Ozlo, the company behind the popular Sleepbuds, is strategically evolving its business model from consumer hardware to a platform-centric approach, aiming for higher revenue streams and a deeper market penetration. This shift includes forging partnerships, developing premium software features, and venturing into the medical device sector.

The company's move gained momentum last month with the announcement of a partnership with the meditation app Calm. At the Consumer Electronics Show (CES) in Las Vegas this week, Ozlo actively sought new partnerships to broaden its reach. The goal is to diversify revenue beyond direct consumer sales of its Sleepbuds and tap into the more lucrative software subscription and healthcare markets. Premium software features, potentially leveraging AI or targeting conditions like tinnitus, could be offered as subscription services. Ozlo's recent acquisition of a neurotech startup further supports its ambition to enter the medical device market.

This strategic pivot reflects a broader trend in the tech industry, where companies are increasingly seeking recurring revenue models through software and services. The healthcare and wellness sectors, in particular, offer significant growth opportunities for companies capable of leveraging data and technology to improve patient outcomes and user experiences. Ozlo's move positions it to capitalize on this trend, potentially attracting further investment and partnerships.

Founded by former Bose employees, Ozlo initially focused on creating comfortable, user-friendly Sleepbuds designed to block out external noise. From the outset, the company envisioned building an ecosystem around its product. According to Ozlo co-founder and CEO NB Patil, the company built its iOS and Android SDK with this platform approach in mind.

Looking ahead, Ozlo's success will depend on its ability to effectively integrate its hardware with software and healthcare solutions. The company's platform strategy has the potential to transform Ozlo from a hardware provider into a comprehensive sleep health company, offering a range of products and services to a wider audience.