Power Apps & Power Automate Licensing: What’s right for you?
The Power Platform offers a variety of licenses, each tailored to different needs. But what are the key differences, and how do you decide which one is right for you? In this guide, I’ll simplify the licensing options available and help you understand when to choose each. Keep in mind that this is a simplified explanation. There are additional licenses that may better suit specific business cases.
We will not be covering Dataverse capacity, Power Automate Desktop (RPA), or Power Pages licensing in this article.
This article is written around October 2024, so please note that licensing may change in the future.
Premium services / Premium connectors
In the Power Platform, we differentiate between standard and premium connectors. Standard connectors include familiar services like SharePoint, Outlook, and Teams, which most users interact with daily. Premium connectors, on the other hand, cover more advanced services like Dataverse or SQL Server. If your app or flow utilizes a premium connector, it automatically becomes a premium app or premium flow, requiring a corresponding license.
Creating and using your own custom connector or integrating with external services through APIs will also classify your app or flow as premium.
Here’s a list of premium connectors that you can review to understand which services may require premium licensing.
Whether your app or flow uses one or multiple premium connectors, the required licensing stays the same.
Note: While we are focused on Microsoft licensing, keep in mind that some third-party services may require additional licenses, adding extra costs on top of your Power Platform license.
Power Apps
Power Apps is a platform that allows users to build custom apps to solve business problems, whether through simple forms or complex solutions. Depending on your needs, there are different licensing options to choose from, especially when working with premium features.
When selecting the right license, it's important to note that the Power Apps per app plan is stackable. This means that if a user needs access to multiple apps that use premium connectors, they will require a separate license for each app. For example, if a user accesses two premium apps, you’ll need to assign them two licenses, one per app. As more premium apps are added, the required licenses increase accordingly.
The flowchart below helps guide you through selecting the right Power Apps license.
Power Automate (Cloud flows)
Power Automate is a powerful tool that automates workflows between apps and services, helping to streamline repetitive tasks and boost efficiency. Depending on how you plan to use it, whether for simple workflows or complex, multi-step automations with premium connectors, there are different licensing options available.
When deciding which license to choose, keep in mind that Power Automate offers different plans based on usage:
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The flowchart below helps guide you through selecting the right Power Automate license.
Power Apps for Office 365 / Power Automate for Office 365 (Microsoft 365 seeded licenses)
If your apps or flows only use standard connectors like SharePoint, Outlook, or Teams, the good news is you’re covered under your Microsoft 365 license. This is called a seeded license (also known as Power Apps for office 365 and Power Automate for Office 365), which means you automatically have access to basic Power Apps and Power Automate features without needing additional licenses. However, if you decide to use premium connectors, you’ll need to upgrade.
The table below outlines the specific Microsoft 365 plans and the corresponding Power Platform capabilities included with each.
Microsoft Dynamics 365 license
If you're already using Microsoft Dynamics 365, you likely have access to some Power Apps and Power Automate features through your existing Dynamics license. This includes premium connectors and features within the Dynamics 365 environment. Be sure to review your Dynamics licensing details before purchasing any additional licenses to avoid unnecessary costs.
For more information about Power Platform licenses in combination with Dynamics 365, you can refer to Microsoft’s official documentation: Power Apps and Power Automate for Dynamics 365