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Encryption scrambles the data stored inside hard disks, making it difficult or impossible to read the files without the right password. This protects confidential personal and business data if a notebook is lost or stolen.

Some versions of Vista and Windows 7 come with built-in whole disk encryption (also called full disk encryption, on the fly encryption or file system encryption). However third party free and commercial encryption software still have their place.

These disk encryption systems are easy to use compared to individual file encryption systems (MS Office built-in encryption, 7-Zip and other compression-with-encryption utilities). The password needs to be entered only once, either before or after the operating system boots up. Files placed into the hard disk are automatically encrypted when saved and decrypted when opened. This is transparent to the user. However they do have a few disadvantages:

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