Understanding Power Platform Licensing: Part 1 – Power Apps (2023)

  • Part 1 – Understanding Power Apps Licensing
  • Part 2 – Power Automate (coming soon)
  • Part 3 – Power Virtual Agents (coming soon)
  • Part 4 – Portals (coming soon)

Understanding Power Apps Licensing

Understanding Power Platform licensing is a dark art for some, but in reality its fairly straightforward.

The complexity is more often than not choosing the right components that make up your solution; do you go Model Driven? Canvas Driven? Teams + Power Apps? What will the database look like – SharePoint, Dataverse or SQL?

There are lots of permutations, and whilst licencing is a factor to consider, don’t let it influence your decision on how the solution should be technically delivered – if you need a relational database don’t try and fit this into a SharePoint list!

Within ‘Power Apps‘, there are three primary licencing models you can choose from (there are of course ‘add-on’ licencing), but for the purpose of this post, we’ll focus on the three core models:

  • Seeded, Per App, Per User.
Seeded planPer app planPer user plan
Run unlimited canvas apps per user, using only Standard Connectors
Run one app per user, with the ability to use Premium Connectors
Run unlimited apps per user, with the ability to use Premium Connectors
£0
Included within O365 licence or D365
£7.50
Per user/app/month
£30.20
Per user/month
Seeded licencing from within an Office 365 or D365 licence. Can run unlimited number of Canvas Apps or Teams + Power Apps. Best for businesses that want to license each user to run one app at a time, with the flexibility to stack licenses for each additional app.Best for businesses that want one license for each user, regardless of the number of apps they need to run.
(Video) Free Certification + Power Platform Licensing Explained

To help illustrate the type of Power App to use, hopefully the following diagram provides an overview on when you’ll need to look at using Premium licencing over the standard licence (seeded).

Understanding Power Platform Licensing: Part 1 – Power Apps (1)

Note: I’m assuming the reader knows the difference between Model Driven and Canvas apps, and also has a basic understanding of key differences between Standard vs. Premium connectors.

Considerations

Consideration 1 – Data

What type of data will you be storing?

When deciding your Power App solution and you’re deciding which approach to choose, keep in mind the Data. A key consideration that any Microsoft Consultant will tell you, including Microsofts’ very own Power Platform licencing guru Chris Huntingford – “What type of data are you storing”

  • What is the Data?
  • How critical is this Data?
  • Is it relational?
  • How much data will we need to store?

The answer will narrow your options:

  • Relational data will need to reside in relational database such as Dataverse or SQL. These are both Premium connectors (unless of course you use Teams + Power Apps – Dataverse for Teams)
  • If you need a relational database and the data is less than 2GB, then you could use Teams + Power Apps (Dataverse for Teams), which is covered under the ‘Seeded’ licencing option.
  • If your data isn’t business critical and you’re not storing relational information you could use a SharePoint List – which is covered under the seeded licence.

Remember, a SharePoint List can store 30 million items!

More commonly, organisations that I work with are not using Dynamics 365, and are coming from a Modern Workplace using O365 licencing; they are consumers of the ‘Seeded’ option and in most cases use Canvas Apps with a SharePoint data store. Personally I love SharePoint – and in most cases a SharePoint List is perfectly fine – but go back to the first question – how important is your data.

Consideration 2 – Consumers

Who will be consuming your Power App?

(Video) Licensing?? | The Power Platform on Office 365

All consumers (internal or external users – yes, you can share a Canvas App with an external user!) will need to have the appropriate licencing to ‘consume’ the Power App.

If your organisation has a mixture of Seeded and Premium licencing you’ll have another consideration to keep in mind. Understand who will be consuming your Power App – little point in creating a corporate wide Model Driven application for only a subset of the organisation to be licensed to use it – you’ll find yourself re-writing the application.

Consideration 3 – Business Criticality

How critical is your App?

The Seeded licence is included as part of Office 365. Just like Microsoft Work and Excel, Power Apps and Power Automate compliment the suite of ‘Personal Productivity’ applications.

Alot of folks complain that they are trying to build business critical applications under the seeded licence and their constrained to what they can and cannot do without the more expensive licence.

