Confused on PowerApps Licensing Changes.

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Posted on by mogulman

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I am confused on PowerApps licensing changes that go into effect in October 2019. Let me describe my scenario.

1. We are a small legal business with less than 10 employees.

2. We switched from Salesforce to Microsoft about 2 years ago.

3. We all have Microsoft 365 Business licenses which comes with PowerApps.

4. I'll be using Azure SQL DB for all data. This provides incredible flexibility for robust business apps.

5. I'm temporally developing app using On-premise Data Connector and SQL Server. This allows me use SQL Profiler to debug problems and optimize performance. I'll be switching to Azure SQL DB in the next month.

Switching to Microsoft from Salesforce provides a lot more flexibility. Azure Functions is great to extend PowerApp capability. I'm not using HTTP request.

What impact will the October changes have in my case?

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Building Power Apps

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Pstork1 69,024 Most Valuable Professional on at

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When you say you switched from Salesforce to Microsoft it implies you are using Dynamics 365 CRM, which would be the equivalent product. Is that true or are you just using regular Microsoft 365? The regular PowerApps license for M365 doesn't inlcude a premium license, which would be required if you are using an on-premises gateway with SQL. So again I suspect you are using CRM licensing. If that is the case then you shouldn't have an issue because the Dynamics license for CRM includes the equivalent of a premium P2 license today and that isn't changing significantly on October 1.

You should also be aware that MS has grandfathered in any apps taht are using SQL on October 1 to not require premium for SQL for 5 years. That grandfathering wouldn't cover the use of the on-premises data gateway. Azure SQL down't require the gateway, but will require a premium license for anything built after Oct 1.

So a lot really depends on what license you actually have. Could you supply more information?

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mogulman 764 on at

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I'm not using Dynamics CRM. I'm just using Microsoft 365 Business. I started using the On-Premise Gateway and SQL Server. I think I'm grandfathered in until early next year. I'm switching to Azure SQL DB in September so I think I should be grandfathered in for 5 years.

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Pstork1 69,024 Most Valuable Professional on at

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For Azure SQL you'll be grandfathered in for apps that exist on Oct 1, but won't be able to build any new apps without premium licensing. And yes, the gateway should be usable until next January if you were already using it by this spring.

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v-xida-msft Microsoft Employee on at

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Hi @mogulman ,

Do you mean that you purchase Office 365 license for your account rather than standalone PowerApps license?

If you only own have Office 365 license for your account, I think you would not be able to use the On-premises data connector and Azure SQL within your app since October 2019.

Currently, the On-premises Data connector, Premium connector and Customer connector in PowerApps are not supported within Office 365 licenses. And Effective October 1, 2019, the Azure SQL connector would be reclassified from Standard to Premium.

So if you want to access all Premium, on-premises and custom connectors within PowerApps after October 1, 2019, you must purchase a standalone PowerApps or Flow plan license for your account.

More details about functionality supported under Office 365 license includes PowerApps, please check the following article:

https://docs.microsoft.com/en-us/power-platform/admin/pricing-billing-skus#powerapps-for-office-365

Best regards,

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mogulman 764 on at

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@v-xida-msft I purchased Microsoft 365 Business licenses. The license includes PowerApps. That license type is not listed in the link you provided.

Late last year I received a notification that the on-premse connector would require a special license after Jan 2020. Since I'm migrating app to Azure SQL DB this week it is not a big deal.

I find the SQL Profiler an incredibly valuable tool to debug and optimize performance. I may need to get one premium license to get this capability. I would debug and optimize performance using an on-premise SQL Server and migrate to Azure SQL DB. It would be nice if MS offered a developer license for this purpose.

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Pstork1 69,024 Most Valuable Professional on at

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The Microsoft 365 Business license would be the same as either the Office 365 Business Essentials or Business Premium license mentioned in the article.

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bb234 2 on at

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Just hoping to verify our specific situation with re PowerApps licensing, our scenario as below, this is similar to the OP
a) we are on Office 365 E3 plan
b) Trialled powerapps Jan 2019 with Canvas app + On prem SQL
c) Changed to new licensing i.e. PowerApps P1 ~ March 2019, i.e. $10 per user per month
d) Now with new changes, its very confusing as to what we need to do to stay licensed. Do we need to transition to $40 per user per month plan or go to the $10 per user per app per month.
I cannot find this clearly referenced in the MS blog post on the matte i.e. since we are using the onprem connector, do we need to go to premium licensing i.e. $40 per user per month?
Happy to get our ITS to raise a ticket, but we need this clearly explained to sell this to stakeholders.

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Pstork1 69,024 Most Valuable Professional on at

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You will eventually need to go to the $40 per user per month plan unless you only have one or two apps. If its less than 4 it may be cheaper to go to the $10/app/user/month plan. But you will have access to your original plan until at least next October, 2020 since you are already on a P1. Its only after that, or the expiration of your license whichever is longer, that you will have to migrate to a new plan. The app you originally tested with using SQL will also be covered until October, 2024. Up until October the SQL connector was a standard connector and existing apps that used it will continue to see it as a standard connector for 5 years.

So to summarize:

You keep your existing licensing ($10 per user) until it expires or next October, whichever is longer.

SQL apps are covered as standard license for 5 more years

After next October you will need to move to either the $40 per user or $10 per app per user plan.

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Community Power Pla... Microsoft Employee on at

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Hi @Pstork1 ,

Can I please have an update.

1- My organization has the Microsoft 365 E3 license.
2- Have on-premises database.
3- And we want to use the SQL connector in almost all the PowerApps.

I am able to use the SQL premium connector in PowerApps and Flow. Also the data gateway installed and configured lets me retrieve my on-prim data.

Now I am confused that will I be charged by Microsoft for using these? OR will I have to move to a different license and also Why am I able to use the premium connector if they have put in documentation that apps created later than Oct 2019 will not be able to use it.

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Pstork1 69,024 Most Valuable Professional on at

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Check to see if you have a Power Apps Trial license. Otherwise, your license may be grandfathered in for a year from October,2019 to October 1, 2020. But after that or when your trial license expires you will be required to have a premium license. Even if the app existed prior to October 1, 2019 with a SQL connector you would still be required to have a premium license for the On-premises gateway.

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