2011
03.17

Machine to Macheen

We had a chance to speak with Richard Schwartz the other day, who is president and CEO of a company named Macheen. And if you think that company name sounds unique, wait until you hear its vision for the market.

Launched earlier this month, Macheen offers a cloud-based service platform that enables consumer devices to be connected right out of the box, or as Schwartz calls it, “hot out of the box.” Macheen’s business model is for device makers and retailers to sign on as tenants of its platform and work with the company to customize its “white label,” pre-connected broadband data service to best fit their device rollout plans. Macheen manages payments, settlements, and customer service for the device maker or retailer, essentially taking the hassle of being a “connected expert” out of their hands so that they can concentrate on their core business instead.

Schwartz says he is working with consumer electronics products with “large interactive displays” which means tablets, laptops, and gaming devices, among others. It’s an interesting model and one that could open up new options in the value chain—or collapse a few, at this point I am not too certain.

What I do know is the company already has one big name under its belt, Dell which is using Macheen for its Dell NetReady. The new integrated mobile broadband service from Dell is available on select laptops in Germany. With plans to roll out to other regions in 2011, Dell says NetReady offers flexible, pre-connected Internet with no commitment. The role of Macheen is to provide its platform, which is built on wholesale broadband agreements with different network providers.

The business model that Macheen is offering seems unique and could change the business model for retailers in the way the Kindle did for Amazon.com. Perhaps that’s getting ahead of myself, but you have to admire Schwartz’s vision for the market. We like to think that part of his inspiration for Macheen came from attending the Connected World Conference in 2010, an event where he tells taught him a great deal about the market.

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