Why IFS is Breaking with Industry Convention Pricing to Boost AI Adoption

Industrial software provider IFS has introduced a new pricing model designed to accelerate enterprise-wide adoption of industrial artificial intelligence by shifting away from traditional user-based licensing to an asset-based approach.

Breaking with traditional enterprise software pricing

The new model, announced at IFS Connect in Paris, allows organisations to deploy Industrial AI across operations without the cost constraints typically associated with per-user software licensing.

Under the approach, customers pay based on the operational assets they manage rather than the number of users accessing the system, enabling broader deployment of AI across industrial environments.

IFS says the move represents a fundamental shift from industry conventions that price enterprise software per user.

Instead, the company’s new model aligns pricing with the operational assets organisations manufacture, manage and maintain — such as vessels, infrastructure, components or production equipment.

For example, an energy company managing 400 offshore assets would pay based on those assets rather than the 12,000 people and machines accessing associated data.

The company says this structure enables organisations to scale projects without the limitations commonly associated with user-based licensing models.

Aligning software investment with operational outcomes

Mark Moffat, CEO at IFS, said the new model is intended to encourage companies to deploy AI wherever it creates operational value.

“This is a clear message to our customers: rather than rationing users, IFS wants you using AI everywhere you can to create value. 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.”

Enabling enterprise-wide industrial AI adoption

IFS said the pricing shift is designed to support broader adoption of Industrial AI across complex industrial environments.

By linking software investment to operational systems rather than workforce size, companies can expand AI deployment across functions without concerns about escalating licensing costs.

The approach is designed for industrial systems of action, where software investment aligns with operational environments instead of the number of employees, contractors or automated systems accessing the platform.

According to IFS, this framework provides measurable, auditable and transparent metrics that ensure organisations pay for the operational value supported by the system.

Supporting growing demand for industrial AI

IFS says the change reflects growing demand for AI capabilities across industrial sectors including manufacturing, energy and asset-intensive industries.

Industrial organisations are approaching a period of significant expansion in what they can produce, maintain and deliver using AI-driven technologies.

The company said its pricing strategy is intended to ensure AI adoption is not restricted by traditional enterprise software licensing models.

Industry analysts weigh in on pricing shift

Industry analysts say the approach reflects evolving expectations around enterprise software purchasing models.

Mickey North Rizza, Group Vice-President, Enterprise Software at IDC, said the change introduces greater flexibility for organisations adopting emerging AI technologies.

“IFS moving into the next realm of pricing means buyers have flexibility in the Agentic world. 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.”

Aly Pinder Jr, Research VP, Aftermarket Services Strategies at IDC, added that the model reflects changing expectations among asset-centric organisations.

“Asset-centric organizations 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.”

IFS strategy for the industrial AI era

IFS said the new pricing model forms part of its broader Industrial AI strategy aimed at supporting organisations operating complex assets and service-focused operations.

The company said the approach is designed to help organisations navigate an increasingly AI-driven industrial landscape while enabling them to scale technology adoption in line with operational growth.

IFS provides AI-powered enterprise software used by businesses that manufacture products, maintain complex assets and manage service-based operations across industries.