IFS and NEC Accelerate Digital Transformation
IFS and NEC Accelerate Digital Transformation of Core Industries with Domestically Managed Cloud Services and Industrial AI for the Japanese Market, Addressing Economic Security
"Driving Service Expansion into Capital-Intensive Industries with Manufacturing-Focused Practical Models in FY2026"
Tokyo, January 16, 2026 - IFS AB (IFS) and NEC Corporation (NEC; TSE: 6701) have launched a joint initiative to deploy IFS’s cloud service for the Japanese market, and to advance the development of industrial AI. This initiative aims to address the challenges facing Japan’s core industries and to accelerate the modernization of mission-critical systems that form the foundation of AI-driven digital transformation (DX). Specifically, the two companies will build a cloud infrastructure for IFS Cloud (*1) in domestic data centers. This infrastructure will be designed to meet Japan’s economic security requirements and expand the companies’ managed services offering “IFS Cloud Kaname” (*2), which is tailored for the Japanese market. Moreover, the companies will jointly develop industrial AI services.
Through this strategic collaboration and the new services it delivers, IFS and NEC will support customers in Japan’s capital-intensive industries—including manufacturing, aerospace and defense, energy, transportation, and public infrastructure—in modernizing their core business operations such as supply chain management, enterprise asset management, and field service management, thereby accelerating DX. In addition, the initiative will contribute to the realization of “servitization,” enabling customers to combine products and services to create new sources of revenue.
This initiative is made possible by combining IFS’s extensive global track record in ERP implementations with NEC’s deep expertise and technological capabilities, built through their more than 30-year partnership (*3), during which NEC has deployed IFS solutions for over 200 companies.
Both companies plan to begin offering these services within the 2026 fiscal year.
Background
As digital transformation expands into mission-critical areas, including core enterprise systems, ensuring security has become an urgent priority. Capital-intensive industries require high levels of safety and availability to prevent disruptions to production and distribution. Therefore, cloud adoption for core systems must operate entirely within Japan to comply with data governance and economic security requirements. This collaboration combines IFS’s proven capabilities with NEC’s expertise to provide a secure and reliable cloud environment, enabling the modernization and digital transformation of core systems in industries where Japan has strong capabilities.
Overview of Initiatives
1. Deployment of a Japan-based Cloud Infrastructure for Economic Security and Managed Services “IFS Cloud Kamane”
IFS and NEC will build and deliver a cloud infrastructure optimized for the Japanese market, together with managed services. This service aims to establish an environment where data is stored, processed, and backed up within Japan, enabling management in accordance with Japanese laws and compliance frameworks to address economic security and data governance in Japan. This approach allows partners and customers to leverage managed IFS Cloud services tailored for the Japanese market without concerns over security or data governance, enabling them to accelerate innovation and digital transformation on this platform. The service is planned to be built on the Microsoft Azure platform.
2. Advancing IFS Cloud Services through Co-Creation and Validation under the “Client Zero” Approach
As part of the joint development of IFS Cloud Kaname, a cloud service designed specifically for the Japanese market, NEC will act as a “Client Zero,” progressively developing and validating the solution within its own organization and group companies. NEC will verify implementation benefits and utilization potential in areas such as supply chain management, shop-floor digital transformation, and asset investment planning. At the same time, NEC will organize the “real-world insights” it has gained on-site as proprietary assets and offer them as a package with IFS Cloud's standard functionality. Based on these results and accumulated know-how, the solution will be structured as a framework representing the “shortest path to success,” enabling customers to modernize their core systems in a safe and reliable manner.
NEC plans to offer the IFS solution as part of its NEC BluStellar Scenario (*4).
3. Joint Development and Expansion of AI Services
IFS and NEC will jointly develop and expand industrial AI services by combining IFS’s AI offerings—IFS.ai and the AI agent platform IFS Loops (*Note 5)—with NEC’s advanced AI technologies and will deploy these services both in Japan and globally.
In particular, NEC’s automated negotiation AI will be applied to areas within supply chain operations—such as delivery schedules and quantity negotiations—which have traditionally relied on the experience and intuition of skilled professionals and were considered difficult to automate. These new AI services will accelerate digital transformation not only within internal business processes but also across global, inter-company supply chains, enabling innovation through human–AI collaboration.
Endorsement from Rodrigo Kede Lima, President, Microsoft Asia:
“We welcome the next chapter in the long-standing relationship between IFS and NEC, an important collaboration poised to help shape the future of Japan’s industrial sector. By bringing together IFS’s leadership in industrial software and NEC’s advanced AI capabilities, built on Microsoft Azure, this alliance underscores the power of trusted Microsoft partners working together to drive secure, scalable, and innovative digital transformation. We are proud to support this collaboration and look forward to contributing to the sustainable growth and success of customers in Japan and across global markets."
Endorsement from Viktoria Li, Ambassador, Swedish Embassy in Japan
“The Embassy of Sweden in Japan congratulates IFS, a company with proud Swedish heritage, on its impressive growth in Industrial AI and its recent strategic expansion with NEC. Sweden and Japan share a long and prosperous history as partners in Science, Technology, and Innovation and represent two of the most knowledge-intensive economies in the world. This initiative is a strong testament to that shared vision.
