Power Apps Licensing Explained
Dive into this comprehensive guide to Power Apps licensing to explore your licensing options and ensure you select the optimal license for your business’s needs.
In the rapidly evolving landscape of modern business, digital transformation has become a non-negotiable. Microsoft’s Power Apps, a dynamic platform that empowers businesses to create custom applications, can help you build innovative solutions that streamline processes, empower employees, and enhance customer experiences.
In this comprehensive guide, we delve into the multiple options for licensing Power Apps, the benefits they include, and their pricing structures, as well as essential best practices to keep in mind during implementation. By adhering to these guidelines, you can ensure seamless licensing management, mitigate risks, and unleash the full potential of Power Apps within your operations.
Introduction to Power Apps
Power Apps is a Microsoft platform that allows you to create custom applications without extensive coding knowledge. With its intuitive drag-and-drop interface and pre-built templates, both pros and beginners can build responsive, data-driven apps that streamline processes and boost productivity across devices and platforms.
Integration with other Microsoft applications and third-party services makes Power Apps a versatile tool for various use cases, from simple departmental apps to complex enterprise-level solutions. Understanding the platform’s capabilities is crucial for making informed decisions about Power Apps licensing.
For more on the basics of Power Apps, check out these additional Kwixand blog posts:
Understanding Power Apps Licensing
Power Apps offers a range of licensing options designed to cater to diverse business needs and user requirements. From per user, per app, and pay-as-you-go licensing to bundled Microsoft 365 plans and even an AI add-on, we’ve broken down all the options for licensing Power Apps to help you find the right solution for your business.
Power Apps Per User License
The Power Apps Per User License, often referred to simply as Power Apps Premium, offers users the full range of available capabilities within the Power Apps platform. Designed for individuals who need versatile access to create, use, and share custom apps, this license type provides all the features you need to drive innovation and productivity, user by user.
Features included with the Power Apps Premium Per User License:
App Creation – Power Apps Per User License allows users to create canvas and model-driven apps with an intuitive, no-code or low-code approach. This empowers both developers and non-developers to build tailored applications.
Data Integration – Users can seamlessly connect to various data sources, including SharePoint, SQL, SERVER, and other cloud-based services, enabling efficient data integration and utilization.
Customization – This licensing option offers advanced customization options, enabling you to design app layouts, workflows, and business logic to meet specific business needs.
Unlimited Apps and Websites - The Power Apps Premium License allows you to create an unlimited number of both apps and custom websites for each licensed user.
Access to Premium Connectors – Users can leverage premium connectors to connect with a broader range of external services and systems, enhancing app functionality.
Run Apps in a Web Browser or Mobile App – Power Apps Per User License allows users to run apps in a web browser or the Power Apps mobile app, ensuring access from various devices.
Common Data Service Integration: You can utilize the Common Data Service (CDS) to create a unified data platform with 250 MB of database space and a 2 GB file limit.
AI Credits – The Power Apps Premium Per User License now comes with 500 AI Builder credits to take your apps to the next level.
The Power Apps Premium Per User License is available through subscription-based monthly pricing of $20 per user. Microsoft also has a special offer for accounts signing up with over 2,000 new user licenses of only $12 per user per month, but with this many users, you will more than likely want to contact Microsoft or work with your Microsoft Partner to discuss custom enterprise pricing.
Power Apps Licensing for Microsoft 365
The Power Apps Microsoft 365 Licensing offers a cohesive and integrated approach to leveraging the Power Apps platform within the Microsoft 365 ecosystem. This licensing model seamlessly blends the power of app development and customization with the collaborative and productivity-enhancing features of Microsoft 365, providing organizations with comprehensive toolkit to drive innovation and streamline workflows.
At its core, the Power apps Microsoft 365 Licensing functions as an inclusive component of select Microsoft 365 plans. This means that users who are already subscribed to a Microsoft 365 plan that includes Power Apps have access to the platform's capabilities without the need for separate licensing arrangements.
The Power Apps Microsoft 365 License facilitates a seamless connection between Power Apps and other Microsoft 365 services, such as SharePoint, Excel, and Teams. This integration allows users to embed apps within familiar tools, enhancing collaboration, data sharing, and visibility across the organization.
While the majority of Power Apps features included in the Premium License are also available in the Microsoft 365 License, there are a few limitations. With the Microsoft Dynamics 365 License, you will only be able to create apps and not custom websites, you will not receive the 500 AI credits that are offered with the Per User License, and the number of custom tables you can create in a month is restricted to 15. The standard Microsoft 365 License has slightly more restrictions with no custom tables, Dataverse access limited to Teams only, and the ability to link to other data sources reduced to only standard connectors within the Microsoft family of products.
While the Microsoft 365 Licensing option may not contain every feature that Power Apps offers, the platform still delivers an easy to use, intuitive, low-code option for custom app creation that will meet many of your organization's demands. The best part is you may already have access to Power Apps through your Microsoft 365 or Dynamics 365 subscription.
Power Apps Per App License
Power Apps Per App Licensing offers a targeted and cost-effective approach to utilizing the Power Apps platform. This licensing model allows you to access and utilize specific custom applications without requiring a full Power Apps license, making it a flexible solution for scenarios where users have distinct app-related needs.
