One of the most common impressions that we gathered so far of Power Platform to be used as Rapid Development (RAD) framework is that, it comes free with Microsoft 365 (a.k.a. M365 and formerly Office 365) plans. At least the developers, architects and business users (power users in the world of Power Platform) of M365 got that flavor because Microsoft had let us enjoy its easy availability with the M365 plans. We were able to connect with both Microsoft and non-Microsoft data sources in cloud and on-premise environments alike with a range of in-built connectors and/or using HTTP connectors, developing custom connectors.
But with the inception of the premium plans which were initially P1 and P2, we found a green box, like
started appearing beside many connectors. Then we came to know from Microsoft's release notes that unlike many connectors which used to come free with the M365 plans earlier, then became paid. That means organizations had to buy additional licenses to use them.
Then as the technology kept evolving, there were more restrictions being introduced and users/developers started getting "API limit error". This is because Microsoft also introduced API limits. That means operations which use connectors, call APIs, initializing variables with values, flow calls etc. all account for the API limits that Microsoft introduced. This means even if you buy licenses, there is more to it. So how do you configure scheduled flows which run unattended, keep monitoring your sites and environments? Jobs are one of the prevalent requirements, these days, when we keep modernizing and automating.
Isn't that all a jigsaw puzzle? Well, it is, if your knowledge purview of Power Platform licensing does not cover every nook of it. I have seen clients walking out of signed contracts calling Power Platform a costly affair, either because of their ignorance of how it is priced or because of inadequate consulting done by the vendors who propose to modernize their workspace using Power Platform. In most cases it is the latter.
This is why, you need a rock solid understanding of how licensing works to provide the most optimal solution around Power Platform, to make the fullest use of this RAD framework from Microsoft. Only then will you be able to convince your client that Power Platform indeed helps in cutting down budget and one of the best of its kind in the industry from every aspect.
This article aims at covering most of it with the help of some very apt case studies that summarizes and simplifies Power Platform licensing for you.
Out Of Scope
Prerequisites
- PowerApps plans - P1 and P2 plans (discussed above) are now replaced by Per User and Per App plans. See https://powerapps.microsoft.com/en-us/pricing/ to learn more.
- Power Automate plans - Visit https://flow.microsoft.com/en-us/pricing/ to know about the pricing options.
- API limits - See https://docs.microsoft.com/en-us/power-platform/admin/api-request-limits-allocations#request-limits-based-on-user-licenses to understand the API limits.
- Capacity Add-ons - See https://github.com/MicrosoftDocs/power-platform/blob/main/power-platform/admin/capacity-add-on.md to learn more.
Decision Making
- How many flows will be running in your organization, approximately?
- What type of flows are they? Are they automated or scheduled or instant?
- How many scheduled flows do you need to run, approximately? How often will they run?
- How many automated and instant cloud flows do you need? How many users will be using them?
- What all data sources you want to connect with? Are they all native M365 services or would you be needing Premium connectors?
- Do they all have built-in connectors available in Power Platform?
- What type of users will be accessing your environment? Are they internal or external to your organization or is it a combination of both?
- Do you need to build a portal?
- Do we need to worry about large number of API calls?
Plan Selection Matrix
| Sl No | Requirement | Plan Suggested |
|---|---|---|
| 1. | Native Data Sources Only? | M365 E3/E5 Plan |
| 2. | PowerApp Only - At least one premium connector used? | PowerApps Per User/Per App Plan |
| 3. | Large no. of users and limited no. of apps? | PowerApps Per App Plan |
| 4. | Large no. of apps, but limited no. of API calls? | PowerApps Per User Plan |
| 5. | Estimated high no. of API requests/flow calls from apps? | App Passes under Capacity Add-ons |
| 7. | Run Scheduled Flows Only? No limit to API requests. | Power Automate Per User Plan assigned to a service account |
| 9. | Run Instant/Automated Flows with potentially high no. of API requests? | Power Automate Per User Plan |
| 10. | Run limited no. of shared flows with no limit to users consuming them and no limit to API requests? | Power Automate Per Flow Plan |
Case Studies
1. I have 5000 internal users, who will potentially use apps to be developed such that data operations will happen on M365 workloads only like SharePoint Online, OneDrive For Business, Microsoft (MS) Teams and Planner.
- 1 M365 enterprise plan like E3 or E5 for every user
2. I have a hybrid deployment, that uses M365 for workspace modernization. I have 5000 internal users, who will potentially use apps to be developed such that data operations will happen on M365 workloads like SharePoint Online, OneDrive For Business, Microsoft (MS) Teams and Planner. In addition, there will be 2 jobs that will import data from an on-prem SQL Server instance to SharePoint Online, that will eventually be visualized as Power BI dashboards and charts. My SQL Server on-prem database size is ever-growing.
- Data import happens in M365 from on-prem SQL Server. So we need to configure data gateway, which is only available with premium plans of PowerApps/Power Automate.
- Data import to SharePoint Online is via jobs. This means it is a scheduled sync and NOT real-time. Therefore, 2 scheduled flows should suffice.
- 5000 internal users will be using app, that reads data from native M365 workloads. So they can very well be licensed by the standard M365 enterprise plans. (see Sl. # 1 in the Plan Selection Matrix)
- Scheduled flows' calls of SQL Server connector will never exceed 5000 mark stipulated for a PowerApps Per User Plan (See "Prerequisites" section, above)
- Ever-increasing database size is also not a matter of concern as we are bringing in data to SharePoint Online, an integral component with M365 plans.
- 5000 M365 E3/E5 plans
- 1 PowerApps Per User Plan for a service account for running the 2 flows
3. I need to develop an app that will use Microsoft Azure cognitive services like Conversational AI built on top of a curated knowledge base. The app needs to be deployed to MS Teams as a channel app for members of the channel to use.
- PowerApps Per User Plan for all the members of the channel.
4. I am an admin who wants to loop through all SharePoint Online sites in my tenant and generate a permission report.
- Power Automate Per User Plan to be assigned to a service account, that will run the scheduled flow.
5. I am a site admin who wants to be notified whenever there are documents uploaded or modified to a document library with some predefined criteria or pattern, due to security reasons. I have 3,000+ employees in my organization who do frequent uploads and changes in this library.
- 1 PowerApps Per User Plan assigned to a service account or to the admin's account will suffice
6. I want to create a portal that will be accessed by 5,000+ external users who are authenticated by Azure AD. The portal will have canvas apps embedded that will also be externally faced.
- Portals with login capacity is the required plan here. This gives 100 login session per month. So an estimated 51 plans should suffice for this requirement. (Visit PowerApps pricing page, referred under "Prerequisites" section.)




















