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Power Platform Community / Forums / Power Apps / Licensing cost for a P...
Power Apps
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Licensing cost for a Power App being sold to other Organisations

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Posted on by 14

My organisation will be building an application using the power platform. It will use dataverse, SharePoint, Power Automate and may use Premium Connectors.

 

This application will not be an internal application used by my organisation, it’ll be sold as a subscription model to other organisations and their staff (Customers). E.g. $X a month, per user.

 

Multiple Power Automate flows will be used. Some flows will be triggered by the users as they use the application, resulting in maybe 25,000 instant flows being executed every day per Organisation.

 

I understand this PowerApp could be sold via AppSource.

 

What I’m trying to get clarity on is how the licensing would work. My organisation won’t be hosting the Customer’s data, they would have their own PowerApps environment where the application would reside. I’ve been told that all the Customer would need to pay would be a single “Per App” licence per User - Is this correct? Would they also need something like a Power Automate Premium licence per user too?

 

Once we know what the minimum licence cost is per user per month for the customer, we’ll know how we can then price our application (and to see if it’s actually financially viable to use the Power Platform to achieve this). 

 

Any information would be appreciated, if you need further information please ask. 

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  • Verified answer
    Pstork1 Profile Picture
    69,197 Most Valuable Professional on at

    A lot of the answer depends on the specific apps and flows. But assuming that all the flows are either triggered by an app or related to the business function of the app, if they use automated or recurrence triggers, then yes the customer would only need a per app license for each user for each app. A per app license only covers one app. So if they are buying multiple apps then they would be better off with a premium license for each user.

     

    But in general if you sell the app via App Source then they are responsible for the licensing and it shouldn't be part of your cost.

  • OuiChef Profile Picture
    14 on at

    Thanks for your reply, that's really useful. 

     

    If the software was provided outside of AppSource, for example my organisation would deploy a complete solution to the Customers environment (including any Power Automate automations) would the licencing situation be the same? 

     

    Thanks

  • Pstork1 Profile Picture
    69,197 Most Valuable Professional on at

    The licensing would still be required, but outside App Source you could negotiate with the client who pays for the licensing. But in most cases it would still be the client if it runs on their tenant.

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