With Power Apps Per App Licensing, you can choose to license individual custom applications that have been designed and deployed within the Power Apps environment. Instead of providing a comprehensive license to each user, this model enables organizations to allocate licenses based on specific app requirements. Users who need access to a particular app can do so using the Power Apps Per App License, while other users who do not require access to that app may opt for other licensing options.
It’s important to note that while Power Apps Per App Licensing provides a cost-effective solution for specific app needs, it does not cover all Power Apps capabilities available under other licensing models. Users with a Power Apps Per App License have access to the app’s functionality and features but will not be able to create new apps or access broader platform capabilities unless they hold a different type of license.
By offering granular app-specific licensing at only $5 per user per app per month, Power Apps Per App Licensing empowers organizations to tailor their licensing approach to the unique requirements of different user groups. This flexibility optimizes costs while ensuring that users have access to the specific applications, they need to streamline workflows and enhance productivity.
Pay-As-You-Go for Power Apps
Power Apps Pay-As-You-Go Licensing provides a flexible and scalable way to leverage the capabilities of the Power Apps platform based on actual usage. The licensing model allows users to create, use, and share custom applications while paying only for the resources consumed, making it an adaptable solution for businesses with varying app development and usage needs.
The Pay-As-You-Go model provides a consumption-based approach, where users are charged based on factors such as the number of app launches, the amount of data processed, and the duration of app usage. This allows you to align costs directly with usage patters, optimizing spending by avoiding fixed licensing fees that might not accurately reflect app utilization.
As with the Per App Licensing, the Pay-As-You-Go Licensing model includes the basic functionalities of Power Apps and may offer a degree of flexibility, but certain advanced features or platform capabilities might be limited and your cost each month will vary depending on usage.
Power Apps Extensions
In addition to the standard models of Power Apps licensing that grant you and your business access to the Power Apps platform to create and utilize custom apps within your business, you can also purchase Power Pages Extensions that allow external users to access your apps either anonymously, as customers and clients to place orders, make reservations, fill out forms, and access user profiles, or as authenticated users, as contractors, logistics and software partners, and others that are outside of your enterprise but still need authenticated access to the app.
The Power Pages Extension for authenticated users gives access to business websites for up to 100 users for an additional $200 per month, 10,000 users for $75 per month, or 100,000 for $50 per month. This extension plan includes a built-in content delivery network and support as well as Dataverse storage. For anonymous users, the Power Pages Extension will allow access to 500 users per site at a cost of $75 per month with tiered pricing for larger user packages of 10,000 a month at $37.50 and 100,000 users for only $25 per month.
AI Builder Add-On for Power Apps
The newest offering from Power Apps is the AI Builder, introducing a realm of advanced capabilities that infuse artificial intelligence and machine learning into your custom applications. This add-on allows you to harness AI-driven insights, automate complex processes, and deliver enhanced user experiences.
The AI Builder enriches Power Apps with a spectrum of AI-based functionalities:
Predictive Analysis – Leverage AI algorithms to predict trends, behaviors, and outcomes based on historical data, aiding informed decision-making.
Natural Language Processing – Enable apps to understand and interpret natural language, facilitating voice commands, chatbots, and sentiment analysis.
Image Recognition – Utilize computer vision capabilities to analyze images, enabling applications to identify objects, faces, and patterns.
Process Automation – Automate complex workflows by using AI to intelligently route tasks, manage approvals, and trigger actions based on conditions.
Recommendation Systems – Build apps that offer personalized recommendations to users, enhancing user engagement and satisfaction.
As an add-on, the AI Builder does require access to your Microsoft 365 admin center with global administrator or billing administrator roles in order to pull all of the information it needs to provide you with AI-driven insights.
The pricing of the Power Apps AI Builder License is based on service credits with each unit consisting of 1 million service credits at a cost of $500. To understand how these credits translate to AI services, check out the Microsoft AI Builder Calculator.
Licensing Compliance and Best Practices
Navigating the realm of software licensing for Power Apps is essential for you to ensure legal compliance, optimize costs, and make the most of your investments. Adhering to licensing compliance and following best practices can help you streamline your Power Apps deployment while avoiding potential pitfalls.
First and foremost, it is crucial to thoroughly understand the terms and conditions outlined in Microsoft’s licensing agreements for Power Apps. Different licensing models come with specific usage rights, features, and limitations. Make sure you are aware of the scope of usage allowed under your chosen licensing plan to prevent unintentional violations.
As with any software, you'll need to properly manage user access and licensing to prevent unauthorized usage. You'll also need to educate your staff about Power Apps licensing and usage guidelines and to periodically conduct internal audits to monitor compliance with licensing agreements.
Get a Free Consultation with a Trusted Microsoft Partner
If you are still uncertain about which licensing option is right for your business or need guidance on how to initiate licensing, consider seeking assistance from a Microsoft Partner like Kwixand Solutions. Our experts at Kwixand can provide valuable insights and guidance to tailor your Power Apps and other Microsoft licensing to your organization’s unique needs. Get started today with a free consultation and see how Kwixand can get you the most out of your Microsoft licenses.