Back in November 2021, Microsoft made Power Apps available under the pay-as-you-go (PAYG) model, alongside the traditional Per User/Per App options. This PAYG model has gained popularity. It ensures simple rightsizing for Power Apps environments. Here, I’ll explore the PAYG model and compare it to the traditional models available. This will help you to decide the option best suited for you.
When they’re created, Apps are assigned to a Power Platform environment. These environments act like a container to separate apps into relevant business areas for security reasons or management purposes. To take advantage of the PAYG model, you connect the relevant Power Apps environment to an Azure subscription. You then pay based on metered usage for all apps within this environment.
The PAYG model ensures you only pay when a user runs an app – rather than the alternative model of allocating licenses beforehand and seeing them consumed based on apps being shared, rather than run. You simply pay $10 per “active” user, per app, per month. Microsoft considers an active user as someone who opens an app and/or a portal at least once a month.
The Dataverse is where you can store and manage data used by Power Apps (as well as Power Pages, Power Automate, and Power Virtual Agents). Apps, flows ,or websites using Dataverse will consume various quantities of:
For the Power Apps PAYG model, you get 1GB of database storage and 1GB of log storage included with each linked environment. Use over the free amount is charged at:
Outside of the PAYG model, there are two alternative methods of licensing Power Apps:
1: Premium Per User Licenses: These licenses are assigned to specific users via the Microsoft 365 Admin Center. They allow those users access to any number of apps, in any number of environments. Customers receive a default Dataverse capacity, but you can accrue more capacity by purchasing additional licenses.
Note: Premium Per User licenses can be used in conjunction with PAYG environments, as they’re automatically excluded from the metering.
2: Per App Licenses: These licenses are for specific apps and are assigned to specific Power Platform environments. When a user is shared an app within that environment, a Per App license is automatically assigned to them. Users may need to “stack” per app licenses, for apps that reside across multiple environments. Customers receive a default Dataverse capacity, but you can accrue more capacity by purchasing additional licenses.
Note: PAYG environments disregard Per App Licenses.
In choosing between the traditional Power Apps licensing and the pay-as-you-go Azure model, organisations must consider their usage patterns, budget flexibility, and Dataverse capacity needs.
For organisations with predictable apps usage and a need to control costs, the per App or premium user licensing models might be more suitable. On the other hand, the pay-as-you-go model is ideal for organisations with fluctuating usage patterns or unpredictable workloads.