Why we invested in Xyte, a full-stack servitization platform
Device and hardware manufacturers are evolving from a sole focus on hardware sales to delivering comprehensive, integrated solutions encompassing hardware, software, and services. Inspired by industry leaders such as Tesla and Apple, this strategic shift acknowledges that success in the market now hinges on offering complete ecosystems rather than standalone products. Manufacturers are strategically combining hardware with software and services to forge enduring customer connections, foster recurring revenue through subscriptions, and showcase innovation in a dynamic market landscape.
Xyte capitalizes on this market shift by providing a tailored solution for manufacturers that are looking to engage customers with additional services and capabilities. Recognizing the impact of hardware commoditization, inflation, and supply chain constraints, Xyte is helping hardware manufacturers to achieve new revenue streams. We invested in Xyte because of their pioneering approach to facilitating “hardware-as-a-service” business models. What began as a quest to simplify device connectivity and management in the cloud has evolved into Xyte Device Cloud (XDC), a leading platform assisting original equipment manufacturers (OEMs) to generate increasing revenues from their existing devices.
Addressing post-warehouse control challenges, XDC offers a robust cloud infrastructure, a user-friendly no-code platform, and applications for e-commerce, support, analytics, and finance tools. This comprehensive solution supports hardware businesses in navigating digital transformation, enhancing customer engagement, and embracing subscription-based business models for future growth. Xyte’s comprehensive servitization platform offers OEMs a centralized interface for overseeing and tracking operational hardware data – often considered a necessity by financial partners.
We’re excited to join Xyte’s latest $30 million funding round, alongside Intel Capital, S Capital and Mindset Ventures. As enterprises increasingly adopt the “as-a-service” model for devices and services, Xyte is positioned to provide these enterprises with extensive insights into their value chains. This will enable manufacturers’ to enhance the overall customer experience and nurture their relationships with end users.
If you are a hardware manufacturer looking for new and innovative ways to engage with your end customers, I invite you to check out Xyte’s servitization platform.
Avigail Levine is an investor at Samsung Next. Samsung Next’s investment strategy is limited to its own views and does not reflect the vision or strategy of any other Samsung business unit, including, but not limited to, Samsung Electronics.