IFS Asset-Based Pricing Upends Enterprise Software Costs

Global software provider IFS is pioneering a fundamental shift in how industrial enterprises procure and deploy AI, moving from traditional user-based licensing to an asset-centric model that could reshape technology investment strategies across manufacturing, supply chain and service operations.

A Swedish enterprise software company is challenging decades-old pricing conventions in the technology sector with a new commercial model that ties AI deployment costs to physical assets rather than user headcount.

This approach could signal a broader transformation in how industrial organisations invest in and scale their digital infrastructure.

IFS has introduced a pricing framework that enables companies to pay based on the number of assets they operate – such as vessels, components and infrastructure – rather than the number of employees accessing the software.

For an organisation managing 400 assets but employing 12,000 people and machines, this represents a substantial shift in how technology investments are structured and scaled.

The announcement comes as enterprises grapple with the economic realities of AI adoption.

While implementation of AI has grown exponentially in recent years, concerns about cost unpredictability and licensing constraints have created barriers to widespread deployment across industrial operations.

Rethinking Software Licensing Models

Traditional enterprise software pricing has long operated on a per-user basis, a model that emerged during the early days of business software when applications were primarily productivity tools for individual workers.

IFS is moving away from this framework to one that aligns more closely with industrial operational realities.

“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.”

The technology provider positions its IFS.ai platform as fully flexible and adaptable to customer requirements, utilising machine learning, real-time data and analytics to support strategic decision-making.

By decoupling software costs from workforce size, IFS customers can deploy AI capabilities across their operations without triggering escalating licensing fees as more employees gain access to the technology.

This could prove particularly significant for organisations looking to implement agentic AI systems – autonomous software agents that can perform tasks and make decisions independently.

“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.”

Industrial AI Deployment Economics

The pricing innovation addresses a growing tension in industrial technology adoption.

As market turbulence and geopolitical volatility increase pressure on operational resilience, business leaders are turning to AI for deeper insights into supplier operations, predictive maintenance capabilities and workflow optimisation.

However, uncertainty about total cost of ownership has created hesitation around broader AI deployment.

By establishing predictable costs tied to asset counts rather than fluctuating workforce numbers, IFS is offering a more stable financial model for technology investment.

Organisations can expand AI usage across procurement teams, supply chain operations and maintenance functions without recalculating licensing costs as access requirements change.

“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,” adds Aly Pinder Jr, Research VP, Aftermarket Services Strategies at IDC.

The approach reflects a broader trend in enterprise software towards consumption-based and outcome-oriented pricing models.

As industrial AI becomes more embedded in operational workflows– automating processes, analysing real-time data streams and driving autonomous decision-making – traditional seat-based licensing becomes increasingly misaligned with how the technology actually creates value.

Technology Adoption Without Constraints

For industrial organisations, the implications extend beyond simple cost management.

The pricing model could accelerate AI adoption by removing economic barriers to deployment across manufacturing facilities, service operations and asset management functions.

Companies maintaining complex assets can now implement AI-driven predictive maintenance, quality control and operational optimisation without the constraint of per-user costs limiting which employees can access these capabilities.

IFS positions the model as particularly suited to industrial systems of action – environments where AI does not simply provide insights but actively drives work and outcomes through measurable, auditable and transparent metrics.

This aligns with the evolving role of enterprise software in industrial settings, where technology is increasingly expected to deliver tangible operational improvements rather than serving primarily as an information management tool.

The shift comes as procurement and supply chain leaders face heightened expectations.

It is no longer sufficient to deliver cost savings – these roles now carry responsibility for sourcing resilient suppliers and ensuring operational continuity amid ongoing disruption.

AI tools offer capabilities to meet these expanded requirements, but only if deployment is not artificially constrained by licensing economics.

As enterprises navigate an increasingly AI-driven industrial landscape, pricing models that enable rather than restrict technology deployment could become a competitive differentiator for software providers targeting the industrial sector.