Microsoft recently updated the licensing rules for its popular Power Apps, which could force some customers to switch their users to more expensive licenses. This change could significantly increase costs, especially for organizations that already use these apps on a large scale.
Initially, users with Power Apps licenses could access data in Dynamics 365 – Microsoft’s suite of business applications that includes CRM, ERP and HR – by reading the data, as long as they didn’t edit the data in “restricted” tables. However, a new Dynamics 365 licensing guide for March 2024 introduced changes to the definition of “restricted tables,” which could increase licensing costs for organizations that have built Power Apps around Dynamics 365.
Andrew Snodgrass of analyst firm Directions on Microsoft points out that the list of “restricted tables” in the new license checker includes several tables that were not previously restricted. For example, Microsoft now designates “restricted operations” that apply to processes such as invoicing that previously ran on unrestricted tables but now require a full Dynamics 365 license under the new rules.
This move can significantly burden users, depending on how many Power Apps licenses they have and how many of them will be affected. For example, 1,000 users with Power Apps subscriptions at $20 per month ($240,000 per year) is significantly less than 1,000 users with Dynamics 365 Enterprise licenses at $95 per month ($1.14 million per year).
Snodgrass expressed disappointment that the new license checker tool was not a step forward in helping customers understand what licenses they need. On the contrary, Microsoft appears to be using this opportunity to further restrict Power Apps subscription rights and increase costs for customers who have deployed Power Apps solutions in good faith.
Microsoft has responded to the concerns by saying that it is not making any changes or updates to the licensing requirements for Dynamics 365 or the Power Apps solution. The new Solution Control Tool is intended to simplify and improve the way customers understand licensing requirements and optimize user licensing.
The situation shows that while Microsoft is trying to simplify and clarify licensing requirements, the impact may be different for different Power Apps users, which can lead to significant cost implications for some. Businesses using Microsoft Power Apps and Dynamics 365 should monitor these and perhaps consult with licensing experts to effectively navigate the new rules.
