The SDS system is marketed as the natural replacement for the drill chuck but it has so far failed to kill off the humble drill chuck. In terms of features it offers a number of advantages over drill chucks but also a few moderately serious drawbacks. The SDS system was first developed in 1975 by Bosch to improve the hammer action of hammer drills. With a standard drill chuck any hammer action has to, by necessity, move the entire chuck or at least a good portion of it since the bit is held tightly in the chuck jaws. With the SDS system the bit can move forwards and backwards inside the chuck. This is a great advantage as it means the bit can be hammered much harder than otherwise possible making drilling through tough materials easier. Many SDS drills also have a "rotation off" setting which allows drills to act like powered chisels.

A bit, or other tool, is inserted into the chuck simply by pressing it in at which point it locks automatically. To remove the bit a release ring is pulled back to disengage the locking mechanism. There is no tightening as the bit is designed to fit the chuck. Torque is applied to the bit through grooves that run along the edge of the bit and are open at the top. There are also closed grooves that accept ball bearings which hold the bit while the hammer action is applied.

There are three sizes of SDS shank: plus, top and max. Plus is the most common and has a 10mm shank with two driving grooves. Top has a 14mm shank again with two driving grooves. Max sports an 18mm shank with three locking and driving grooves.

The down side of the SDS system is the limited range of bits available and the higher cost of those bits that there are. Having said that SDS drills tend to be used for much heavier duty work than is possible with a normal hand drill, such as drilling through concrete, where the stronger hammer action easily offsets the disadvantages.