Power Platform Licensing Made Simple (Beginner’s Guide)

Understanding Microsoft Power Platform licensing can be a little confusing at first—but don’t worry! This quick guide will give you a clear idea of how licensing works, what’s free, what’s paid, and how to choose the right option for your needs.

Why Licensing Matters

Power Platform tools are incredibly powerful—but how you can use them depends on what license you have. Some features are included for free (like in Microsoft 365), while others require separate licenses for more advanced capabilities, connectors, or storage.

Main Power Platform Tools Covered by Licensing

• Power Apps – To build and use apps

• Power Automate – To create and run automated flows

• Power BI – To build and share reports

• Power Pages – To create websites and external portals

• Copilot Studio – To build AI chatbots

• Dataverse – Central data platform used by many of these tools

1.  Free/Included with Microsoft 365 (Good for Basic Needs)

If your organization already has Microsoft 365 (like Office apps, Outlook, SharePoint), you may already have access to basic Power Apps and Power Automate.

What’s included	Limitations
Power Apps to customise SharePoint lists or Teams	No access to premium connectors (like SQL Server, Dataverse, Salesforce)
Power Automate to automate common Office tasks	Limited app sharing, data storage, and advanced automation
Use of standard connectors (e.g., SharePoint, Excel, Outlook)

2. Power Apps Paid Plans

This is great if you're building custom apps with Dataverse, SQL, or other business systems.

Plan	Best For	Key Features
Power Apps Per App Plan	Users who need access to just 1 or 2 apps	Use 1 custom app and 1 portal per user; access to Dataverse and premium connectors
Power Apps Per User Plan	Users who need to use multiple apps	Unlimited apps and portals; premium connectors; more storage options

2.1 Power Automate Plans

Plan	Best For	Key Features
Power Automate Per User	Individuals running personal flows	Unlimited flows using standard and premium connectors
Power Automate Per Flow	Teams/Organisations sharing flows	Run flows without tying them to a specific user
Power Automate Hosted RPA	Advanced automation using bots	Add unattended RPA (Robotic Process Automation) for desktop automation

2.2 Power BI Licensing

License Type	Usage	Features
Free	Personal reporting only	Create reports, view in Power BI Desktop
Power BI Pro	Share reports within your organization	Collaboration, publishing to workspace, metrics, etc.
Power BI Premium	Enterprise-level features	Advanced AI, paginated reports, large dataset support

2.3 Power Pages Licensing

Power Pages is metered by usage – not per user. You pay based on:

• Number of authenticated users (logged-in)

• Number of anonymous users (public visitors)

• Additional Dataverse storage if needed

This is ideal for external-facing portals, registration systems, and customer interaction apps.

2.4 Copilot Studio Licensing (formerly Power Virtual Agents)

Licensing is session-based:

• Each session = one complete conversation with a bot

• Included in Dynamics 365 and available as an add-on

• For enterprise bots, a separate Copilot Studio plan is recommended

2.5 Premium Connectors & Dataverse

You’ll need a paid license (Power Apps or Power Automate) to access:

• Dataverse

• SQL Server

• Salesforce

• Azure DevOps

• Custom connectors

• And more…

Microsoft frequently updates licensing, so always check the official Microsoft Licensing Guide https://learn.microsoft.com/en-us/power-platform/admin/pricing-billing-skus

You can mix and match licenses depending on who needs what in your organization

Start with free plans or trials to explore before scaling

Below is the Power Platform Licensing Cheat Sheet.

Note: Please refer to the official guide for the latest price info

License Type	Approx. Cost (USD/month)	Description	Official Link
Power Apps (Per App Plan)	$5 per user/app	Access to one custom app and one portal	https://learn.microsoft.com/en-us/power-platform/admin/pricing-billing-skus#power-apps
Power Apps (Per User Plan)	$20 per user	Unlimited apps and portals with premium connectors	https://learn.microsoft.com/en-us/power-platform/admin/pricing-billing-skus#power-apps
Power Automate (Per User Plan)	$15 per user	Run unlimited flows with standard and premium connectors	https://learn.microsoft.com/en-us/power-platform/admin/pricing-billing-skus#power-automate
Power Automate (Per Flow Plan)	$100 per flow	Run flows that are not tied to a specific user	https://learn.microsoft.com/en-us/power-platform/admin/pricing-billing-skus#power-automate
Power Automate (Hosted RPA Plan)	$150 per bot	Automate desktop apps using unattended RPA bots	https://learn.microsoft.com/en-us/power-platform/admin/pricing-billing-skus#power-automate
Power BI (Free)	Free	Personal report creation only	https://powerbi.microsoft.com/pricing/
Power BI Pro	$10 per user	Collaborate and share reports within organization	https://powerbi.microsoft.com/pricing/
Power BI Premium (Per User)	$20 per user	Advanced analytics features with premium access	https://powerbi.microsoft.com/pricing/
Power BI Premium (Capacity)	Starting at $4,995	Enterprise-wide usage, large data models	https://powerbi.microsoft.com/pricing/
Power Pages (Authenticated Users)	$200 for 100 users	Metered pricing for secure, logged-in users	https://learn.microsoft.com/en-us/power-pages/pricing
Power Pages (Anonymous Users)	$75 for 500 users	Metered pricing for public-facing anonymous users	https://learn.microsoft.com/en-us/power-pages/pricing
Copilot Studio (Power Virtual Agents)	Included in Dynamics 365 / Custom plans	License chatbot usage per conversation/session model	https://learn.microsoft.com/en-us/microsoft-copilot-studio/pricing