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Level 2 Contributor

New PowerApps Licensing Plans & Costs

I'd just like to gauge opinion from the community with reference to the new PowerApps licensing plans being launched in Oct 19.


The current plans are P1 (for Canvas apps) at £5.30 pupm, and P2 (for model-driven apps) at £30.20 pupm. We have a customer that uses one canvas app with 5 users.  They are therefore currently paying £26.50 (£5.30 x 5) per month for this. This customer also has many other Dynamics 365 licences, however, these 5 users don't have D365 licences, but they write data into 2 custom entities using the P1 licence and the canvas app.


The new pricing model options from Oct 19 are:


1) PowerApps per app plan - $10 per user per app per month.  So for the 5 users for our customer, that would equate to about £37.50 per month ($10 x 5). So even though this would be a 42% cost increase, it's only about £10 more per month.  However, for this plan, there is a minimum of 30 users.  So all of a sudden, our customer will have to pay a minimum of $300 per month, for what is currently only costing them £26.50.  This equates to a 768% cost increase.


2) PowerApps per user plan - $40 per user per month.  So this would cost our customer about £150 per month (5 x $40) which equates to a 466% cost increase.


So essentially the changes mean a cost increase for our customer of between 466% and 768%.  Of course where customers are using canvas apps where they are already licensed for Dynamics 365 this is not an issue as they can still use canvas apps, but for customers that have a handful of P1 licences for some light use of a simple canvas app, this has now priced Microsoft out of the SMB app world due to the minimum of 30 licences required for the per app plan.


Can anyone please clarify my understanding is correct and also your comments on this would be much appreciated.