The Fundamentals of Power Platform Licensing

The Fundamentals of Power Platform Licensing

It could be a bit tricky when it comes to understanding the licensing of different products in the Power Platform which include Power Apps, Power BI, Power Automate, Power Pages, Power Apps Portal, AI Builder, Power Virtual Agents, and Dataverse). We, at DynaTech, have invested quality time in dissecting the Power Platform licensing details so we can provide a comprehensive guide to the laymen that is more approachable.

As a consulting firm, we are observing that there is tremendous growth in the usage of Microsoft’s Power Platform. Using the Power Platform, businesses can generate captivating visualization of data, automate business procedures, create chatbots to be embedded in the apps, and develop standalone applications. The main attribute that makes Power Platform popular is its ‘low code, no code’ tactic.

Before understanding the licensing details, let’s first get an overview of the Power Platform applications. Based on the unique use cases of your organization, the value of the Power Platform will vary.

Power Platform Applications

Microsoft Power Platform

As is visible from the above visualization, Power Platform comprises Microsoft 365, Azure, Dynamics 365, and standalone applications. It also consists of a set of data connectors that can help you to build applications that will work with your line of business systems and generate dominant workflows, reports, dashboards, and intelligent bots.

1. Power BI:

Five major industry-driving business applications are part of the Power Platform. Power BI uses a unified, ascendable platform for self-service as well as enterprise business intelligence (BI) to represent, connect and envision data. To gain rich and deep data insights, Power BI is highly recommended. Organizations can use Power BI to make smart decisions that are more factual.

2. Power Apps:

Power Apps is designed for the quick building and initiation of apps with the help of built-in templates, drag-drop functionality, and swift installation. Further, the rollout is possible as and when enhancements are required. With Azure functionalities and custom data connectors, the scalability of Power Apps has increased significantly. Both on-premises and cloud solutions are available. Power App licensing is important in the Power Platform verse because of its capabilities.

3. Power Automate:

Earlier known as Microsoft Flow, Power Automate is the component that proffers low code or no-code ability. Use it to develop workflows to automate tedious, time-consuming, and repetitive tasks. Concentrate on using the pre-built AI offerings of Power Automate so that your employees will have ample time to focus on strategic decision making.

4. Power Virtual Agents:

Build smart and interactive chatbots that can tackle the frequent regular questions and issues by the users, using Power Virtual Agents. The GUI is simple that can be used by anybody without any further ado. Intelligent, powerful chatbots can be created without the need for expertise in AI mechanisms. Stress-free integration of chatbots with everyday applications is quite useful and simple. In-built connectors, customized workflows from Power Automate, and scenario creation of Microsoft Bot Framework can be used for developing and deploying chatbots.

5. Power Pages:

Power Pages is the latest addition to the Power Platform family. It can be tagged as a low code business website builder. It can be further explained as enterprise grade, low code platform for the creation, hosting, and administration of enriched, data-driven business web applications across the globe. Power Pages is a software-as-a-service (SaaS) platform that can manage and optimize websites on both desktops and mobiles. Use the prebuilt templates and websites that can be tailored as per the requirement.

6. Data Connectors:

In addition to the core five main applications, Power Platform comprises some other applications. One of them is Data connectors. Use connectors to connect with the cloud and literally work with millions of apps as well as devices. Some major connectors that enterprises use is Microsoft 365, Salesforce, Dropbox, Google Services, etc.

7. AI Builder:

Bring the competence of Microsoft AI into your system with AI builder. It allows point-and-click practice and can be integrated simultaneously into Power Automate and Power Apps. Power up your game with the incorporation of Artificial Intelligence into applications, processes, and virtual agents.

8. Dataverse:

Dataverse was previously known as Common Data Service (CDS). Dataverse is a cloud-based database hosted by Microsoft’s Business Applications team. Dataverse is used to securely store and handle the data that is used in the business ecosystem. A Set of standard tables that can be used in a particular scenario is provided. Along with it, businesses can create customized tables and populate them as per the need using Power Query. With the help of the Power Apps connectors, data available in the Dataverse can be used and shared easily in the organization. Microsoft Dataverse for Teams assists users in swiftly developing apps and smart bots inside Microsoft Teams.

To answer the most pressing business challenges, a Power Apps license is crucial. More businesses are being aware of the necessity of the Power Platform. Power platform can automate mundane business procedures, develop new apps, obtain records and dashboards, or install chatbots in a few simple clicks.

