An ultrasound diagnostic instrument includes a console having electronic circuitry for processing electrical signals for display including a digital processor and a memory for storing software for use with the processor, and a first connector coupled to the memory and processor. A transducer scanhead for generating ultrasound waves and receiving reflected ultrasound waves is connected through a cable and a second connector to the first connector and to the digital processor. A second memory external to the console is provided for communicating with the digital processor through the second connector, the second memory storing software and data necessary for use of the transducer scanhead in the ultrasound diagnostic instrument. The second memory can be provided in the transducer scanhead or in the second connector and can include operational data unique to the transducer scanhead, operational software for executing unique functions with the transducer scanhead, and updates and upgrades of system executable code that resides in memory within the console, thereby obviating the need for manual field upgrade or system swap when a new function, application, or transducer scanhead is required.