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Article · Microsoft · Power Platform

Microsoft Power Platform, decoded.

Power Apps, Power Automate, Power BI, and Power Pages each carry their own metric, their own premium tier, and their own connector tax. The buyer side question is per user versus per app, not which name on the marketing slide.

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Power Platform is four products under one brand. Power Apps for low code apps, Power Automate for workflows, Power BI for analytics, and Power Pages for external portals. Each licenses separately. Each carries a standard tier and a premium tier. The premium connector list decides which tier a deployment lands on.

The buyer side discipline is to map every app, flow, report, and portal against the connector list before signing. The wrong order is to accept the Power Apps per user bundle on the EA, then discover half the apps need premium connectors that are not included.

Read this article alongside the Microsoft knowledge hub, the Microsoft advisory practice, the Power Platform licensing guide, the EA renewal playbook, the enterprise licensing reference, and the Vendor Shield subscription.

Key Takeaways

What a CIO needs to know in 90 seconds

  • Four products, four metrics. Power Apps per app or per user. Automate per user or per flow. BI per user or premium capacity. Pages per site authenticated user.
  • Premium connectors decide the tier. SQL, SAP, Oracle, Salesforce, Azure DevOps connectors require the premium license.
  • The standard connectors are free with Microsoft 365. SharePoint, Teams, Outlook, OneDrive all sit in the standard list.
  • AI Builder consumes credits. 500,000 credits sit inside the premium tier. Document processing burns fast.
  • Per app sounds cheap, scales high. The per app license caps a single app per user. Five apps per user equals five licenses.
  • Power BI Premium per capacity wins at 250 plus users. Below 250 users the per user plan is cheaper.
  • The EA bundle hides the premium gap. Default M365 E3 and E5 do not include premium Power Platform.

Component map

Each Power Platform component sits inside its own SKU family. The names look similar, the metric definitions diverge.

Power Platform components at a glance

ComponentStandard tierPremium tierPremium per user list
Power AppsBundled with M365Power Apps Premium$20 per user per month
Power AutomateStandard flows in M365Premium per user or per flow$15 per user per month
Power BIPower BI ProPower BI Premium per user or per capacity$24 per user per month
Power PagesLimited preview onlyAuthenticated user or anonymous$200 per 100 authenticated users per month

The component buyers miss

Power Pages used to ship as Dynamics 365 portals. The new license is per authenticated user, billed per hundred users per month. Anonymous users price separately. The portal that replaces a partner extranet can land at six figures annually.

Per user versus per app

Power Apps offers two licensing routes. Per user covers unlimited apps for the named user. Per app covers a single app for the named user. The math flips at three apps per user.

Three rules of thumb

  1. Per app under three apps per user. The math wins when each user touches one or two custom apps.
  2. Per user at three or more apps per user. The premium per user license unlocks unlimited apps, flows, and Dataverse.
  3. Per app plans count uniquely. Two users on the same app equal two per app licenses, not one.

Per user versus per app cost math

ScenarioUsersApps per userCheapest routeAnnual list
One app, broad rollout2,0001Per app$120,000
Three apps, moderate rollout5003Per user$120,000
Five apps, narrow rollout2005Per user$48,000
One app, enterprise wide10,0001Per app$600,000

Premium connectors

The premium connector list is the commercial dividing line. Standard connectors run inside M365 at no extra cost. Premium connectors require a Power Apps Premium or Power Automate Premium license per user touching that connector.

The premium connectors that matter

  • SQL Server. Any on premises SQL connection lands in premium.
  • SAP ERP and BAPI. Premium for every flow or app touching SAP.
  • Oracle Database. Premium for any Oracle DB connection.
  • Salesforce. Premium for read or write to Salesforce.
  • Azure DevOps. Premium for any pipeline or work item flow.
  • On premises data gateway. The gateway itself sits in premium for most production patterns.

The premium tax shapes the Power Platform deployment

An IT team builds twenty Power Apps that read from Sharepoint and write to SQL. The SharePoint side is standard. The SQL side is premium. Every user of every app needs a premium license. The deployment that looked free under M365 lands at $20 per user per month.

The buyer side discipline is to inventory the connector usage before signing the EA. Refactor what is possible. Negotiate the premium count down before commitment.

AI Builder credits

AI Builder runs on a credit pool. The Power Apps Premium and Automate Premium licenses bundle 500,000 credits per tenant per month. Document processing burns 0.20 credits per page. Form processing burns 0.10 credits per page.

