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Power Platform Licensing Complete Guide

Everything you need to know about licensing Power Apps, Power Automate, Power BI, and Power Pages

Understanding Power Platform Licensing

Microsoft Power Platform licensing can be complex, with multiple options designed for different use cases and organization sizes. This guide breaks down the licensing models to help you make informed decisions and optimize costs.

Power Apps Licensing

Power Apps offers two primary standalone licensing models:

Power Apps Premium

$20 /user/month
  • Unlimited apps per user
  • Premium connectors included
  • Dataverse database capacity
  • Custom connectors
  • On-premises data gateway
  • AI Builder credits (500/month)

Power Apps per App

$5 /user/app/month
  • Access to one app
  • Premium connectors for that app
  • Dataverse capacity included
  • Best for targeted deployments
  • Cost-effective for limited users
  • Scales with app count
Pro Tip: If a user needs access to 4+ apps, Power Apps Premium is more cost-effective than per-app licensing. Calculate your break-even point based on actual app usage patterns.

What's Included with Microsoft 365?

Microsoft 365 and Office 365 licenses include limited Power Apps capabilities:

  • Standard Connectors Only: Connect to Microsoft 365 services, SharePoint, Excel, etc.
  • No Premium Connectors: SQL Server, Salesforce, and other premium connectors require standalone license
  • No Dataverse: Limited to SharePoint lists or other M365 data sources
  • Customization of M365: Extend Teams, SharePoint with custom apps

Power Automate Licensing

Power Automate offers several licensing tiers:

License Type Price Use Case
Power Automate Premium $15/user/month Unlimited cloud flows, premium connectors, attended RPA
Power Automate Process $150/bot/month Unattended RPA, process automation at scale
Power Automate Hosted Process $215/bot/month Microsoft-hosted unattended RPA, no infrastructure needed
Included with M365 Included Standard connectors, personal productivity flows

Premium vs Standard Connectors

Understanding connector types is crucial for licensing decisions:

  • Standard Connectors: Microsoft 365, SharePoint, Outlook, Teams, OneDrive - included with M365
  • Premium Connectors: SQL Server, Dataverse, HTTP with Azure AD, Salesforce - require Premium license
  • Custom Connectors: Connect to any REST API - require Premium license

Power BI Licensing

Power BI licensing depends on how content is shared and consumed:

Power BI Pro

$10 /user/month
  • Create and share reports
  • Collaborate in workspaces
  • Required for both creators and consumers (when sharing with Pro users)
  • 1GB model size limit
  • 8 refreshes/day

Power BI Premium Per User

$20 /user/month
  • All Pro features
  • 100GB model size limit
  • 48 refreshes/day
  • Paginated reports
  • AI features
  • Deployment pipelines

Power BI Premium Capacity

For large-scale deployments, Power BI Premium capacity licensing provides:

  • Unlimited Viewers: Free users can view content in Premium workspaces
  • Dedicated Resources: Consistent performance with reserved compute
  • Larger Models: Up to 400GB dataset size
  • XMLA Endpoint: Third-party tool connectivity
Important: Power BI Premium capacity starts at approximately $5,000/month (P1 SKU). It's cost-effective only when you have many report consumers who don't need to create content.

Power Pages Licensing

Power Pages uses a capacity-based model with authenticated and anonymous user access:

User Type Price per 100 users/month Description
Authenticated Users $200 Users who log in to access portal content
Anonymous Users $75 Users who view public pages without logging in

Dataverse Capacity

Dataverse storage is essential for Power Platform solutions:

  • Database Capacity: Core data storage for tables and records
  • File Capacity: Attachments and file storage
  • Log Capacity: Audit logs and activity tracking

Capacity is pooled at the tenant level. Monitor usage in the Power Platform Admin Center to avoid overages.

Cost Optimization Strategies

1. Right-Size Your Licenses

  • Audit actual usage before purchasing
  • Use per-app licensing for limited app deployments
  • Consider M365 seeded capabilities first

2. Leverage Included Entitlements

  • Dynamics 365 licenses include Power Apps and Power Automate use rights
  • Power Apps Premium includes Power Automate capabilities
  • Power BI Pro is included in Microsoft 365 E5

3. Pool Capacity Wisely

  • Dataverse capacity pools across the tenant
  • AI Builder credits can be shared
  • Power Pages capacity is per-environment

Common Licensing Scenarios

Scenario 1: Department App Deployment

A 50-person department needs a custom Power App with Dataverse:

  • Option A: Power Apps Premium: 50 × $20 = $1,000/month
  • Option B: Power Apps per App: 50 × $5 = $250/month
  • Recommendation: Per-app if users only need this one app

Scenario 2: Company-Wide Automation

Organization wants to enable all employees to create flows:

  • Start with M365 included capabilities (standard connectors)
  • License power users with Premium for advanced needs
  • Use Process licenses for unattended RPA bots

Additional Resources

Disclaimer: Pricing and licensing information provided on this page is for general guidance only and may not reflect the most current Microsoft pricing or licensing terms. Microsoft frequently updates its licensing models, pricing, and feature inclusions. We are not responsible for any inaccuracies or outdated information. Always verify current pricing and licensing requirements directly with Microsoft's official licensing resources or your Microsoft partner before making purchasing decisions.

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