Why is IFS Disrupting Enterprise Software Pricing Models?

IFS is altering how AI is purchased and deployed, which is changing procurement and supply chain roles around the world.

The implementation of AI has grown exponentially in recent years, but many companies have faced concerns about inconsistency and rising costs.

Now, however, IFS is working to tackle these concerns in order to make AI adoption more streamlined.

Changing markets

IFS is one of the world's leading providers of industrial AI across businesses, ensuring they can unlock value and transform their operations. It helps companies which maintain complex assets, manage service-focused operations and manufacture goofs, as they increase productivity, efficiency and sustainability across their workflow.

IFS.ai aims to be fully flexible and adaptable to customer requirements, utilising machine learning, real-time data and analytics in order to help business leaders make informed and strategic decisions.

Now, IFS is announcing a new pricing model for AI, changing how the technology is available and adopted. In recent years, the requirement for businesses to adapt and be flexible has become more apparent. With constant market turbulence and ongoing geopolitical volatility, business leaders are working to ensure resilience across their operations.

It is no longer enough for procurement leaders to ensure cost savings – now, they are vital in the sourcing of stable and resilient suppliers, playing a more visible role in business success than ever before. With this increase in demand for the roles, leaders have turned to AI in order to gain more detailed insights into supplier operations, but some are still failing to see the benefit of this tool.

As a result, some leaders are still reluctant when purchasing AI tools – concerned about rising costs of AI or limits to its capabilities. To combat this, IFS has announced its pricing model which enables organisations to deploy Industrial AI to wherever it creates value, without constraint or extra costs. 

“This is a clear message to our customers: rather than rationing users, IFS wants you using AI everywhere you can to create value," explains Mark Moffat, CEO, at IFS. 

"Our customers should not have to choose between automating their operations and controlling their software costs. This progressive move on pricing removes that trade-off entirely.

"We're not pricing the workers. We're pricing the work."

Greater accessibility

Traditional enterprise software pricing models price 'per user', but IFS is moving away from user-based licensing to a model which is more grounded in operational reality. As a result, customers can pay by assets, instead of by users. If a company has 12,00 people and machines, but only 400 assets, it is now paying for those assets, rather than paying the cost of the employees.

In doing this, IFS customers can be confident in their costs, knowing that they align with operations rather than facing uncertain costs. Due to this, they can expand their projects and grow their organisations without worrying about the added costs of user-based licensing. Instead of it being person-specific, the model aligns the software investment with the assets that are manufactured, managed and maintained – including vessels, components and infrastructure.

This makes AI more accessible, as it offers a more solid cost, rather than fluctuating with the number of staff.

“IFS moving into the next realm of pricing means buyers have flexibility in the Agentic world," explains Mickey North Rizza, Group Vice-President, Enterprise Software at IDC.

"IFS new pricing model helps companies operationally scale their investment to the value levers it needs to run the business. This new methodology will help clients sustain their economic value.”

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Doing more with less

Every business is having to adapt to the changing demand of the world, but they should not be limited to what they can afford. As pressures to do more with less increase, industrial organisations are facing a crossroads. They have the potential to expand what they are capable of producing, maintaining and delivering through Industrial AI, but the limits of cost have been impacting these businesses.

Through its pricing model, IFS is allowing workers to do more by directly driving work and outcomes. It is designed for industrial systems of action, helping drive greater value for customers. Through measurable, auditable and transparent metrics, IFS is working to help businesses meet their expansion goals without the added costs.

Aly Pinder Jr, Research VP, Aftermarket Services Strategies, at IDC, adds: “Asset-centric organisations have made the shift to expect to work with technology vendors that can align the partnership in a way for shared benefit and flexibility enabling growth as market conditions evolve.”

The evolution in pricing allows IFS to expand its own Industrial AI strategy, working to meet the changing demands of market needs. As customers navigate an increasingly AI-driven industrial landscape, IFS is aiming to help its customers capitalise on new opportunities.

Through its pricing model, IFS is working to help procurement leaders do more with less spend.