A system and method provides automated creation of device resident services. A host computer includes an advertisement listener that receives device service advertisements. One or more service generator processes receive information about the advertised device services and create hosted services acting as proxies for the device services. One or more peripheral devices are linked to the host computer, with each device including a device service. The device advertises the device service to the host computer and provides a device service description describing capabilities of the device and device service to the service generator. A directory service maintains service entries for the hosted services published by the service generators. Clients may search for and select a required service in the directory service table, and the service entries serve as links to the corresponding hosted services which may then be used by the client. A selected hosted service may enhance the corresponding device service and provide augmented services to the client.