Microsoft introduces contractor pricing for Dynamics 365 Field Service
Earlier this year, Microsoft introduced a new contractor pricing model for Dynamics 365 Field Service. This update is designed for businesses that rely on third-party contractors or frontline non-employees, offering a flexible, usage-based licensing option. The change addresses challenges faced by organizations that need to grant access to contractors without incurring the costs of a full user license.
Here’s an overview of what Dynamics 365 Field Service is, how its pricing traditionally works, and what this new model means for businesses.
What is Dynamics 365 Field Service?
Dynamics 365 Field Service is a comprehensive cloud-based solution that helps organizations manage and optimize their onsite service operations. Designed for industries like maintenance, repair, and installation, it empowers field-based teams with connected tools for scheduling, communication, and problem resolution. Leveraging IoT technology, AI, and mixed reality, it offers a proactive approach to service management, enabling businesses to predict and address issues before they arise, streamline resource allocation, and enhance customer satisfaction.
Key features of Dynamics 365 Field Service include work order management, proactive issue detection using Azure IoT sensors, and remote assistance via mixed reality for technicians. The solution also offers AI-driven scheduling and dispatching to optimize technician routes, mobile access for field teams to stay connected, IoT integration for proactive maintenance, and resource optimization through visual maps for efficient scheduling.
Old licensing options for Dynamics 365 Field Service
Under the previous licensing structure, Dynamics 365 Field Service required businesses to pay for a full user license—priced at $105 per user per month—for any user needing access to the platform’s comprehensive capabilities. While this option worked well for core employees such as service managers, dispatchers, and field technicians, it became cost-prohibitive for businesses needing temporary or occasional access for non-employees or third-party contractors.
While the Team Member license, priced at $8 per user per month, provided a lower-cost alternative, its limited functionality made it unsuitable for users needing advanced features. This option was designed for lighter tasks like logging time or viewing reports and could not meet the needs of third-party technicians performing more complex work. Additionally, the Device license, priced at $160 per device per month, allowed multiple users to share a single licensed device, such as a warehouse terminal or shop floor system. However, this option was not practical for scenarios where individual access to Dynamics 365 Field Service was required, particularly for technicians working independently.
Introducing contractor pricing for Dynamics 365 Field Service
Microsoft introduced a new licensing option: Dynamics 365 Field Service Contractor. Designed to support organizations that rely on third-party technicians or contractors, this license offers a streamlined and cost-effective solution for granting non-employees access to essential tools. The Dynamics 365 Field Service Contractor license provides key functionalities such as work order management and mobile access, empowering contractors to perform their tasks efficiently.
This licensing option is particularly beneficial for companies seeking to scale their field service operations while managing costs. Unlike the standard full user license, which includes comprehensive features, the contractor license focuses on core capabilities needed by external technicians. At a reduced price point of $50 per user per month, this option allows organizations to enhance service delivery to end-customer locations without incurring the cost of unnecessary features.
To use the contractor license, organizations must already have a Dynamics 365 Field Service license, such as a Full User or Device license, and meet certain prerequisites, including Microsoft Entra ID and Azure AD guest account assignments. These requirements ensure seamless integration and access for contractors while maintaining the security and efficiency of the overall system.
Next steps
The new Dynamics 365 Field Service Contractor license offers a valuable option for businesses that rely on third-party technicians or contractors. This cost-effective solution grants essential tools to contractors at a fraction of the cost of a full user license. By providing a streamlined set of features, the contractor license allows businesses to scale their operations without paying for unnecessary functionalities.
Microsoft’s partner network plays a vital role in the implementation and support of Dynamics 365 Field Service. Microsoft Dynamics 365 Implementation partners help businesses navigate the different licensing options and ensure they are equipped with the right tools for their needs. Organizations interested in learning more about Dynamics 365 Field Service or obtaining assistance with licensing and implementation are encouraged to connect with a certified Microsoft partner.