If you’re developing a business critical application, then the chances are it’ll need a Dataverse or SQL database backend – and you’ll be needing to use Premium licencing. BUT in addition to the licencing requriements, if you are creating a business critical application then you should also be thinking about ‘Application Lifecycle Management’.

For me, its simple, there are two types of apps that you’ll be creating and each follows a different path:

  • Personal Productivity – minimal IT oversight and involvement.
  • Company-wide / business critical – IT oversight, and probably developed under formal project management.

For critical applications a full Application Lifecycle Management route is required, with dedicated Development, Test and Production environments. Additionally deployment of the Power App would be managed using Solutions, compared with Personal Productivity apps, that will typically only have a single instance and changes are made to the live application.

(Video) Power Apps Licensing Explained

Additionally, business critical applications require additional thought around your Power Platform Environment Strategy, and Power App creation process – last thing you want to find out is that Joe Bloggs in HR has created a business critical application in the Default environment and IT are not aware of it!

Consideration 4 – Platform

Is Power Apps the right platform for your application?

Many times I’ve been involved in a pre-sales meeting where a customer has come to us with a requirement for a Power App solution. The majority of times the end result is a Power Platform solution, but sometimes the requirement isn’t suitable – one way or another.

Don’t try and make a business requirement fit a Power Apps solution. If you’re struggling to find the right solution or there are features within that requirement that don’t naturally fit into a Power App world – look outside the box.

Azure Web Apps are a great alternative to a Power App solution. They’re also a great way to overcome Power Platform licencing challenges – if you need a solution for 50,000 employees with a relational database and you don’t have premium licencing, then a Web App with a SQL backend is a much cheaper alternative. You lose the ‘low code’ Power App ‘maker’ environment, but if you have a team of developers than chances are they will know the likes of HTML and JS and Node. Publish using Azure Web App Proxy for a complete secure end to end service.

What are the Licencing options?

Seeded plan

  • Bundled with Office 365 and Dynamics 365
  • Does not require a Per User/Per App or Unlimited Apps plan but there are limits on the with Office 365 and Power Automate side
  • Office 365 specific abilities\limitations:
    • Includes Standard connectors but not Premium Connectors
    • Includes access to Office 365 features such as SharePoint directly but not via HTTP which is considered a Premium connector
    • Does not include Dataverse (Common Data Service) capacity
    • Does not include access to on premises services via the data gateway
    • Data API limited to 2000 requests per day
    • No model driven custom apps
    • No Power Apps portal access.

Per app plan

  • User with a license runs up to two specific apps (2 apps and 1 portal)
  • Sometimes referred to as the “Per App” Plan
  • Standard, Premium and Custom Connectors included
  • Access to 1 custom portal for each user
  • Access to on premises resources via a data gateway
  • Read Access to Dynamics 365 restricted entities
  • 50 MB Dataverse DB capacity
  • 400 MB Dataverse File capacity
  • 1000 Daily API Requests.

Per user plan

  • User with a license can run unlimited number of apps
  • Also known simply as the “Per User Plan”
  • Standard, Premium and Custom Connectors included
  • Unlimited Access to the (single) tenant portal
  • Access to on premises resources via a data gateway
  • Read Access to Dynamics 365 restricted entities
  • 250 MB Dataverse DB capacity shared with the tenant
  • 2 GB Dataverse File capacity shared with the tenant.

Add-On Licences

In addition to the primary three Power App licencing models, and in typical Microsoft fashion, when building out your solutions there are some notable additional licences to consider:

PortalsPortalsAI Builder
Login capacity (Authenticated users)Page view capacity (Unauthenticated users)AI Builder add-on
£150.80
per month for 100 login sessions6
£75.40
per month for 100,000 page views
£377.10
per unit/month6
Enable external users to access custom portals.Enable external users to access custom portals.Infuse AI into your apps.

5 A login provides an external authenticated user access to a single Power Apps portal for up to 24 hours. Multiple logins during the 24-hour period count as one billable login. Internal users can be licensed either by the Power Apps per app or per user plans, or a qualifying Dynamics 365 seeded subscription.

6 Each AI Builder add-on unit is a pack of 1 million service credits pooled at the tenant level. Use the AI Builder calculator to estimate costs.

