An electric machine system includes an alternating current (AC) electric machine. The AC electric machine includes a machine housing having a machine portion and a switch portion. A stator is fixedly mounted in the machine portion, a rotor rotatably mounted relative to the stator, and a plurality of switch members are arranged within the switch portion. The plurality of switch members are electrically connected to the stator. A direct current power source is electrically connected to the plurality of switch members. A controller is arranged within a controller housing and electrically connected to the plurality of switch members. The controller housing is distinct from and remotely mounted relative to the AC electric machine. The controller is configured and disposed to activate select ones of the plurality of switch member to convert DC current between the DC power source and an AC current to operate the AC electric machine.