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.

Microsoft's StartKey initiative will reportedly be "seamlessly integrated with Windows-based PCs and Windows Live services," and it's coming by the end of this year. The tool should naturally be useful to anyone who regularly uses multiple PCs, but ZDNet adds that Microsoft is also targeting developing markets, where users often lack a personal PC and use machines at Internet cafes or kiosks.