Need for the Power Platform Licensing

To understand the Microsoft Licensing model could be a grueling task. One might even need a Ph.D. to absorb knowledge about all applications, whether it is Power Apps Licensing or Power Virtual Agents Licensing. Microsoft is a big maze of varied products which makes laymen confused regarding the application accessibility. Some users assume that since Power Apps or Power Automate is part of Microsoft 365, they can use them as free to use apps. It could be the case if you don’t want access to the multiple powerful and advanced features of the Power Platform.

Licensing details for all applications of the Power Platform

1. Microsoft 365

The core policy of Microsoft 365 has always been to offer an all-inclusive platform that is customizable and easy to use. Therefore, there are some Power Platform utilities that can be availed with Microsoft 365. If the license for Microsoft 365 has been taken by your enterprise, the following utilities are also incorporated as a part of it.

  • Basic Power Apps capabilities in which the creation of Canvas application can be done with standard ‘free-to-use’ connectors.
  • Basic Power Automate capabilities that let you execute flows within the constricted daily API limits with standard ‘free-to-use’ connectors.
  • Power Virtual Agents for teams that run inside the MS Teams client.
  • Dataverse for Teams that has constraint limits and can run inside the MS Teams client to build a rich application.
  • If Microsoft 365 E5 is availed, Power BI Professional is also included.
  • Customization of Microsoft/SharePoint lists by means of Power Apps.

The most common question that arises after this level is why purchase licensing for other apps when major features are included with Microsoft 365. Well to answer that, some of the features are in the basic category while most of the features are classified as premium.

So, if your organization is in the need of advanced features, follow the below guide to cognize the licensing of multiple applications of Power Platform.

2. AI Builder

To instill AI into your applications and flows, use the AI Builder component. It is a great component to work when embedded AI services are needed in the applications. Power Automate includes AI Builder with attended RPA (Robotic Process Automation) flow or could be bought additionally. From December 2021, Microsoft has announced that AI Builder could be availed without any additional cost in Power Apps per app plan.

AI Builder capacity

  • 1M Service Credit
  • $500 per month

AI Builder with Attended RPA

  • Incorporated
  • 5000 Service Credit

3. Licensing for Dataverse

Microsoft has designed an amazing cloud-based database that has all the same capabilities as the hosted database systems such as business rules, backup/restore, relation data model, advanced security as well as full Application Lifestyle Management (ALM). With the purchase of Power Automate, Power Apps, or Power Virtual Agents, Dataverse is bundled. Individuals do not have to purchase the license for Dataverse independently.

The most straightforward license of Power Apps could get you a based capacity of 5GB or 10GB. Eventually, it can increase with the purchase of each user license. If your business needs additional Dataverse capacity, it can be bought additionally with 1GB at $30 per GB a month.

4. Power BI Licensing

The most upfront licensing among all Power Platform applications is Power BI. Three editions are available in Power BI:

1. Free: Only useful to develop dashboards and reports and integrating them in the Dataverse for Teams.

2. Professional: Can be availed to share dashboard data and reports across the firm with the help of Power BI and integrated into any apps contained by the licensing type. $10/user per month is the cost of the Power BI Professional and licensed as ‘per user’.

3. Premium: If your organization is enormous where ‘license per user’ is not feasible in cost per se and has hefty reporting requirements, you can opt for the Premium version. There are two types of options in the Premium plan: one is license per user which costs $20/user per month while for other dedicated setups, it could be $4900/month which could be used by maximum 500 users.

5. Power Apps Licensing:

The most complex licensing among all the Power Platform license models is the PowerApps licensing. The licensing model has already been changed quite a time. Power Apps has two distinct user interfaces:

1. Power Apps Canvas: Let your creativity flow by creating web and mobile applications using the free form app ‘Canvas.’ Power Apps Canvas uses standard connectors and is free to use in Microsoft 365 Ecosystem.

2. Power Apps Model Driven: Model driven apps are propelled through data as well as component focus approach for application development. Unlike its counterpart Canvas apps, the design is restricted to predefined, inbuilt components and layouts. Model driven apps are the technology behind the most famous applications Dynamics CRM (Customer Relationship Management) as well as Customer Engagement.

3. Power Apps Pages: To build external facing web portals such as customer services portals, community portals, etc. where users prefer to browse anonymously, Power Apps Pages is required. Earlier it was identified as Power Apps Portals.

When your business requires large capacity, premium connectors, and to develop model-driven apps that are complex, please make sure to purchase the Dynamics 365 PowerApps license. Three variations are available in the Power Apps premium licenses. We will break it down in a table for easy understanding.

