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Licensing Question / PowerApps for 0365 + Dynamic 365 CDS(data verse)

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Posted on by Hydrix

Hi, I have users who are only assigned E3 Licensing with no PowerApps per-user plan. I attached the list of Microsoft E3 Licensing that the users who do have access to apps with premium connectors. These users are able to connect to our company PowerApps that use premium connectors(SQL Server) despite not having a PowerApps per-user plan. My question is the Dynamics 365 CDS licensing in combination with PowerApps for Office 365 giving them access to standalone canvas apps(through PowerApps for Office 365) and premium connectors through (Dynamics 365 CDS). In the licensing guides they state Dynamics 365 licensing does cover premium and custom connectors, but it sounds like it should only be for Dyn365 applications. I will also note these users are not under a trial plan and have been using these apps for over a year. If this isn't the case how are these users able to use apps with premium connectors if they only have the licenses below?

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joe_hannes_col 1,843 Super User 2024 Season 1 on at

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Hello @Hydrix,
Your users can use apps with premium connectors if they have Dynamics 365 licenses that provide "Limited Use Rights". As of today, these are:

These Dynamics 365 licenses grant the users the use of premium connectors:

However, the licensing guide also states:
"Limited Power Apps use rights are included within the same environment(s) as the licensed Dynamics 365 application(s) to allow users to customize and extend Dynamics 365 applications. Use of Power Apps capabilities included with Dynamics 365 licenses must be only within the context of the licensed Dynamics 365 application. Further, the specific use rights vary by Dynamics 365 license type. "
Our interpretation of this is: You can use premium licenses, but only if you use them for business processes that are somehow related to the processes the D365 apps you licensed cover. This is somewhat ambiguous. As far as I know, there are no automatic checks to verify that your apps are actually working in the context of Dynamics 365 applications.
However, even if this is not automatically enforced, if your applications are totally unrelated to D365, technically you would need standalone licenses for the users even if they have the seeded use rights from D365.
You can find the quotes and tables above in the Power Platform Licensing Guide.

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Hydrix 5 on at

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I did see that in their licensing guide, I guess I was just wondering what "dynamic" related application would look like. We do use CRM for sharepoint and our apps are hosted on sharepoint, however I don't believe there is a relation to the actual APP itself, although one of them does use CDS but that seems to be the only one asking for premium licensing... Which is weird because to me that would be the only one that should be covered under dyn licensing. I do remember Microsoft talking about a grace period but all of these apps were developed after Oct 1st 2019 so I don't believe that would be covered for the 5 years. Our apps do use Azure SQL server, which is also used by Dynamics, but again I don't believe that would be a dyn365 related application although maybe it is. Anyways Thanks Joe! I'll just wait for the other shoe to drop so to speak.

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