(Video) Power Platform licenses demystified - Power Apps

More Information

For a detailed overview of the Power Platform Licencing model, download and read the licencing guide: https://go.microsoft.com/fwlink/?linkid=2085130

Understanding Power Platform Licensing: Part 1 – Power Apps (2)

Published by Aaron

I am an experienced, commercially aware, Microsoft 365 Solution Architect / Technology Leader with a strong and demonstrable background within the Collaboration, Productivity and Low-Code / Pro-Code Development platforms of Microsoft 365 and Azure.With over 15 years of experience working with Microsoft technology, I have worked with many organisations - from SMEs through to Enterprise, working to digitally transform their businesses with the successful implementation and adoption of Microsoft 365 and Azure products. This includes managing the lifecycle of the project from visioning exercises, discovery, solution design through to implementation and user adoption and change management strategies.More recently, my current roles include:Technology Development:- Development and implementation of the company’s technical strategy- Implementation of products and services relevant to the Microsoft Business Applications, Modern Workplace and Development technology areas within Microsoft 365- Manage and develop technical media assets, including product Service Catalogues and GTM related content- Monitor and evaluate new technology and make recommendations for required technological solutions- Deliver technical marketing activities, ensuring events are suitably presented with appropriate content.Pre-Sales:- Manage and deliver Pre-Sales activities- Review and approve sales proposals, for the viability and appropriateness of proposed solutions- Understand and interpret requirements and provide deliverable solutions based on the product portfolio- Provide technical input and validation during the creation of Sales proposals, and in response to RFIs / RFPs.View all posts by Aaron

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FAQs

How does licensing for Power Apps work? ›

Each “per app” license provides an individual user with rights to one app (canvas and/or model-driven) or one Power Apps portal, within a single environment. A single user might be covered by multiple “per app” licenses to allow the user to use multiple apps, without requiring a per-user license.

What are the different licensing options for Power Apps? ›

The three main types of Powerapps licenses are Per App, Per User, and Environment. Per App licenses are the most affordable option and give you access to one specific app. Per User licenses are more expensive but give you access to all apps in a Powerapps environment.

What is the difference between Power Platform and Power Apps? ›

The PowerApps is an application development platform that is part of the broader Microsoft Power Platform, whose capabilities are built on and utilize Azure cloud services. Dynamics 365 for Sales, Service, Field Service, Marketing, and Talent are all built natively on the platform.

How do I application Power Apps per license? ›

  1. Step one: Purchase per app plans. You can purchase per app plans from your sales channel or in the Microsoft 365 admin center. ...
  2. Step two: Allocate per app plans. After purchase, you allocate per app plans to environments. ...
  3. Step three: Set up apps to use per app plans. ...
  4. Step four: Share the app.
Dec 6, 2022

Do all users need a Power Apps license? ›

All the users who have the credentials for the service account and the service account need a Power Apps/Dynamics 365 license. If they don't have a Power Apps/Dynamics 365 license, all the users and the service account need Power Automate user licenses.

Can anybody work with Power Apps without license? ›

Every user of a PowerApp needs a license (whether he just want to use an app or if he wants to create a new app). So, the minimum license plan a user needs is "PowerApps for Office 365 and Dynamics 365".

What are the 6 major components of Power Apps? ›

Now let us know about some of the major components of PowerApps. Following are some of the main components in PowerApps.
...
PowerApps Components:
  • Gallery: A gallery is one way to visualize data within the application. ...
  • Screen: ...
  • Card: ...
  • Control: ...
  • Property: ...
  • Function:

What are the two types of Power Apps? ›

There are two main types of Power Apps: Canvas apps and Model-driven apps. Previously, Power Apps Portals would have fallen under this category. Microsoft have since released Power Pages, a standalone product that has evolved from the functionality of Power Apps Portals.

What are two types of software licensing? ›

There are two primary types of software licenses: commercial and open-source. Commercial software licenses typically require a fee, while open-source licenses are free to use. However, open-source software licenses do come with certain obligations.