Power Apps Licensing Guide

Features Per User Per Application Pay-As-You-Go
Plan cost $20/user per month $5/user/month per app $10/active/user/app per month
Available features # Run unlimited portals and applications per single user with the monthly fee


# Provides 500 AI Builder service credits

# Run one portal or application per user


# Stacking licensing for access to each app or portal is additional

# Provides 250 AI Builder service credits per month

# Azure subscription is used to use pay per user depending on the unique portals or apps a user runs each month


# An Azure subscription is required

Power Automate rights All rights available that incorporate premium connectors via synchronous and asynchronous capabilities  All rights available that incorporate premium connectors via synchronous and asynchronous capabilities  All rights available that incorporate premium connectors via synchronous and asynchronous capabilities 
Capacity in Dataverse  250MB database capacity  50MB per use 1GB database capacity

6. Power Pages

Use Power Pages by Microsoft to create the front-facing client facing web portals on a low code platform. Leverage the Dataverse and Power Pages to build a data-centric, low code business.

Websites created with Power Pages are secured and anonymous.

To develop a site/portal that can interact with anonymous/external users, you need to get a Power Pages license or Power Apps per-user plan which automatically provides you with the required rights. If more than one portal is needed, buy the rights for the additional capacity. Each portal has a predefined number of page views as well as logins.

Power Pages Licensing

Plan Authenticated Users Anonymous
Commitment $2 per user/month (minimum of 100) Column 3 Value
Pay-As-You-Go  .30/user per month Column 3 Value 2

Features evaluation

  Authenticated Users Anonymous
 Prebuilt Templates Availability X X
Security based on Roles X X
Storage and management of data Right to use all the entities in Dataverse X
Rights to Authentication providers X X
Content delivery network X X
Dataverse 2GB capacity and additional 16GB File 500 MB capacity and additional 4GB File

7. Power Automate Licensing

For Power Automate, the scenario would be similar to the Power Apps where you need supplementary benefits than the standard license rights available with Microsoft 365. To gain more capacity, premium connectors, and higher data limits, licensing for the Power Automate can be purchased additionally.

1. Power Automate Pay-As-You-Go license or Per Consumption license
The latest option in Power Automate licensing is Pay-As-You-Go which is introduced to link the gap amongst per user licenses and per flow licenses. If your business needs flows with premium connectors but are used occasionally, this is the perfect fit. Desktop flow attended, Desktop flow unattended and cloud flow are three deployment models that are available. Desktop flow unattended will cost you $3/run or Cloud flow or Desktop flow attended will cost you $0.6/run.

2. Power Automate Per User Licensing
Depending on their requirements, individual users can build an unlimited flow that also included premium connectors. To activate the flow, the license is a must, be it either on the host or server side. Both users should be licensed exclusively. For a month, the cost would be $15 per user.

3. Power Automate with Attended RPA per user license
User Power Automate per user with Attended RPA if attended RPA is mandatory. It offers a single bot at a time. The license price is $40 per user a month and incorporates 5,000 AI Builder service credits.

4. Power Automate unattended bot RPA
When the client necessities call for running bots in a virtual machine, they should opt for this license. It permits the running of an unlimited bots on one specific machine. The cost is $150 per year.

5. Power Automate per Flow plan
When a ‘service account’ manages flow as a representative of all users, an unlimited number of users can use a scenario or flow simultaneously. The minimum prerequisite is 5 flow purchases. It would come to $100 per flow/month.

8. Power Virtual Agents

PVA or Power Virtual Agents are incorporated with the license of Microsoft 365 except Dataverse for Teams application. Power Virtual License has two options:

1. Power Virtual Agents capacity pricing
To build and sustain external or internal bots, the license price is $1000 per month which consists of 2000 sessions.

2. Power Virtual Agents for Teams
The cost for this license is zero but has restricted capabilities. Avail 2000 sessions per tenant/month.

9. Dynamics 365 usage rights

If your business has already acquired the license for Dynamics 365, user rights for Power Apps and Power Automate are included as a bundle. Without buying any further licenses, users can develop applications as well as complex detailed flows. They can even install a portal as far as apps are built within the same context of the Dynamics application and situated in a similar ecosystem.


If your business is just rising, it could be frustrating to understand the complexity of the Microsoft Power Platform. The crucial thing to learn is what your business requires and select the right features for it. We, at DynaTech Systems, are ardent admirers of Power apps. We understand all the nuances of the Power Platform Licensing. This article is designed to help in simplifying the process. However, if you are still in dilemma, feel free to reach us at DynaTech experts are always around to help!

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