Microsoft has announced a drastic change to the licensing model for Microsoft PowerApps and Microsoft Flow. If your company is considering using or already uses these tools, you should be aware. The licenses and add on packages bring additional use cases that were previously not possible and open some exciting possibilities.

Our favorite is the new PowerApps Portal. You can read more about it in our blog article, Introducing PowerApps Portals.

New Licensing Model

Microsoft is dropping the PowerApps Plan 1 (P1) and Plan 2 (P2) licenses in favor of per-app/ and per-plan licenses.

Both PowerApps and Flow are changing to per-app / per-flow plans or per-user plans. These plans include the full capabilities of the products and are intended as standalone additions to your 365 subscriptions. These plans replace the previous PowerApps Plan 1 and Plan 2.

Here are the commercial rates

  • PowerApps per-app plans is $10 per user/app/month and per-user plan is $40 per user/month. Prices are in USD.
  • Flow is licensed in 2 ways: there is a per-flow plan of $500 per flow/month (minimum purchase of 5 flows) for the business and a Flow plan per-user at $15 per user/month. Prices are in USD.

A basic version of both PowerApps and Flow will continue to be available to new Office 365 and Microsoft 365 licenses and grandfathered with existing licenses. However, it is basic and excludes premium features, you can read more below.

Also, Microsoft created a licensing guide report detailing the changes, which can be found here.

PowerApps and Flow are still included with Office 365

A limited functionality version of PowerApps and Flow will continue to be available after October 1st and functions similarly to the basic version provided previously. Some limitations include:

  • No premium connectors
  • No on-premise gateway
  • No model-driven apps
  • No Common Data Service access
  • No custom portals

If you need more functionality, please see the per-app/per-flow and per-user plans details below. If you have Dynamics 365 or Dynamics 365 enterprise, we recommended reading included features in Microsoft’s licensing guide here.

PowerApps Per App Plan

The PowerApps per-app plan allows users to run two custom apps and access one custom portal. This plan is an entry point price model. Microsoft intends it to be a lead-in plan to allow for use case exploration and pilots before adopting the more robust per-user plan.

A nice addition to this plan is the inclusion of the Common Data Service, Model-driven apps, and premium connectors. Under the previous licensing model, these features required the PowerApps Plan 1 license for users and Plan 2 license for citizen developers. It seems Microsoft is flattening the feature sprawl into a single content package and charging for access.

One new restriction is the separation of Flow from PowerApps. While the per-app plan does include flows, those flows must be in the context of the app and cannot be triggered outside of the corresponding PowerApp.

Note that non-premium flows are still available via Office 365 licenses.

PowerApps Per User Plan

The per-user plan allows users to run unlimited custom applications and all PowerApps capabilities are available.

Flow Per Business Process (per flow) Plan

The per-flow plan is distinct in that it allows unlimited users access to the flows created and runs on a reserve capacity model. The per-flow model should be leveraged for general purpose workflow and business process automation where many users consume specific use cases.

All top-level flows under this model must be licensed but “child” flows do not require additional licensing.

Each SKU contains 5 units and 15,000 daily API requests per licensed flow and there is a special license to add capacity for an existing Flow that is separate to the per-flow plan itself.

Flow Per User Plan

Like the PowerApps per-user plan, the Flow per-user plan allows licensed users to create and run unlimited workflows and business processes. This plan is intended to support broad adoption of automation. Admins will not need to track and manage the amount of flows created for users under this plan, but there are still limits on usage at 5,000 API requests per day.

Useful Links

PowerApps and Microsoft Flow licensing FAQs
https://docs.microsoft.com/en-us/power-platform/admin/powerapps-flow-licensing-faq

Microsoft PowerApps and Flow Licensing Guide
https://go.microsoft.com/fwlink/?linkid=2085130

Microsoft PowerApps and Flow use rights for Office 365 Applications
https://go.microsoft.com/fwlink/?linkid=2085130

New licensing options for PowerApps and Flow standalone paid plans
https://powerapps.microsoft.com/en-us/blog/new-licensing-options-for-powerapps-and-flow/

Microsoft Flow pricing
https://flow.microsoft.com/en-us/pricing/

Microsoft PowerApps pricing
https://powerapps.microsoft.com/en-us/pricing/

Contact a powerapps expert today