Dive Brief:
- IFS is targeting more than $335 million (300 million euros) in partner-led annual recurring revenue over the next two to three years as part of a channel growth strategy outlined at IFS Unleashed in Orlando on Tuesday. The enterprise software vendor also unveiled plans for an AI marketplace and a new delivery methodology to help partners develop and deploy industry-specific solutions.
- IFS is giving partners ownership of net-new customer opportunities involving businesses with annual revenue below $200 million. The company wants partners to generate 15% of its revenue as it expands its channel business. IFS reported 25% annual recurring revenue growth in the first half of 2026, bringing ARR to approximately $1.28 billion.
- “You source it, you own it, you sell it,” IFS Global Head of Channel Sales Nick Dent told partners at the conference. Partners that originate larger deals may also be permitted to resell, depending on their capabilities, he added.
Dive Insight:
IFS is betting on its channel to drive more of its growth as the industrial software vendor expands its customer base and AI portfolio. The $336 million target is based on projected annual growth of 20%.
Dent said the opportunity extends beyond software sales, with partners potentially generating two to three times the recurring revenue opportunity through associated services.
A partner capturing just 1% of the projected opportunity would generate at least $3.36 million in ARR, he said.
IFS is also giving partners greater control over the sales process. While partners already own net-new opportunities involving businesses with annual turnover below $200 million, the company is extending resale opportunities to larger accounts where partners have the necessary capabilities.
The vendor is introducing updated partner business plans for 2027 and dedicated channel sales managers to help partners close deals.
IFS Chief Revenue Officer André Robberts said partners recently participated in 75 net-new customer wins. Partner certifications increased 103% year over year to 17,000, while the number of certified individuals rose 48% to 5,000, he added.
The company is looking to create new revenue streams for partners through IFS Intelligence, a newly launched industrial AI platform.
Partners will be able to develop and monetize AI skills, workflows, automations and data views, known as lenses, using their industry expertise. IFS plans to introduce a marketplace where partners can commercialize what they build.
IFS gave partners free access to the platform through December and has committed to making its broader AI portfolio available for resale and deployment.
The vendor also introduced Value-First, an AI-enabled delivery methodology designed to reduce implementation times and project costs. The approach includes automated project reporting, risk identification and tools to generate workflows and business requirements.
The changes are intended to help partners deliver more customer projects while building additional services revenue around AI adoption and ongoing optimization.
