With a look at IFS Logistics and How IFS is leading towards outcome-based pricing 

There is a lot of focus at the moment on outcomes. And by association, pricing for outcomes. The good news is we’re getting closer to where we can more easily achieve outcome-based pricing for industrial enterprise. 

The first step is making our offering simpler and future costs more predictable. At IFS that’s our Industrial Value Pricing proposition, and a quick spoiler alert here: it’s not the star of the show. Even so, we’re disrupting enterprise software pricing models that traditionally price “per user” and anchoring to our customers’ operational reality, and their specific business metrics. 

The reason that we want to simplify the first step, is that we want to give focus to the second step. The second step is all around the outcomes our customers are driving in their business, underpinned by AI tools. 

Where those AI tools are driving discrete outcomes (for example, generating a Supplier Order), then outcome-based pricing becomes easier. More generic outcomes (for example, using LLM to retrieve some research) drive more generic metrics (for example, tokens or credits)1

Here’s where it gets business critical:  

Since February 28, 202622  in the Strait of Hormuz, we’ve seen: 

  • 97% reduction in transits.  
  • Over 1,550 vessels stranded at peak.  
  • Freight rates surged multiple times pre-crisis levels.  
  • Brent crude exceeded $140/barrel, the highest since 2008.  
  • 44,000+ businesses across 174 economies directly exposed. 

In the context of macro logistics disruption, the outcome our industrial customers are asking us to deliver is visibility and cost optimization. The other question they are asking is the “what if” of scenario planning. 

Helping them to thrive even with a backdrop of macro uncertainty is where our mission is taking us in the world of Industrial AI.


  1. The broader an AI agent’s job, the more granular the pricing unit becomes. ↩︎
  2. Satellite radar and AIS reveal a 97% decline in shipping traffic through the Strait of Hormuz – ScienceDirect ↩︎