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Manufacturing Technology Insights | Friday, November 26, 2021
With the help of SCapital, Xyte has achieved $6.4 million in funding to build the first Hardware-as-a-Service cloud platform, which transforms the hardware industry from traditional models to new profitable, subscription-based sales.
FREMONT, CA: Hardware-as-a-Service (HaaS) results in lower upfront capital expenses, which enables firms to reallocate funds from the capital expense (CapEx) budget to the operational expense (OpEx) budget, hence improving cash flow. Xyte receives $6.4 million in a round led by SCapital to build the world's first Hardware-as-a-Service cloud platform, transforming the hardware industry's old business models into new, sustainable subscription-based revenue streams.
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“Cloud technologies have disrupted nearly every industry,” states Brookstein, CEO of Xyte. “Different industries are renowned for hardware innovation, but there is an enormous gap between hardware suppliers and modern cloud applications and services. Xyte paves the way for hardware suppliers of any industry to modernize their offerings and provide their integration partners and end customers start Xyte (previously known as SyncPro) in early 2020 because of their shared interest in the cloud."
By using Xyte, hardware manufacturers can run their whole HaaS operations in the cloud, better support their channels and consumers and create new sources of recurring revenue. This includes Xyte's "Digital Products," an innovative new concept that lets manufacturers remotely enable device functionalities through subscriptions. On the one hand, Xyte's invention helps customers elastically scale their products while helping manufacturers streamline inventory management and seize new upsell opportunities.
“People often think of HaaS as a subscription-based or financial model. However, successfully operating an HaaS business requires much more. It’s a paradigm change from customer acquisition to customer retention, and Xyte offers the complete toolset required to do so, from remotely supporting customers and resolving issues more efficiently through offering managed services, analyzing device usage and more – all in one unified platform,” Brookstein adds.
To help speed the platform's growth, Xyte has teamed with SCapital, headed by former Sequoia and Intel Capital partners (Haim Sadger and Aya Peterburg). SCapital has led a $6.4 million financing round.
Xyte provides a comprehensive platform that truly connects hardware and cloud while also encouraging innovation and business development among all users. This includes the introduction of Workplace by Xyte, a new agnostic platform designed exclusively for the professional Audio-Video (AV) market. Systems integrators and other service providers with complimentary access to the platform can now offer managed services to their customers, remotely managing and monitoring devices from an increasing number of companies.
Brookstein cites MSolutions' new business model, which is based on Xyte's platform, as a good illustration of the platform's revenue-generating capabilities. The company begins by allowing customers to subscribe to certain test apps straight from Xyte's cloud, such as a log analyzer for a HDBaseT installation or IP testing for AV-over-IP applications. MSolutions will soon provide a full HaaS model, allowing clients to pay a monthly subscription to access their award-winning equipment and receive full technical assistance via its dedicated Xyte site.
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