A new startup by the name of Ayla Networks aims to create the Internet of Things all around you by building their software into everyday products. They’re off to a solid start already with $5.4 million in financing led by Crosslink Capital and Voyafer Capitol – money that could go a long way towards making their vision of a fully connected world a reality.

Here’s how it’ll all go down. Ayla will work directly with OEMs to embed their software into select household products like thermostats and appliances. The Ayla platform consists of a cloud service for hosting and managing devices, application libraries and Wi-Fi enabled modules / IP gateways. The three components are designed to work together so OEMs as well as customers have to do as little as possible to get up and running.

Each manufacturer will be required to pay a one-time fee for services, unlike some competitors that use a costly subscription model. Ayla CEO and co-founder David Friedman said ongoing subscriptions make the cost of adding new connectivity complicated and unpredictable. He said they live and breathe in this world and understand how to get technology into mass production.

Ayla already has 21 employees working in Sunnyvale, California, but a lot of their business is expected to take place in China. That’s because the company has already signed their first major customer, Sina. This is one of China’s largest Internet portals with more than 500 million registered users.