1. A method for grouping networked storage system components, the method comprising: associating a plurality of storage system components into a first group wherein the plurality of storage system components are associated with a client server system and comprise at least a plurality of storage system servers belonging to the first group; associating the first group with a first storage policy which defines one or more retention storage preferences and storage procedures to be followed by the storage system components in the first group; and in the event a first storage operation is performed on a storage system component associated with the first group, performing the first storage operation in accordance with the first storage policy associated with the first group; associating a plurality of storage system components into a second group, wherein the plurality of storage system components associated with the client server system in the second group comprise at least a plurality of storage system servers; associating the second group with a second storage policy which defines one or more retention storage preferences and storage procedures followed by the storage system components in the second group that are different than the retention storage preferences and storage procedures associated with the first group; and in the event a second storage operation is performed on a storage system component associated with the second group, performing the second storage operation in accordance with the second storage policy associated with the second group; reassigning one or more clients of the storage system associated with the second group to both the second group and the first group, the one or more clients associated with the reassigned storage system automatically inherits the first storage policy associated with the first group while retaining the second storage policy associated with the second group, and in the event a first operation associated with the first storage policy conflicts with a second operation associated the second storage policy, the storage policy associated with a higher priority controls; in the event a third non-conflict storage operation associated with the first storage policy is to be performed on the reassigned storage system component, performing the third storage operation in accordance with the first storage policy; and in the event a fourth non-conflict storage operation associated with the second storage policy is to be performed on the reassigned storage system component, performing the fourth storage operation in accordance with the second storage policy.