What are the disadvantages of PowerApps? ›

Limitations of Microsoft Power Apps
  • Limited Customization. Unlike open-source software, Power Apps is the proprietary platform owned by the tech giant Microsoft, which simply means, it is not possible to customize the application endlessly. ...
  • Not Compatible With External Systems. ...
  • Runs Only on PowerApps App Player.
Jun 15, 2022

Is PowerApps SaaS or PaaS? ›

Based on Microsoft's official documentation, mentioned that Power Apps is a Software as a Service (SaaS) platform. However, Some people consider it as PAAS because they can build apps without worrying about the underlying infrastructure, Thus, it would qualify as PaaS.

What does Power Platform include? ›

The Power Platform includes Power BI, Power Apps, Power Automate, and Power Virtual Agents.

What is the difference between PowerApps and Power Automate license? ›

Power Apps premium licenses contain the rights to use Power Automate flows, when "in the context of the app" (meaning you connect the flow to data sources/targets that are used also in the app). However, Power Automate premium licenses DO NOT give you rights to run Power Apps that use premium connectors.

Can you sell apps made in PowerApps? ›

IIRC, you can "sell" PowerApps online through either private sales or Microsoft AppSource. Packages any ancillary Flow's, Custom Connectors, etc.

Is PowerApps free with Office 365? ›

1) Included – Office 365 – using PowerApps within the context of Office 365 is included in the service at no additional charge. Qualifying licenses for PowerApps include Business Premium, Business Essentials, F1 Plan, and the E1-E5 Enterprise Plans.

What is the difference between power apps standard and premium? ›

Power Apps and Power Automate have native access to two types of connectors: standard and premium. Apps or flows that only use standard connectors may be authored or executed by any user, apps or flows that use premium connectors may only be authored or executed by those with a premium license.

How many controls can a power app have? ›

As convenient as the PowerApps are, we have been developing internal apps using PowerApps for quite a while.

What are the minimum requirements for PowerApps? ›

Android: Version 7 or higher devices with at least 4 GB of RAM. Browser: Latest version of Microsoft Edge or Google Chrome. iOS: Version 10 or higher devices with at least 2 GB of RAM. Windows Desktop: Windows 10 Fall Creators Update with at least 8 GB of RAM.

Is Power Apps difficult to learn? ›

Power Apps is, fundamentally, a development platform for mobile and web apps. It allows “citizen developers” to reach capabilities that were once only reserved for high-end development tools by enabling low to no code custom application creation. What's more, Power Apps is generally quite easy to learn.

How can I practice power apps for free? ›

Open the Power Apps site, and then select Try free. If you're using a phone, select the menu in the top right corner, and then select Try free. Near the middle of the screen, select Pricing, and then select Start free trial.

Can I use PowerApps for personal use? ›

The PowerApps Community plan gives you a free development environment for individual use. With your individual environment, you can: Learn to build business apps and workflows with the full functionality of PowerApps and Microsoft Flow.

What are the three core concepts of Power Apps? ›

The three core concepts of PowerApps comprise Canvas App, Portal, and Model Driven.

What are the 3 types of power systems? ›

There are three basic types of distribution system designs: Radial, Loop, or Network. As you might expect, you can use combinations of these three systems, and this is frequently done. The Radial distribution system is the cheapest to build, and is widely used in sparsely populated areas.

Which are the 4 key products under the Power Platform? ›

Power platform has 4 primary components - Power BI, Power Apps, Power Automate and Power Virtual Agents. The other components that are often used with Power Platform are - Dataflex Pro (Common Data Services), AI Builder, and UI Flow (part of Automate).

What programming language is used in Power Apps? ›

Microsoft has announced the name of this language is Microsoft Power Fx. Good luck with PowerAppsing!

What is Dataverse in Power Apps? ›

Dataverse lets you securely store and manage data that's used by business applications. Data within Dataverse is stored within a set of tables. A table is a set of rows (formerly referred to as records) and columns (formerly referred to as fields/attributes).

Where does Power Apps store data? ›

Data sources for PowerApps are stored in the cloud, or locally stored in a specific app. The most common form of data sources used for PowerApps are tables. By connecting to cloud and local data sources, you can read, amend, and reformat tables across all of your apps, with total ease and control.

What are the 3 common types of software licenses? ›

These encompass a wide spectrum of licensing scenarios, from free software (public domain) to paid commercial software (proprietary). Between these two extremes, there are also three categories (GNU/LGPL, permissive, and copyleft) that apply to various forms of open-source projects.

