PP201 – Microsoft Power Platform Licensing Made Simple

Overview

Microsoft Power Platform is a suite of tools that enables businesses to build apps, automate workflows, create AI-powered assistants, and develop secure, data-driven websites. This guide explains how to licence the main products—Power Apps, Power Automate, Copilot Studio, and Power Pages—as well as add-ons like Dataverse and AI Builder.

How to Buy

• Flexible Purchasing Options:
  Licences can be acquired through various channels such as Enterprise Agreements, direct purchase from Microsoft, government and education programmes, or via Microsoft Partners.
• Licence Types:
  Choose from subscription-based licences, add-on capacity licences, or pay‑as‑you‑go metres, ensuring you only pay for what you use.

Key Products & Licence Options

Power Apps

• Power Apps Premium:
  A per‑user licence that enables employees to run unlimited customised applications and access unlimited websites.
• Power Apps per App:
  Ideal for organisations that need to licence access to specific apps or websites—multiple licences can be stacked if a user requires access to more than one.
• Pay-As-You-Go:
  Charges are based on the number of active users accessing a given app, providing cost‑effective flexibility.

Power Automate

• Power Automate Premium:
  A per‑user licence that permits the creation of unlimited cloud flows (automated, instant, scheduled) and desktop flows (attended RPA).
• Per Flow/Process Licencing:
  Licences specific business processes or automation bots—including options for unattended robotic process automation (RPA) with additional hosted or unattended RPA add‑ons.
• Usage in Context:
  If flows are integrated directly within Power Apps or Dynamics 365, the licencing requirements can be more limited.

Copilot Studio

• Conversational AI Platform:
  This tool helps you build and customise AI assistants (copilots) using natural language.
• Tenant Licencing:
  Licences are based on a “billed messages” model—each request to the copilot (whether a simple command or a more complex generative AI response) consumes a set number of messages.

Power Pages

• User-Based Licencing:
  Licences are determined by the number of users accessing your websites—differentiating between authenticated (logged in) users and anonymous visitors.
• Capacity Packs & Metres:
  You can purchase capacity packs for predictable monthly usage or use a pay‑as‑you‑go model to pay for actual usage.

Add‑Ons and Capacity

Dataverse

• Built-In Capacity:
  Every tenant receives a default amount of database, file, and log capacity shared across Power Platform applications.
• Expansion Options:
  Additional capacity can be purchased via add‑on packs if your data requirements exceed the default limits.

AI Builder

• Service Credits Model:
  AI features (such as document processing or object detection) use “service credits” that are consumed at different rates per operation.
• Capacity Packs:
  Purchase additional credits in capacity packs to support higher usage across your apps and processes.

Additional Considerations

• Licencing Compliance:
  Every user or device that accesses Power Platform services (even indirectly through integrations or multiplexed connections) must be properly licenced.
• External Users:
  Non‑employees (external users) must also be licenced based on their type of access—whether as authenticated users for secure sites or anonymous users for public-facing sites.
• Monitoring and Enforcement:
  Licence capacity (for Dataverse, AI Builder, etc.) is monitored monthly. Unused capacity does not roll over, so planning your requirements is essential.
• Support and Development:
  Free trials and a developer plan are available, along with a range of support options to help you deploy and scale your solutions.

Final Note

Always refer to the latest version of the licencing guide or consult with a Microsoft representative or certified partner to ensure you have the most current and tailored licencing solution for your organisation.

Source: Power Platform Licensing Guide February 2024

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