Plant-Wide Research Group - April 19, 2004 - IFS Becoming True Global Company, Watch For More Tier One Business From IFS

IFS customers are certainly very happy with the IFS Application products. At the recent IFS Conference, Plant-Wide found a great deal of support for IFS and high interest in the launch of IFS Applications 2004. Announced in December, the new version is a significant upgrade, but the depth of the new version did not really become apparent until reviewed in detail at the conference. The thing that impressed us even more is the significant investment IFS has made in its global infrastructure, including IFS America. It became more apparent that improvements made to Applications 2004 are designed to increase IFS’ ability to provide its global customers with a solid, cost-effective, suite of global services. Pursuing that new direction, Plant-Wide sought out and spent some quality time with three global customers, which was an easy proposition, since IFS has signed several major contracts worldwide during the fall of 2003. IFS now has slightly less than 3000 employees and a truly global footprint including China. IFS sales are now being made in 45 countries and the ISV has more than 350,000 users worldwide. A change in market focus is going to bring IFS results, especially with the larger mid-sized U.S. companies because they need global support, these days. For example, IFS signed a global contract with Swiss-based Franke, and it was one of its biggest ever. The collaboration with between IFS and Lockheed Martin (maintenance of the F-16 fighter) is one of several deals that reaffirm our suggestion that large-scale sales are in IFS Applications 2004’s future. Add the fact that NEC just invested in IFS to enhance its software and services business in Asia validates our belief that IFS can handle ERP implementations globally. In a talk with President and CEO, Michael Hallén at the Conference, he said, “I think we have seen, during the year, that our decision to target global customers in selected segments was right. We will continue along the path we have followed during 2003.” “ … we are aiming to achieve a leading position in our focused industries, since we see a great potential there. Moreover, we have an excellent product and a high level of competence. We will also continue to work to convince customers with global operations of the benefits of IFS as an international partner.”