MachineShop Emerges from Stealth With $3M In Funding
March 20, 2014

MachineShop Emerges From Stealth With $3M In Funding

Enid Burns for - Your Universe Online

Internet of Service company machineShop just grabbed $3 million in equity financing from investors CSR, Diebold and Xchanging, which are also customers of the startup.

MachineShop launched with the goal to help simplify and standardize the way organizations, individuals, applications and systems interact with each other through the World Wide Web. The company seeks to aid data transactions and interactions with Internet of Services, often referred to as Internet of Things, where communication happens through standard services or application program interfaces (APIs). These methods replace legacy platforms, middleware or proprietary protocols.

Strategic investors in the $3 million round include CSR, a designer and developer of silicon and software for the consumer electronics market; Diebold, a provider of self-service technology and security systems; and Xchanging, a business process, technology and procurement services provider. All three companies signed on as clients with MachineShop while the start-up worked in stealth mode.

“Diebold has a deep commitment to leveraging emerging technologies to deliver differentiated products and services to its customers worldwide,” said Tony Byerly, Diebold executive vice president, Electronic Security, in a corporate statement. “MachineShop has been an important partner for our security business in supporting our services-enablement strategy, and we are enthusiastic about their future.”

Companies such as CSR recognize the need for a company that will connect services through data and programming.

“The Internet of Things will not be built around products alone. As the market evolves, services will become increasingly important, and MachineShop understands that aspect of the market,” said Will Gardiner, CFO, CSR, in a corporate statement. “We are investing in MachineShop because its technology eliminates complexity by simplifying and standardizing the way information is managed so that physical and virtual assets and services can work together in one integrated system.”

Internet of Things is a growing sector. Research firm Gartner projects that Internet of Things vendors will see a combined $309 billion in direct revenue by 2020.

“There are few market opportunities that can be measured in trillions of transactions, but the Internet of Services is one of them,” said Michael Campbell, CEO, MachineShop, in a corporate statement. “Not only is the Internet of Services bigger than the sum of all the connected devices in the world, it’s more valuable financially to enterprises, developers, hardware vendors and ultimately to the consumers of all things connected.”

There is a need for start-ups to fill the space and connect the dots between connected devices and the actions they can perform, TechCrunch suggests.

"Given where IoT is today in terms of early pilots and aggressive push by companies such as Google to make sure they have all the pieces in place to earn billions in incremental revenue some years from now, the opportunities for startups are many," wrote Pankaj Mishra of TechCrunch.

Chip maker Intel believes that there will be about 31 billion connected devices by 2020, "and all of them will be speaking different languages," Mishra wrote. This is where MachineShop, and other companies, fit in. MachineShop's goal is to create standards that will be used across all connected devices, to create an ease of use for the consumer.