Updated October 2026. Written by Power Platform MS.
The short answer
For internal business applications, such as approvals, case tracking, inspections, requests and reporting, in an organisation that already uses Microsoft 365, Power Platform is usually faster and cheaper to build and to run. For products you sell, public services with very high traffic or systems that need unusual performance or complete design control, custom development is usually the better fit.
Many good solutions use both: Power Platform for the business process, with a small custom component where it earns its place.
Side-by-side comparison
| Factor | Power Platform | Custom development |
|---|---|---|
| Time to a working version | Often weeks. A first version in about two weeks is common for a focused app. | Usually months, because hosting, authentication, data and UI are built from scratch. |
| Main cost drivers | Build time plus Microsoft licences for users of premium features. | A development team's time, plus hosting, security testing and ongoing maintenance. |
| Hosting and patching | Run by Microsoft inside your tenant. | Your responsibility or your supplier's, for the life of the system. |
| Identity and security | Uses your existing Entra ID, conditional access and DLP policies. | Has to be designed, built and tested for each system. |
| Integration | Hundreds of ready-made connectors, plus custom connectors for APIs. | Anything is possible, but every integration is written and maintained. |
| User interface control | Good, within the platform's patterns. Code apps add more freedom. | Complete control over every pixel and interaction. |
| Very high volume or real-time workloads | Has limits on requests and data volumes that need designing around. | Can be engineered for extreme scale, at a cost. |
| Who can maintain it | A wider pool of people, including trained staff for small changes. | Developers with the specific stack used. |
Thinking about cost properly
Comparing build quotes alone is misleading. Look at the total over three to five years:
- Build: Power Platform builds are usually smaller because hosting, sign-in, security and much of the interface already exist. As a guide, our published packages start from £1,750 for an automation and from £6,500 for a spreadsheet-to-app build.
- Licences: standard features are included in many Microsoft 365 plans, while Dataverse and premium connectors need Power Apps or Power Automate premium licences. Microsoft changes pricing, so check current Microsoft pricing for your user numbers.
- Running costs: custom systems need hosting, monitoring, security patching and dependency upgrades every year. With Power Platform, Microsoft runs the platform.
- Change: the cost of the tenth change matters more than the first. Low-code changes are typically quicker to make and test.
For a small number of users, custom development can sometimes be cheaper on licences. For a large number of occasional users, per-user licensing can add up. A licensing review answers this with your numbers.
When Power Platform fits, and when it does not
A good fit when
- You already use Microsoft 365 and the users are mostly staff
- The process is a business workflow: requests, approvals, cases, inspections, reporting
- You want something working in weeks and improved in small steps
- You want a wider pool of people able to maintain it
Custom development is likely better when
- You are building a product to sell to customers
- You expect very high transaction volumes or real-time processing
- You need complete control of the user experience or offline-first consumer apps
- Most users are outside your organisation and would each need a licence
A simple decision process
- Who are the users? Mostly staff in your Microsoft 365 tenant points to Power Platform. Mostly the public or customers at scale points to custom, or to Power Pages if volumes are moderate.
- What kind of problem is it? A business process points to Power Platform. A differentiated product points to custom.
- How fast do you need it? If the answer is this quarter, Power Platform is usually the realistic option.
- Who will maintain it? If you have no development team, a platform Microsoft runs is a significant advantage.
- What are the hard limits? Check volumes, integration with systems that have no API and any regulatory constraints early, before committing either way.
An honest scoping call should be willing to tell you Power Platform is the wrong tool. If it is, you will hear that on the first call.
See example builds for the kinds of solutions that suit Power Platform well, read about Power Apps development, see the three-year Power Apps vs custom development cost comparison, or browse more side-by-side comparisons.