Microsoft and SanDisk still working on StartKey - the new U3 replacement

Microsoft is working on turning USB-based flash drives into a “Windows companion” — a new product known as “StartKey” — that will allow users to carry their Windows and Windows Live settings with them.

StartKey isn’t just for USB sticks; it also will work on other flash-storage devices, like SD memory cards. Microsoft is looking to turn these intelligent storage devices portable “computing companions” for users in both developed and emerging markets, with availability (at least in beta form) likely before the end of this year, according to sources who asked not to be named.

Microsoft’s goal is to build an end-to-end StartKey environment — comprised of everything from system software on the flash devices, a software development kit to enable third-party developers to create products that can leverage StartKey, and accompany Microsoft applications and services, sources said.

StartKey will make these flash devices more Windows-centric. StartKey devices will be customized to plug into Windows machines. They will allow users to bring everything from their desktop wallpaper, to their desktop icons, contact lists and data with them so that they can turn any PC or kiosk into their own, personalized workspaces.

Read more here (ZDNet)