What are the four licensing? ›

The licensing objectives

The prevention of crime and disorder. Public safety. The prevention of public nuisance. The protection of children from harm.

Which one is an example of licensing? ›

An example of a licensing agreement is a contract between the copyright holders of software and another company, allowing the latter to use the computer software for their daily business operations.

What is the salary of PowerApps job? ›

Power Apps Developer salary in India ranges between ₹ 3.2 Lakhs to ₹ 10.1 Lakhs with an average annual salary of ₹ 5.5 Lakhs. Salary estimates are based on 462 latest salaries received from Power Apps Developers.

What is the maximum file size for PowerApps? ›

Limitation: Power Apps allows only uploads of file sizes upto 50 MB. Also there is 1 minute timeout when uploading files, so on large file sizes or poorer network the operation times out.

Does PowerApps have an API? ›

Introducing Custom APIs in PowerApps! Custom APIs are a powerful way to connect to any existing API, hosted anywhere, from PowerApps. You do not need a PowerApps Enterprise subscription to register or use a Custom API. Custom APIs are RESTful endpoints that you can connect to and use from PowerApps.

Do you need coding for Power Platform? ›

Learning to code isn't necessary for app development. Anyone can build an app without coding. All you need to do is find the right app builder to accommodate your needs. Then it's just a matter of learning to use that platform, adding your features, and customizing the look and feel of the app with your own branding.

What is the difference between Dynamics 365 and Power Platform? ›

A Dynamics 365 role-based app is a pre-packaged solution that is configured to fit unique business process rules and user requirements. In contrast, a Power App must be built from scratch, or customised from a pre-built template.

What is Power Platform overview? ›

Microsoft Power Platform is a low-code platform for rapidly building customized end-to-end business solutions. It consists of five product areas: Power Apps, Power Automate, Power BI, Power Virtual Agents, and Power Pages. Each area can be used individually or together.

How does licensing for PowerApps work? ›

Each “per app” license provides an individual user with rights to one app (canvas and/or model-driven) or one Power Apps portal, within a single environment. A single user might be covered by multiple “per app” licenses to allow the user to use multiple apps, without requiring a per-user license.

What licenses include PowerApps? ›

If you are licensed for Microsoft 365 (Business or Enterprise plan), you get the following capabilities included as part of your license. Power Apps for right “seeded” capabilities, including the ability to create Canvas applications with standard “free” connectors.

Does Office 365 E3 license include PowerApps? ›

Yes, Microsoft Office 365 E3 does include PowerApps. You can use any of the non-premium connectors such as SharePoint & Excel for no additional cost.

Is Power Apps worth learning? ›

Power Apps is an amazing tool that accelerates application development. The Microsoft Power Platform (and Power Apps Specifically) has been tremendously beneficial to our organization, enabling rapid process automation and iterative development without sacrificing user experience, security, or customization.

How much is Power Apps for small business? ›

This is an entry-level business product with per-user licensing costs ranging from $5 to $20 per user each month. At this level, you'll quickly learn that Power Apps is not included and requires additional licensing fees.

What is the difference between make Power Apps and create Power Apps? ›

make.powerapps.com is the Maker Portal. From here you manage environments and solutions and build out the common data service or AI builder components. create.powerapps.com is your canvas app studio where you edit and build specific apps. Create Portal > Studio for Building and Editing specific apps.

Can I use PowerApps without license? ›

Every user of a PowerApp needs a license (whether he just want to use an app or if he wants to create a new app). So, the minimum license plan a user needs is "PowerApps for Office 365 and Dynamics 365".

What is the difference between Power Apps Plan 1 and Plan 2? ›

PowerApps Plan 1: To store and manage data it provides access to Common Data Service. User can use premium connectors, on-premises data and also can run canvas apps that are built on Common Data Services. PowerApps Plan 2: With code plug-ins and real-time workflows PowerApps plan 2 allow users to run model-driven apps.

Is there a free version of PowerApps? ›

Both Power Apps Plan Trial and Power Apps Developer Plan are free, but are created for different purposes: Power Apps Plan Trial gives you the Power Apps per user plan for 30 days. This duration is meant for trying out production Power Apps applications. Once your trial expires, you can purchase a plan.

