Complete guide to Power Platform licensing in the UK. Understand costs, options, and choose the right plan for your organisation.
Understanding Power Platform licensing is crucial for UK businesses looking to implement Microsoft's low-code platform. With various licensing options available, choosing the right plan can significantly impact your budget and access to features.
Power Platform Licensing Overview
Power Platform offers several licensing models designed to meet different business needs and usage patterns.
Key Licensing Models:
- Per-user licensing for individual access
- Per-app licensing for specific applications
- Capacity-based licensing for data and AI features
- Bundled licensing with Microsoft 365
Per-User Licensing Options
Power Apps Per User: £8.40 per user/month
- Full Power Apps capabilities
- Dataverse database access
- Premium connectors
- AI Builder features
Power Automate Per User: £8.40 per user/month
- Unlimited cloud flows
- Premium connectors
- Business process flows
- AI Builder integration
Power BI Pro: £8.40 per user/month
- Advanced analytics
- Data modelling
- Sharing and collaboration
- Premium features
Per-App Licensing
Power Apps Per App Plan: £3.36 per user/month per app
What's Included:
- Access to one Power App
- 2GB Dataverse database capacity
- Standard connectors
- Basic AI Builder features
Best For:
- Organisations with limited app usage
- Specific departmental applications
- Pilot projects and testing
- Cost-conscious implementations
Microsoft 365 Integration
Microsoft 365 E5: Includes Power Apps, Power Automate, and Power BI Pro licenses for all users.
- Full Power Platform access
- Premium connectors
- Advanced security features
- AI Builder capabilities
Microsoft 365 E3: Includes basic Power Platform features with limited premium capabilities.
- Basic Power Apps access
- Standard connectors
- Limited AI features
- Basic automation
Cost Optimization Strategies
Cost Optimization Tips:
- Start with per-app licensing for pilot projects
- Use Microsoft 365 E5 for comprehensive access
- Implement user access reviews and cleanup
- Monitor usage and adjust licensing accordingly
UK Business Licensing Example
Case Study: Mid-Size Manufacturing Company
Initial Approach:
- 50 Power Apps per-user licenses: £420/month
- 50 Power Automate per-user licenses: £420/month
- 50 Power BI Pro licenses: £420/month
- Total: £1,260/month
Optimized Approach:
- Microsoft 365 E5 for all users: £1,000/month
- Includes full Power Platform access
- Additional security and compliance features
- Total: £1,000/month (21% savings)
Key Takeaways
- Microsoft 365 E5 often provides the best value for comprehensive Power Platform access
- Per-app licensing is ideal for limited usage scenarios
- Regular usage monitoring helps optimize licensing costs
- Consider your existing Microsoft 365 investment when planning
- Start small and scale licensing as usage grows
