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PowerApp Licensing

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Posted on by ambobo

I have found some clues to my question, but no definitive answer and I want to be sure to estimate costs.

My company has a Microsoft 365 E3 license for all employees. We want to use Powerapps and want to avoid costs as much as possible. We have different options with datasources (on-prem sql db, dataverse) and model-driven or canvas apps we could use.

From what I understand dataverse is not a premium connector and thus included in the subscription we have.

I can only see that canvas apps are included, model-driven apps require further licensing. (which would be per user/per month and thus costly)

Am I right to assume that we can use a create and use a canvas app with dataverse as a datasource without additional licensing, but if we would use a model-driven

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iAm_ManCat 18,256 Most Valuable Professional on at

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No, Dataverse is technically still a premium connector for Power Apps (model and canvas) - it's non-premium for 'Microsoft Apps' like Project etc that leverage it as a database.

Dataverse capabilities with office licenses:

Licensing overview for Microsoft Power Platform - Power Platform | Microsoft Learn

Limitations of that (capabilities included):

Licensing overview for Microsoft Power Platform - Power Platform | Microsoft Learn

"These limited capabilities of Dataverse are only available through select Microsoft 365 licenses and can't be used to run any custom apps or Power Automate flows, or run any Power Virtual Agent bots, or use any other data that doesn't belong to the Microsoft 365 applications that take advantage of these capabilities."
Community Power Pla... Microsoft Employee on at

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Hello @ambobo ,
Dataverse is a included in powerapps with canvas and model-driven.
You don't need any additional licensing.
Therefor, using dataverse in power automate will only works if you have the premium license.

If this solves your question, would you be so kind as to accept it as a solution.
Thanks!
iAm_ManCat 18,256 Most Valuable Professional on at

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Just to confirm, so you dont get gaslit by other people's responses - this is 100% a premium connector.

Created an app, inserted one dataverse table, saved the app. (look at date/time creation in the screenshot - its is currently 0928 (UK time) here.
ambobo 27 on at

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Thank you. I am still confused though. Because it does not show the diamond symbol for my use case. In the link you sent, it says that we need a premium license for production environment, which we don't have, but it runs on a production environment.
If we try to execute the canvas app we get a sign-up page for a premium plan.
iAm_ManCat 18,256 Most Valuable Professional on at

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Yes, the diamond symbol on the connectors can be misleading. If you look at the App's details from make.powerapps.com - as I have done here - it will tell you if the app is now in premium capacity
timl 37,287 Super User 2026 Season 2 on at

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@ambobo

I get how this is confusing but if it helps to alleviate some doubt, I guarantee that @iAm_ManCat is 100% correct on this matter. I'd trust anything that he posts on this forum.

Without a premium license, you can still develop apps in the maker portal. However, you and anyone else you share the app with won't be able to play the app without a premium license. I suspect it's this behaviour that adds to the confusion.
ambobo 27 on at

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Is that applicable for both canvas and model-driven powerapps?
timl 37,287 Super User 2026 Season 2 on at

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@ambobo - yes, that's applicable for both canvas and model-driven apps.