Xyte is a company that has developed the first all-in-one servitization platform purpose-built for device and hardware manufacturers. And it enables OEMs across different industries to cloudify, service, support, and commercialize their connected devices in one place, transforming them into integrated business solutions that combine hardware, software, and services. Pulse 2.0 interviewed Xyte CEO and co-founder Omer Brookstein to learn more about the company.
Omer Brookstein’s Background
What is Brookstein’s background? Brookstein said:
“I have a military background in strategic intelligence and a professional background in manufacturing. I co-founded Crestron Electronics’ Israel office, where I oversaw enterprise sales of state-of-the-art workplace solutions to Dell EMC, McKinsey & Company, Applied Materials, and other leading corporations.”
Formation Of Xyte
How did the idea for Xyte come together? Brookstein shared:
“At the end of the day, it’s about identifying a pressing need. The better a company can fill such a need, the more successful it can be.”
“For years, hardware commoditization has been taking its toll on device and hardware manufacturers. It has become increasingly difficult to stand out from the competition. Technology has opened up doors to new and innovative business models that could be game changers for these original equipment manufacturers, but for many, and even most, it’s too challenging to adopt and introduce these models. It’s not their core competency and there are so many moving parts.”
“My co-founder Boris Dinkevich and I saw the success enjoyed by tech leaders like Tesla and Apple, who reached great heights by offering integrated business solutions that include hardware, software and services. We knew that if we could empower OEMs to transition towards offering such integrated solutions, the sky would be the limit for them – and us.”
Favorite Memory
What has been Brookstein’s favorite memory working for the company so far? Brookstein reflected:
“There is a lot to choose from. If I had to choose one, it would be the first time an end-user entered their credit card to subscribe to the first-ever device-as-a-service that our customer was offering. This moment, ever so small, demonstrated that our vision had become a reality.”
Core Products
What are the company’s core products and features? Brookstein explained:
“Our platform is called Xyte Device Cloud (XDC). It’s a full-stack servitization platform that is purpose-built for device and hardware manufacturers across different industries to cloudify, service, support, and commercialize their connected devices in one place, transforming these devices into integrated business solutions that combine hardware, software, and services. With XDC, device and hardware manufacturers can manage the complete lifecycle of their connected devices – from the minute they leave the warehouse to the moment they reach customers and through aftermarket sales.”
“With this platform and its out-of-the-box applications for asset management, remote support, ecommerce & subscription management, and financing, our customers gain market share, implement as-a-service business models, optimize operational efficiencies, and of course, develop sustainable customer relationships.”
Challenges Faced
What challenges has Brookstein and the team face while building the company? Brookstein acknowledged:
“Since our solution is all-in-one and we enable new business models for customers across diverse industries, there are invariably going to be lots of different challenges. There’s no silver bullet to overcoming them. Rather, it’s about putting in the time and energy to truly listen to our customers. That’s the only way we can understand them and help them overcome their challenges.”
Evolution Of Xyte’s Technology
How has Xyte’s technology evolved since launching? Brookstein noted:
“We are in the process of launching new features for XDC. In January, we launched Xyte Connect, which enables OEMs and their value chain partners to share data through the cloud and collaborate on device configuration, setup, support, updates, and monitoring & management. In the coming months, we will release new features focused on remote connectivity, equipment financing, and more.”
Customer Success Stories
After asking Brookstein about the company’s customer success stories, he highlighted:
“Middle Atlantic Products is a brand within Legrand, a leading global provider of innovative mounting and display solutions for various audio-visual technologies. It manufactures IP-connected power distribution units (PDUs) for AV systems in residential, commercial, broadcast, and security applications.”
“Middle Atlantic offers its customers remote power management for the integrators that install these PDUs. In practice, this means being able to turn outlets on and off, receive alerts, and monitor telemetries. However, this remote management often creates network security concerns for Middle Atlantic’s customers’ IT departments. To assuage these concerns, the company needed a cloud solution that could enable secure remote connection.”
“It considered building a solution in-house, but it would have taken lots of time and money. After all, building cloud solutions isn’t Middle Atlantic’s core competency. Instead, the company turned to Xyte to deploy a solution in a short timeframe – one that came with any and all out-of-the-box features that Middle Atlantic’s customers required.”
“Within a few months, Middle Atlantic launched RackLink Cloud. Powered by Xyte Device Cloud, RackLink Cloud enables integrators to proactively monitor and manage Middle Atlantic’s enterprise-grade PDUs securely from any location.”
“By tracking real-time power consumption and voltage conditions of its PDUs, Middle Atlantic now gains the key data points it needs to provide remote support. This better enables customers to save energy and even makes the Middle Atlantic better positioned to expand its product line and set of services.”
“We are quite proud of our work with Middle Atlantic Products, and this is just a taste of what we do. Xyte supports connected devices for market-leading companies in numerous verticals – from industrial and smart buildings to robotics, medical and automotive.”
Funding
After asking Brookstein about the company’s funding, he revealed:
“We have thus far raised $37 million, including $27 million in equity and $10 million in venture lending.”
“In January, we announced the completion of a $30 million investment round. This included $20 million in Series A funding led by Intel Capital, with participation from Samsung Next and existing investors S Capital and Mindset Ventures, as well as $10 million in venture lending from BlackRock.”
Total Addressable Market
What total addressable market (TAM) size is the company pursuing? Brookstein assessed:
“If I try to quantify the TAM, by the time we reach it, the potential TAM will have grown severalfold.”
“We are determined to support connected device manufacturers in every industry, and every company that manufactures connected devices and wants to succeed with the hardware-as-a-service business model needs the kind of off-the-shelf software stack that we offer. We have our sights set on shaping the entire ecosystem of companies manufacturing connected devices.”
Differentiation From The Competition
What differentiates Xyte from its competition? Brookstein affirmed:
“On the one hand, there is no shortage of software solutions for collecting and analyzing data, but these solutions don’t have a direct impact on business and commerce. On the other hand, there are also powerful business and commerce solutions that lack the ability to harness the power of connectivity.”
“What differentiates Xyte from the competition is that we bridge the best of these two breeds. We provide a business and commerce solution powered by connectivity. In so doing, we straddle the worlds of software and hardware in a way that no one else does.”
“Instead of charging customers according to the number of devices they connect (which is typical of IoT management services), we incentivize our customers to connect more devices rather than fewer. This means more data, which in turn empowers our customers to make more informed product and business decisions.”
Future Company Goals
What are some of the company’s future company goals? Brookstein concluded:
“Our goal is to provide OEMs with full visibility of their value chains and enable them to better manage and operate their connected devices.”
