packets include commands to transfer data to a storage device controlled by the storage controller. The storage controller portion receives the packets from the server on the I/O link and forwards the commands on the backplane local bus to another portion of the storage controller affixed on a separate PCB also enclosed in the chassis. The blade also includes a removal mechanism for hot-replacement of the blade in the chassis. The blade architecture facilitates software reuse.