Microsoft Assimilated U3?

U3 is getting a boost (a rather big one) from Redmond. U3, co-developed by M-systems and Sandisk, is a closed source standard launched in 2005 that promises to deliver a simplified portable computing platform at a fraction of the cost of a laptop computer. The joint venture makes money from the royalty fee (5%) from flash drive manufacturers, such as Kingston, Memorex, PQI, Verbatim, who wish to implement U3 on their thumbdrives. Though, some companies, notably Kingston, reportedly quitted due to high IP fee. U3 adoption also somewhat slowed down as consumers fail to see the necessity of a mobile app platform. More details after the jump.

So, after some two years of struggling, Microsoft now steps in. Under the new agreement, Redmond will develop a new software which will ultimately replaces U3, and Sandisk will provide the hardware, based on TrustedFlash security. The details are still sketchy at best, but this cooperation hints more high-profile applications will get ported to the new USB apps platform and Microsoft will likely to work mobilizing desktop environment for Vista. Sandisk's TrustedFlash will do the encryption part. A new entity will be created to license compatible hardware designs, TrustedFlash and other intellectual property from both Microsoft and SanDisk, with revenues to be shared by the two companies. Commercial availability is expected in 2H 2008.

Filed under USB Apps for Flash Drives