New standard targets $1.7 billion USB flash market

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Sep. 07, 2004

Long-time flash memory adversaries SanDisk and M-Systems have inked a deal to collaborate on a next-generation USB flash drive standard that they plan to license to third-party manufacturers. The arch-rivals say they will engage in strategic collaboration and patent cross-licensing in an effort to "jointly develop and promote the next-generation USB flash drive platform" that will "establish technology standards [that] enhance the usability and functionality of USB flash drives in a wide range of applications."

Both companies will contribute patents and other intellectual property relating to removable flash storage to the new USB flash drive standard, an initiative which they say will produce a standardized platform that will support third-party software applications for consumer and enterprise use.

The market for USB flash drives is expected to grow from $572 million this year to $1.7 billion in 2007, according to Gartner research cited by SanDisk and M-Systems.

The new USB flash standard will not be bound to a specific physical form-factor such as the USB "thumb drives" pioneered by M-Systems with its DiskOnKey product, according to Blaine Phelps, director of worldwide marketing for M-Systems's DiskOnKey product line. Rather, the standard will define application programming interfaces (APIs) and other functional characteristics and specifications, enabling the development of applications that make use of the embedded processors within the USB flash drives. M-Systems embeds a 32-bit ARM7 processor in its Smart DiskOnKey, which for several years has had the ability to perform functions such as encryption/decryption and data syncing, Phelps says. DRM (digital rights management) is a future possibility, he adds.

"Our collaboration with SanDisk represents an evolution of our current Smart DiskOnKey Platform to a new and much more powerful standard platform that will enable M-Systems to realize its vision on a larger scale," said Arnon Dinur, vice president and general manager of M-Systems's DiskOnKey division. "The new standards will accelerate the already rapid growth of the category by offering unparalleled value through a wealth of exciting applications for the user."

Dov Moran, president and CEO of M-Systems, said, "This collaboration signals the birth of the next generation of USB flash drive technology."

Eli Harari, president and CEO of SanDisk, said, "SanDisk and M-Systems share a common vision of a world in which computing revolves around the user and their portable storage needs. We have a great deal of respect for M-Systems' product innovations and are confident that the combined strengths of SanDisk and M-Systems will create a compelling new standard in USB flash drives that should enable exciting new applications and new market segments that will unleash the creative power of independent, third party developers worldwide."

M-Systems claims to be the creator of the popular USB flash drive category, while SanDisk says it is the pioneer and worldwide leader of flash cards.

Details of the new standard will be unveiled at the Consumer Electronics Show (CES) in January 2005. First products based on the new standard are expected to be released shortly thereafter.

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Use of this site is governed by our Terms of Service and Privacy Policy. Except where otherwise specified, the contents of this site are copyright © 1999-2008 Ziff Davis Enterprise Holdings Inc. All Rights Reserved. Reproduction in whole or in part in any form or medium without express written permission of Ziff Davis Enterprise is prohibited.