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Level 3 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.

Level 3 Contributor

Are there any partners or Microsoft that can confirm that my calculations and conclusions are correct?  Comments would also be welcome on the changes.

Visitor 1

Hi Gavin,


Your playback and illustration is exactly my understanding.  I think the minimum 30 is restrictive but I understand clearly that Microsoft have a minimum cost of provision.  What I may have thought is that you could buy a smaller number if there are already a number of D365 CE licenses in the tenant.


Just a thought, as your scenario is based on just updating 2 custom entities, and assuming these users are not creating or updating Accounts, could this be a good use case for 'light users' on Team Member licenses, accessing a Model Driven App within your existing D365 setup?  A simple sitemap for these users with simple forms, admittedly this isn't a canvas app with the pixel point design but it's available via the D365 app and has simple, clean navigation.


Ideally though you'd not have to consider that option.



Level 3 Contributor

Thanks Chris and all makes sense.  We did consider a model-driven app using Team Members but the customer specifically wanted pixel point design with an 'idiot proof' canvas app.  That's exactly what they got for £5.30 pupm.  I'm just not looking forward to telling them that their costs are now going up anywhere between 400% and 700%.  It's a real shame because this customer has completely bought into PowerApps and has plans for another 3 apps.  I doubt they'll want any more now.


paging @Chris huntingford

Level 3 Contributor

Thanks Rob. I don't think it paged in the correct Chris.


good spot

will mail him directly