What is the difference between Power Apps standard and premium license? ›

Power Apps and Power Automate have native access to two types of connectors: standard and premium. Apps or flows that only use standard connectors may be authored or executed by any user, apps or flows that use premium connectors may only be authored or executed by those with a premium license.

How are external authenticated users licensed for a Power Apps portal? ›

Where external portal users are anonymous, the licensing model for Power Apps Portals is based on pages views. This requires a licence with capacity to cover the maximum number of page views across all portals.

Does E3 license include Power Apps? ›

Enterprise Power Apps Licensing: Per User vs. Per App vs. Pay-as-You-Go. If you're already subscribed to the Microsoft 365 E3 or E5 plan, you can start using Power Apps right away.

What is a Power Apps Plan 2 license? ›

PowerApps Plan 1: To store and manage data it provides access to Common Data Service. User can use premium connectors, on-premises data and also can run canvas apps that are built on Common Data Services. PowerApps Plan 2: With code plug-ins and real-time workflows PowerApps plan 2 allow users to run model-driven apps.

What are the two types of PowerApps? ›

There are two main types of Power Apps: Canvas apps and Model-driven apps. Previously, Power Apps Portals would have fallen under this category. Microsoft have since released Power Pages, a standalone product that has evolved from the functionality of Power Apps Portals.

What license do you need for Dataverse? ›

However, if you need to create a Dataverse instance within production or sandbox environments (other than the default environment), you're still required to have a premium Power Apps or Power Automate license.

What is the difference between Dynamic 365 and PowerApps? ›

App Build. A Dynamics 365 role-based app is a pre-packaged solution that is configured to fit unique business process rules and user requirements. In contrast, a Power App must be built from scratch, or customised from a pre-built template.

Does authenticated users include local users? ›

The Authenticated Users group includes all users whose identities were authenticated when they logged on. This includes local user accounts as well as all domain user accounts from trusted domains.

Which permissions do authenticated users have? ›

Assigning permissions to Authenticated Users on the network home share directory means that each home folder will inherit the proper permissions to allow logged-in users to access their home directories. It also means that every user will have access to every other user's home directory.

How do I give permission to authenticated users? ›

Click Permissions, then click Add: Type auth and click OK to return the Authenticated Users group. Select Authenticated Users, then click Allow for Full Control. Click OK to set permissions for authenticated users, then OK again to close the properties page.

What is the difference between E1 and E3 licensing? ›

E1 also includes email, file storage (OneDrive for Business), real-time collaboration (SharePoint), communication (Yammer) and instant messaging and online meetings (Teams). E3 Subscriptions include all the features in E1 with Microsoft Office apps available on desktop, web and mobile.

Is Power Apps included in E1 license? ›

Qualifying licenses for PowerApps include Business Premium, Business Essentials, F1 Plan, and the E1-E5 Enterprise Plans.

What is difference between E1 and F3 license? ›

One key difference between the Office 365 E1 and Microsoft 365 F3 plans is the inclusion of a 50GB Exchange Online mailbox and access to public folder mailboxes in the E1 plan, making it a more comprehensive solution for office workers who need more storage and collaboration capabilities.

What is Power Apps Plan 1? ›

PowerApps Plan 1 is for team wide business apps that use basic server-side logic in CDS for Apps or premium connectors and are not extending Dynamics 365 data or processes. PowerApps Plan 2 is the main platform plan, it's required to build powerful LOB apps for mobile and web.

Can multiple people use the same power app at the same time? ›

Go-to make.powerapps.com, browse to the app we connected to Github, click on the three dots and select Share. Search for the other developers you want to give access to app and click the checkbox to make them co-owners. Select Share when done.

Videos

1. Webinar Recording: Understanding Power Platform licensing
(Vlad Talks Tech)
2. Microsoft Power Platform Fundamentals in 15 Minutes
(Lisa Crosbie)
3. Power Platform Licensing in Three Minutes
(Brian Illand)
4. Power Platform Wave 1 2023 Release: Top 10 Features You Need to Know!
(Lisa Crosbie)
5. Overview of Power Apps Environments and Solutions
(Dhruvin Shah)
6. Microsoft Power Platform Fundamentals [Exam PL-900] Full Course
(Susanth Sutheesh)
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