Industrial software providers are entering a new phase of transformation as cloud modernisation, recurring revenue models, and pragmatic AI adoption reshape the enterprise technology landscape for manufacturers. For mid-market industrial businesses in particular, the focus is shifting toward operational resilience, predictable upgrades, and systems capable of supporting more data-driven decision-making across the organisation.
Forterro has been actively positioning itself at the centre of this shift. The company closed 2025 with strong momentum, driven by accelerating cloud adoption across its portfolio and an increasing share of recurring revenue. At the same time, Forterro continues to expand its capabilities through targeted acquisitions while integrating practical AI functionality into solutions designed specifically for industrial environments.
In this Q&A with ERP News, Dean Forbes CEO, Forterro discusses the strategic drivers behind Forterro’s growth, how cloud transformation is reshaping customer relationships, and why industrial manufacturers are prioritising stronger data foundations and automation. He also shares his perspective on the role of pragmatic AI in manufacturing operations and the technology priorities that will shape the industrial ERP landscape over the next several years.
Cloud, Recurring Revenue, and the Redefinition of Industrial ERP Value
Q: Forterro closed 2025 with strong momentum, driven by cloud adoption and AI‑led investment. What do you see as the biggest strategic shift behind this growth?
A: The biggest shift has been a meaningful move to the cloud. We made a clear decision to modernise our products, simplify our architecture and give customers a reliable, future‑ready path forward. This created a level of confidence that unlocked adoption and repeat business. Once customers saw the stability, predictability and operational advantage that cloud provides, the momentum accelerated. The organisation rallied behind this focus and that alignment has been a major driver of our performance.
Q: Many industrial manufacturers are still cautious about IT spend. Why do you think Forterro customers are accelerating cloud adoption despite broader market hesitation?
A: Our customers are accelerating because they know their businesses depend on systems that are resilient and ready for the future. They trust us to power their day‑to‑day operations and that trust grows when they see that cloud gives them more stability, more visibility and a smoother upgrade path.
A big reason for this confidence is the work our teams do behind the scenes. We take on the heavy lifting of cloud migration so customers feel minimum disruption or downtime. That practical support removes the fear that often slows investment decisions. Once customers see that modernising with Forterro strengthens their ability to run, respond and grow, the hesitation disappears.
Q: Forterro now generates 74 % of its revenue from recurring sources. How does this change the way you engage with customers and deliver long‑term value?
A: A recurring model keeps us focused on delivering value every month. It pushes us to listen more closely, support adoption and stay accountable for real outcomes rather than one‑off projects. It builds stronger partnerships because our success is tied directly to customer success.
Recurring revenue also gives us the stability and assurance to invest in further development and innovation so we can continue to power our customers’ businesses in the long term and through changing expectations and market dynamics. It is a compliment to the organisation because it shows customers are choosing an ongoing relationship with us. That level of commitment tells us we are creating value they trust and want to build on.
From AI Hype to Operational Impact: A Pragmatic Approach to Industrial Innovation
Q: AI is becoming central to Forterro’s strategy. Where are customers seeing the most immediate and practical impact from AI today?
A: There is a lot of noise and hype around AI, and what we’re hearing from our industrial customers is that they don’t have time to develop their own ai strategy or solution. They are focused on powering Europe in their sectors and keeping their operations running day in, day out. Our job at Forterro is to cut through that noise and offer AI where it genuinely matters.
Customers are seeing real impact where AI reduces friction, speeds up decisions and helps teams stay ahead of issues before they become problems. The value comes from practical improvements in planning, automation and accuracy. This is AI that supports the people doing the hard work in manufacturing, not AI for the sake of headlines.
Q: How does Forterro balance innovation with the very specific operational needs of industrial mid‑market customers?
A: The power and value Forterro brings comes from central innovation and focus that all of our customers benefit from. Centrally, Forterro provides security, data consistency and modern capability. Our products maintain the specialist workflows that sit at the heart of industrial operations. This approach means customers never have to choose between innovation and consistency. They get the confidence of modern technology and the precision of industry-ready solutions in one place.”
Q: Acquisitions have played a key role in Forterro’s evolution. How do you ensure new capabilities around AI, analytics and vertical expertise are integrated without disrupting customers?
A: We build the Forterro group by investing in industry‑leading businesses across Europe, and we are a well‑oiled machine in that department. Forterro has a specialist team who sources, validates and integrates these brilliant companies. The people in these teams often come from customer and product roles within the group, which means the depth of experience behind our investment decisions is perfectly aligned to the forward strategy. Throughout the entire investment lifecycle, our experts who work directly with customers validate that the business is the right fit for the group.
Our approach is simple. We acquire to enhance our customers’ access to innovation, capability and expertise. We do not acquire to create disruption. Our teams are never distracted by acquisitions. We are powered by them, and we deliver the benefits straight back to our loyal customers.
Q: Net revenue retention of 114 % suggests strong expansion within the installed base. What does this tell you about customer confidence and usage patterns?
A: It tells us that customers are leaning further in. They are adding modules, adopting cloud services and using the system in more functions across their businesses. It is a clear signal of trust. Customers only expand with partners who help them perform better and who show up consistently. This level of NRR shows that we are becoming more important to their operations year after year.
Q: Looking ahead, what do you expect to be the biggest technology priorities for industrial businesses over the next two to three years?
A: The priorities will centre on resilience and competitiveness. Making that possible is quality, actionable and secured data. Industrial businesses will need stronger data foundations so they can automate more work, predict issues earlier and make faster, more confident decisions. They know that better data flows through every part of the operation, from planning and inventory to customer service and finance.
Agentic capability will also rise quickly. Our customers want technology that can act on insights, take on routine tasks and support teams without creating extra risk or complexity. Combined with cloud modernisation, these shifts will help companies build more adaptable and efficient operations.
To achieve all of this, businesses will need a trusted partner. Someone who understands industrial environments, brings clarity to the noise and can guide them through modernisation without disruption. The companies that choose the right partner early will move faster and compete harder as the market continues to evolve.
Q: For manufacturers considering their next ERP or cloud move, what advice would you offer to ensure they future‑proof their operations?
A: Start with outcomes. Be clear about the performance improvements you expect and make decisions that align to those goals. Choose a platform with strong data foundations, flexibility, AI capability and a proven upgrade path. Surround yourself with partners who understand industrial operations and will stay with you through the journey. Future‑proofing comes from building a system that can adapt as your business evolves.
ERP News Editorial Team
The ERPNews Editorial Team covers global developments in ERP (Enterprise Resource Planning), enterprise software, cloud platforms, AI, automation, and digital transformation, providing independent news and editorial analysis for senior business and technology leaders. Our reporting focuses on market signals, strategic shifts, and enterprise impact across the ERP and enterprise technology ecosystem.
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