StartKey - Your Windows Settings on your USB Key chain (coming soon to a developing nation near you)

All About Microsoft - Microsoft preps StartKey: A ‘Windows companion’ on a USB stick (Mary Jo Foley)

"Microsoft has some big plans for the small-sized storage devices.

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.

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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.

Customers in developing nations are going to be a prime target for Microsoft with StartKey, my sources say. In these markets, StartKey becomes a way for Microsoft to reach billions of users in developing countries who might not have their own Windows PC at home, but who can get access to one at school or can log on via a shared Internet kiosk.

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But back to StartKey. Microsoft has started talking up its StartKey vision among potential OEM partners. In the developed world, Microsoft is positioning StartKey as being securely and seamlessly integrated with Windows-based PCs and Windows Live services, I hear.

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Can I just say that while I don't live or work in a Developing nation, I REALLY want this? Actually I want two, one for personal life and one for work.

Done right, this could help in a huge number of areas. USB drives are getting huge. Think app's installed on the drive, and data in the cloud. Your key (also maybe used as part of two form security/authentication?) is "you" and the host is a clean, locked down OS. Plug-in, the OS says hi and configures itself for you. When you unplug that OS resets to plain vanilla. Stop dragging your notebook everywhere, all you need is your key...

Since the app's are installed on the key you don't have to worry if the host has them or not. Also means you only need to buy the app's once. A "per-person" license model now really makes sense. And virtualized app's (via MS Application Virtualization/SoftGrid) means that maybe the app's would not have to be changed much to work? Data in the cloud means it's available almost everywhere (or maybe even better, data is locally cached on the key and sync'ed with a copy in the cloud, giving you offline capability.)

Oh yeah, done right, this could be something very cool... (Even change the way we see and use computers? From a "my notebook with my apps and my data" to a "my key" and computing appliance)