Three credit math examples

  • Invoice automation. 50,000 invoices per month at five pages each, two stage processing. 50,000 credits a month. Inside the bundle.
  • Contract review. 10,000 contracts at 50 pages each. 100,000 credits a month. Inside the bundle.
  • Mass document classification. One million documents at five pages each. One million credits. Add on bundle required.

EA bundle decision

Microsoft 365 E3 and E5 include the Power Apps for Office 365 license. The license covers standard connectors and the bundled apps inside Teams. Premium tier sits outside the bundle.

Five EA negotiation moves

  • Premium per user count. Negotiate as a separate SKU with its own discount tier.
  • Per app count. Lock the per app rate at signing, with annual flex up and flex down.
  • AI Builder credits. Negotiate the credit bundle as part of the EA, not as a mid term add on.
  • Power BI Premium per capacity. Capacity SKUs price separately. Negotiate the EM versus P SKU split before signing.
  • True up scope. Confirm Power Platform sits inside or outside the EA true up scope.

Power Platform is the cheapest expensive product on the EA. The standard tier feels free. The premium tier is where the math lives. Inventory the connectors before the renewal, not after.

What to do next

The seven step checklist below is the buyer side starting position for any Power Platform deployment or renewal.

  1. Inventory every app, flow, report, and portal. Count the users on each.
  2. Map the connector list. Standard versus premium for every integration.
  3. Model per user versus per app. The math flips at three apps per user.
  4. Forecast AI Builder credit usage. Document processing and form processing burn fast.
  5. Negotiate premium count at the EA renewal. Separate SKU with annual flex.
  6. Lock Power BI Premium decision. Per user under 250, capacity above.
  7. Engage an independent advisor. Microsoft led Power Platform modeling tilts to higher counts.

Frequently asked questions

What is Microsoft Power Platform?

Microsoft Power Platform is the umbrella brand for four low code products: Power Apps for custom applications, Power Automate for workflows, Power BI for analytics, and Power Pages for external portals. Each product licenses separately with a standard tier bundled in Microsoft 365 and a premium tier sold as a separate SKU.

What is the difference between Power Apps per user and per app?

Per user covers unlimited Power Apps and the premium connectors for that named user at $20 per user per month list. Per app covers a single app per user at $5 per user per app per month list.

The math flips at three apps per user. Below three apps per user, per app is cheaper. Above three apps per user, per user wins.

What is a premium connector?

A premium connector is any data source that requires a Power Apps Premium or Power Automate Premium license. The list includes SQL Server, SAP, Oracle Database, Salesforce, Azure DevOps, and the on premises data gateway in production patterns. Standard connectors include SharePoint, Teams, Outlook, OneDrive, and the rest of the Microsoft 365 stack.

How do AI Builder credits work?

Power Apps Premium and Power Automate Premium each bundle 500,000 AI Builder credits per tenant per month. Document processing consumes 0.20 credits per page. Form processing consumes 0.10 credits per page. High volume document workloads can exceed the bundled pool quickly and require a credit add on subscription.

When does Power BI Premium per capacity beat per user?

Power BI Premium per user sits at $24 per user per month list. Per capacity starts at the EM3 SKU around $2,495 per month and scales to P SKUs at $10,000 per month or more.

The math typically flips around 250 users for the EM SKU and 500 to 1,000 users for the P SKUs, depending on workload and refresh requirements.

How does Redress engage on Power Platform?

Redress runs Power Platform engagements inside Vendor Shield, the Renewal Program, the Benchmark Program, and the Software Spend Assessment. The work covers connector mapping, per user versus per app modeling, AI Builder forecasts, Power BI Premium decisions, and the EA bundle math. Always buyer side, never Microsoft paid.

How Redress engages on Microsoft

Redress runs Microsoft Power Platform engagements inside the Vendor Shield subscription, the Renewal Program, the Benchmark Program, and the Software Spend Assessment. The Microsoft practice lead is Ethan Mullins.

Read the related benchmarking framework, about us, locations, and contact pages.

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4
Power Platform components
3 apps
Per app to per user flip
250
Users for Power BI Premium capacity
500+
Enterprise clients
100%
Buyer side

Power Platform is the cheapest expensive product on the EA. The standard tier feels free. The premium tier is where the math lives. Inventory the connectors before the renewal, not after.

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