can you give suggestions on building a small cloud?

i am looking to build a small cloud based solution with the minimal expensise needed.

i can get a HP blc7000 chassis, fully loaded with 16 blades and each blade has 16 gigs all for around $7000.
my budget is $10,000

what i need help is finding a NAS / SAN / iSCSI solution within that 3 grand range. any thoughts?