M-Systems Flash Disk Pioneers (Nasdaq:FLSH) and SanDisk Corporation (SNDK) today announced that they have signed a strategic collaboration and patent cross-license agreement to jointly develop and promote the next-generation USB flash drive platform.
The companies stated that the collaboration will establish technology standards to enhance the usability and functionality of USB flash drives in a wide range of applications. The collaboration also opens the door to a standardized platform on which third party software application developers can develop new applications for consumer and enterprise use.
Once the new standard is established, the two companies intend to license it to foster industry-wide adoption.
"This collaboration signals the birth of the next generation of USB flash drive technology," said M-Systems president and CEO Dov Moran. "Combining SanDisk's marketing and standards-setting expertise with M-Systems' USB flash drive innovation and market position will ensure a feature rich product that will provide true added-value to users and businesses."
"SanDisk and M-Systems share a common vision of a world in which computing revolves around the user and their portable storage needs," said SanDisk president and CEO Eli Harari. "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."
Details of the new standard will be revealed at the Consumer Electronics Show (CES) in January 2005. Both companies expect the first products based upon the new standard to be introduced through select channels soon after.
According to research and advisory firm Gartner, the market for USB flash drives is expected to grow from $572 million this year to $1.7 billion in 2007.
Published by Globes [online] - www.globes.co.il - on Tuesday, September 07, 2004