IFS is an Enterprise Resource Planning (ERP) software with a large global customer base. Previously, customers purchased perpetual licenses and paid an annual maintenance fee for support and updates. However, IFS has shifted its licensing model to exclusively offer subscription-based licenses, requiring yearly payments. This change affects both new customers and existing ones who wish to upgrade to the latest product, IFS Cloud. This transformation has been pushed by the fact that the old product (IFS Applications 10) is being retired in 2027.

The new subscription model brings higher costs and additional risks for customers. Subscriptions are usually more expensive than previous licensing agreements, and the contracts are more complex (e.g. often include hosting services). Companies must pay close attention to the contractual details, particularly regarding usage rights and any additional future costs embedded in the new agreements.

For existing customers, this means they must move away from the old licensing model when upgrading to IFS Cloud. The need to sign new agreements introduces financial uncertainties, as future price changes by IFS are difficult to predict as well as pages of new contractual clauses. The transition to the subscription model requires careful planning and negotiation to avoid potential pitfalls.

2BCS AG, a leading Swiss consulting company, has been assisting IFS customers in negotiating these new agreements. 2BCS provides both legal and commercial support to ensure that clients secure fair and favorable contract terms. This helps businesses optimize their costs and better manage the risks associated with the new licensing model.