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Power Platform licensing advice, UKPower Platform licensing, explained in plain English.

Find out what Microsoft 365 already gives you, what needs a premium licence, and which model costs least for the way your team works. We do not resell licences or take a margin.

The short version

What is included, and what is not.

This is a simplified guide at the time of writing (October 2026). Microsoft changes licensing terms and prices regularly, so always check current Microsoft pricing before you buy.

Included with most Microsoft 365 plans

  • Canvas apps and cloud flows that use standard connectors (SharePoint, Outlook, Teams, Excel, OneDrive and similar)
  • Using apps and flows within the context of Microsoft 365
  • Dataverse for Teams for lightweight apps inside Teams
  • Using published agents inside Microsoft 365 Copilot, depending on your Copilot licensing

Needs a standalone or pay-as-you-go licence

  • Premium connectors such as SQL Server, HTTP, Dataverse and most third-party services
  • Custom connectors to your own APIs
  • Model-driven apps and full Dataverse
  • Desktop flows (RPA) running unattended
  • Copilot Studio agents for staff without suitable Copilot licences, or for customers

Licensing models

Per user, per app or pay-as-you-go?

Most organisations end up with a mix. The right answer depends on who uses what, and how often.

Per user

Best when

One person uses several premium apps or builds many premium flows.

Watch out

Easy to over-buy. Only the people who actually use premium features need it.

Per app

Best when

A defined group uses one or two premium apps, for example a field team using an inspections app.

Watch out

Costs add up if the same person ends up using several apps.

Pay-as-you-go

Best when

Usage is occasional or unpredictable, such as a quarterly review app or a pilot.

Watch out

Billed through an Azure subscription per active user, so set a budget alert.

Per flow (process)

Best when

A single high-volume or unattended automation that many people benefit from.

Watch out

Licenses the flow, not the people. Check the current minimums and terms.

Dataverse capacity

Database, file and log storage are measured separately. Your tenant gets a base allowance plus extra for some licences. Audit logs, attachments and flow history are the usual culprits when it runs out.

Copilot Studio capacity

Agents consume Copilot Credits per response, at rates that vary by response type. Capacity comes from prepaid packs or pay-as-you-go. Estimate usage from a pilot before committing.

Decision table

Which licence fits which situation?

A starting point, not a final answer. Real tenants have edge cases.

SituationMicrosoft 365Per appPer userPay-as-you-go
SharePoint list app with standard connectors
Approval flow across Outlook, Teams and SharePoint
One premium app used daily by a defined team
Managers using four or more premium apps
Premium app used a few times a year
Pilot or proof of value with uncertain uptake

Get a rough number in two minutes

Enter your users and apps into the free licensing calculator for an indicative comparison.

Open the licensing calculator

Common overspend traps

Where Power Platform budgets usually leak.

We see the same patterns repeatedly. Most are fixed with a licence reassignment or a small design change, not a new contract.

Buying premium licences for everyone when only a few people use premium apps.
Paying a per-user licence for someone who only ever uses one app.
Licences still assigned to leavers or to people who stopped using an app months ago.
One premium connector in a flow makes the whole flow premium, often by accident.
Dataverse storage filling up with audit logs, attachments and old flow run history.
Buying Copilot Studio capacity before anyone has measured how many messages an agent uses.
Licensing every member of staff for Microsoft 365 Copilot before running a pilot.

Pricing

A Licensing Review, from £395.

Three working days. A written recommendation for your tenant, based on real usage rather than guesses.

No licence reselling, no margin

You buy licences from Microsoft or your existing reseller. We have nothing to gain from you buying more.

The fee for a Licensing Review, Health Check or Automation Sprint is credited in full against a build that follows within 60 days.

All prices exclude VAT. Final fixed price confirmed in writing after a free scoping call.

Low-risk first step

Licensing Review

A plain-English review of what you pay Microsoft for Power Platform and what you actually need.

from£395

3 working days

  • Review of current Power Apps, Power Automate and Copilot Studio licences
  • Per-app vs per-user vs pay-as-you-go comparison for your usage
  • Premium connector and Dataverse capacity check
  • Written recommendation with estimated annual saving or cost

How it works

From call to written recommendation.

01

This week

Free 20-minute call

You explain the problem. You get an honest view on whether Power Platform fits and a rough budget range.

02

Within 3 working days

Scope and fixed price

A one-page scope with deliverables, licensing implications, timeline and a fixed price in GBP.

03

Usually 1 to 6 weeks

Build in weekly sprints

Working software every week, demoed live in your tenant. You steer as it takes shape.

04

Go-live

Handover and warranty

Managed solution, documentation and a recorded walkthrough, plus a 30-day defect warranty.

FAQ

Licensing questions

General guidance only. Microsoft licensing terms change, so confirm against current Microsoft documentation.

Do we already have Power Apps and Power Automate with Microsoft 365?

Most Microsoft 365 business and enterprise plans include the right to build and use canvas apps and cloud flows with standard connectors such as SharePoint, Outlook and Teams. Premium connectors, custom connectors and full Dataverse need extra licences. Check your exact plan against Microsoft's current licensing guide.

What makes a connector premium?

Microsoft labels each connector as standard or premium. Dataverse, SQL Server, HTTP, custom connectors and many third-party services are premium. If an app or flow uses even one premium connector, everyone who uses it needs a premium licence or a pay-as-you-go plan.

How much do Power Apps and Power Automate licences cost?

Microsoft publishes list prices per user or per app per month and changes them from time to time, and your reseller or agreement may differ. Check current Microsoft pricing before you budget. The Licensing Review gives you figures for your own usage at the time of the review.

How is Copilot Studio licensed?

At the time of writing (October 2026), Copilot Studio is mainly licensed by capacity: prepaid packs of Copilot Credits or pay-as-you-go metering, with different rates for different kinds of response. Staff with Microsoft 365 Copilot licences may be able to use some agents without extra capacity. Microsoft changes these rules often, so we check against the latest guidance.

What is Dataverse capacity and why does it matter?

Dataverse storage is split into database, file and log capacity. Your tenant gets a base amount plus extra for some licences. Audit logs, attachments and old system jobs can quietly use it up, and additional capacity is charged. We check usage and suggest clean-up before you buy more.

Do you sell licences or take a commission?

No. We do not resell licences and take no margin or referral fee. You buy from Microsoft or your existing reseller. That means our advice has no incentive to push you towards more licences.

What does the Licensing Review include?

A review of your current Power Apps, Power Automate and Copilot Studio licences against real usage, a per-app vs per-user vs pay-as-you-go comparison, a premium connector and Dataverse capacity check, and a written recommendation with an estimated annual saving or cost.

Pay Microsoft for what you use, not what you were sold.

A free 20-minute call to talk through your licences. If a quick answer is all you need, you will get it on the call.