ST Electronics debuts DigiSAFE DCM200 smartcard-protected HDD enclosure

Update: ST Electronics clarified with us that this price is actually $99, not $999 -- that's quite the relief!

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$1000 for just the case? Rough...
I really think software level encryption aught to be good enough for anyone, but what do i know, i'm not that paranoid...
Its for people hiding info on black ops movements, foreign accounts and drug transactions, so they got money to burn.
It isn't good enough.
If you wanted the data, since this is all hardware, couldn't you just take the hard drive out of the special case and end up with an unencrypted hard drive?
I believe the hardware encryption acts as the man the middle between the interface and the hard drive ... so the data residing in the hard disk is always encrypted. Remove it and you have a drive containing encrypted data.
Couldn't someone just take the harddrive out of the enclosure and all that security is gone?
Hardware encryption is needed badly to maintain performance and security. An external enclosure is nice but I'd prefer the embedded controller implementations directly on the drive; especially for laptops. All too often we hear of laptops lost or stolen with social security numbers, accounting data, ...
The electrical contacts on that "card", look just like the ones on my AT&T SIM card...
That's because a SIM card is a smart card.
The unit will actually start from US$99, not the $999 reported, which is probably a typo. And since this features hardware encryption, the contents of the enclosed drive are all encrypted. Therefore, even if you dismantle the drive, you will not be able to access it. Effectively, the drive is useless without the unit, smart card and PIN.
Great standalone implementation of drive-level Full Disk Encryption (FDE). The box is a relatively trivial feature. It's the key management that is the value add of this product. FDE is so secure that if you lose your password, so might as well throw the drive away.
storageeffect.com