Systems and methods for augmenting the functionality of a device using a virtual machine monitor is provided. In general, in one aspect, a computer implemented method is provided. The computer implemented method includes launching a virtual machine monitor on a host device and for a peripheral device. The virtual machine monitor comprises one or more software components capable of performing actions including connecting a peripheral device to a host device, where the peripheral device memory includes peripheral device specific software and one or more available software bundles. The software components can launch the virtual machine monitor for the peripheral device and execute the peripheral device-specific software and an available software bundle on the host device. In one implementation, the computer implemented method includes connecting a peripheral device to a host device, where the peripheral device memory includes peripheral device-specific software that is executed on the host device.