3 min read
Oct 23th 2024
By David Giraldo

Licensing Overview of the Microsoft Power Platform

Choosing the right licensing for Microsoft Power Platform doesn’t have to be complicated. With a mix of solutions tailored to automate, analyze, and improve your business processes, Power Platform empowers organizations to innovate efficiently. But understanding the licensing options is key to unlocking its full potential.

In this article, we’ll break down everything you need to know about licensing for Power Platform, from why it matters to the latest pricing for 2024. We’ll keep it practical and clear, using examples and insights from the manufacturing industry to make it relatable for decision-makers.

Why Understanding Licensing Matters

Licensing isn’t just a technical detail—it’s a strategic decision. Here’s why:

Cost Control: Choosing the right license ensures you’re not overpaying for features you don’t need.
Scalability: As your business grows, understanding licensing helps you scale effectively without disruption.
Compliance: Using the right license guarantees you’re in line with Microsoft’s terms, avoiding legal risks.
Maximized ROI: The right license ensures you’re using Power Platform’s capabilities to their fullest potential.

Imagine a manufacturing company like “PrimeParts Co.” They needed automation for tracking supply chain metrics. By opting for the Power Automate per-user plan, they saved $5,000 annually compared to a broader license that included features they wouldn’t use.


What Composes Power Platform?

Power Platform is Microsoft’s ecosystem of no-code, low-code business applications tools designed to automate and optimize business processes . Here’s a quick breakdown:

Power BI: Create interactive dashboards and visual reports to drive data-driven decisions.
Power Apps: Build custom applications without heavy coding (no-code, low-code).
Power Automate: Automate repetitive tasks and workflows.
Power Virtual Agents: Develop chatbots to handle users’ and customers’ queries efficiently.
Power Platform

Each component is licensed independently. For manufacturers, tools like Power BI are invaluable for real-time tracking of production metrics, while Power Automate helps streamline processes like approvals, requests, or order assignments.


Trial Plans

Microsoft offers trial plans for all Power Platform components to help businesses test the waters before committing. These trials typically last 30 days and provide access to some premium features.

Benefits of Trial Plans:

Hands-On Testing: See how Power Platform integrates with your current workflows.
Evaluate ROI: Determine whether the tool justifies its cost based on trial results.
Employee Training: Use the trial period to onboard and train your team.

Pro Tip:

For example, a manufacturing company looking to test Power BI can use the trial to create dashboards tracking machinery downtime, helping them gauge its practical impact.

Microsoft 365 Licensing

Microsoft 365 subscriptions include certain Power Platform capabilities, depending on the plan. Here’s how it breaks down:

Basic Capabilities: Plans like Microsoft 365 E3/E5 include access to Power Apps for creating simple apps and Power Automate for basic workflows.
Add-Ons: Premium features like AI Builder or advanced analytics in Power BI require additional licenses.
Included in Teams: Apps built with Power Apps can be directly integrated into Teams, leveraging existing Microsoft 365 investments.

If you’re using Microsoft 365 E5, you already have access to Power BI Pro, which allows you to share dashboards within your organization. For manufacturers managing production across locations, this feature is a game-changer for collaboration.

Dataverse Licensing

Dataverse (formerly Common Data Service) is the backbone of Power Platform, providing a secure environment to store and manage data. Licensing Dataverse depends on the type of Power Platform tool you use:

Per App Plan: Ideal for small-scale apps requiring limited Dataverse use.
Per User Plan: Best for organizations needing Dataverse across multiple apps.
Capacity Add-Ons: For high-volume data needs, added capacity can be purchased.

Manufacturing companies using Power Apps to track machine performance can leverage Dataverse to store sensor data securely. Opting for the Per App Plan reduces costs while keeping data centralized.

Dataverse Licensing

Here’s a snapshot of the latest pricing and functionalities for Power Platform in 2024:

Updated Pricing and Functionalities

Pricing as of November 2024. Always check Microsoft’s official pricing page for updates.

Takeaway

Understanding Microsoft Power Platform licensing doesn’t have to feel overwhelming. By aligning your business needs with the right plans, you can control costs, ensure compliance, and maximize your ROI. Whether you’re automating workflows in Power Automate or visualizing data with Power BI, there’s a licensing solution tailored to your goals.

By using the right information and tools, your business can confidently embrace digital transformation with the Power Platform.

Staying ahead doesn’t have to be difficult—contact our team

Click here

TESTIMONIALS

As Simple as a Smile

Simple BI/David come Highly recommended!! They have helped several of our clients accomplish their BI Solutions.

Shawn Balderas

VP, Oxford Global Resources

David and his team have been incredible from the start with the ease of how they do business to just the expertise and thoroughness of what we have received through their services.

Phil Hardcastle

Director of sales, Bradson Consulting

Working with Simple BI has been a huge relief and has saved us both time and money. Highly recommend them!

Dr. Gloria H. Giraldo DDS

Director of Smile Sonrisa Dental

© Copyright Simple BI 2024.  All Rights Reserved.