“Together, IFS and NEC will advance secure, Japan-specific cloud solutions and co-create industrial AI services, accelerating digital transformation across internal operations and global supply chains while fostering innovation through human-AI collaboration.
“This forward-thinking partnership reflects a shared commitment to sustainable growth and social value creation. The Embassy looks forward to supporting continued success in this important endeavor.”
Comment from Mark Moffat, CEO, IFS
“We are delighted to deepen our long-standing partnership with NEC as we enter the next phase of our collaboration. Together, we are bringing Industrial AI Applied to life—AI that is fully embedded in industrial operations and delivers real, measurable business impact.
“By combining NEC’s extensive industry expertise with IFS.ai, our applied industrial AI that transforms operational data into actionable insights, and IFS Cloud Kaname, our secure and reliable cloud infrastructure service designed for Japan, we enable customers to apply industrial AI safely, reliably, and at scale in mission-critical environments.
“NEC’s role as our ‘Client Zero’ demonstrates a shared commitment to validating innovation in real operational settings. Their leadership in scaling industrial AI on a secure and domestically managed cloud is accelerating value creation and setting new benchmarks for the market.
“Together with NEC, we are strengthening resilience, enhancing competitiveness, and supporting sustainable growth for organizations in Japan and globally, turning innovation into action and action into measurable results.”
Comment from Takayuki Morita, President and CEO, NEC Corporation
“Building on our 30-year partnership with IFS, we are proud to move into the stage of delivering real services originating in Japan, aimed at breaking through what has been the greatest barrier to digital transformation for Japan’s core industries: the modernization of core systems.
“In this initiative, NEC itself will take the lead as ‘Client Zero’ in manufacturing, translating on-the-ground insights directly into customer value. The creation of a secure, Japan-specific cloud infrastructure, the co-creation of industrial AI, and the realization of digital transformation across global supply chains represent a highly meaningful challenge for NEC as a company committed to creating social value.
“We are excited to connect the expertise cultivated in manufacturing operations to the strengthening of social infrastructure—the backbone of Japan—and, together with IFS, to bring together our most advanced technologies to create new value that will lead not only Japan’s industries, but industries worldwide. NEC will continue to take on these challenges alongside IFS to deliver secure, trustworthy technology and contribute to a sustainable society.”
About IFS
IFS is the world's leading provider of industrial AI and enterprise software for manufacturing, service, and hard-core businesses that power the planet. Our technology enables companies that manufacture goods, maintain complex assets, and manage service-centric operations to unleash the transformative power of Industrial AI™ to improve productivity, efficiency, and sustainability.
IFS Cloud is a fully configurable, AI-powered platform designed to deliver ultimate flexibility and adaptability to your specific requirements and business evolution. Addressing the needs of Enterprise Resource Planning (ERP), Enterprise Asset Management (EAM), Supply Chain Management (SCM), Information Technology Service Management (ITSM), and Field Service Management (FSM), IFS' technology leverages AI, machine learning, real-time data, and analytics to help customers make informed strategic decisions. IFS technology leverages AI, machine learning, real-time data, and analytics to help customers make informed strategic decisions and achieve Moments of Service™.
IFS was founded in 1983 by five college friends who pitched a tent outside the property of their first customer. They were available 24/7 and put their customers' needs first. Since then, IFS has grown into a global leader with more than 7,000 employees in 80 countries. Built on the core values of agility, customer centricity, and trust, IFS is recognized worldwide for delivering value and supporting strategic change. We are the most recommended supplier in our field.
About NEC
The NEC Group leverages technology to create social value and promote a more sustainable world where everyone has the chance to reach their full potential. NEC Corporation was established in 1899. Today, the NEC Group’s approximately 110,000 employees utilize world-leading AI, security, and communications technologies to solve the most pressing needs of customers and society.
For more information, please visit https://www.nec.com, and follow us on LinkedIn and YouTube.
(*1) IFS Cloud
https://www.ifs.com/ifs-cloud/ifs-cloud-overview
https://www.nec.com/en/global/solutions/ifs/index.html
(*2) Built on the concept of Kaname—a strong, trusted foundation—this offering delivers a Japan-based, Japan-governed cloud platform designed specifically for enterprises and public-sector organizations that require the benefits of cloud innovation without compromising national,
regulatory, or operational independence.
(*3) Press release | IFS and NEC Strengthen their Strategic Partnership to Create New Value (May 30, 2025)
https://www.nec.com/en/press/202505/global_20250530_02.html
(*4) “NEC BluStellar" is a value creation model that leads customers into a brighter future by realizing business model innovation and solving social issues and customer management issues. This is accomplished through advanced cross-industry knowledge backed by proven results and NEC's cutting-edge technology honed through years of development and operation.
https://www.nec.com/en/global/necblustellar/index.html
(*5) IFS Loops
https://www.ifs.com/en/news/product/ifs-loops