Japanese company, Umazone provided the original external hard drive, Umazone UMA-ISO, capable of emulating stored on the ISO-image of media CD and DVD.
When Umazone UMA-ISO is connecting to a computer via a USB 2.0 or eSATA, it is an automatic loading ISO image. In other words, the connection of Umazone UMA-ISO to PC is similar to the installation CD or DVD in an ordinary optical drive. This eliminates the need to install and configure of software emulators like Daemon Tools or Alcohol.
New Umazone UMA-ISO is executed in the 2.5-inch form factor, it is equipped with a small LCD display, which shows information about the selected ISO image. The navigation through the ISO images of disks can be set with buttons on the device.
Umazone UMA-ISO external HDD will work on Windows 7, XP, and Vista. It is worth about $112. This amount does not include the actual hard drive for data storage, Umazone UMA-ISO is only an enclosure.
Source
Umazone UMA-ISO automatically mounts your DVD images
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