Licensing for Premium Connectors

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Posted on by rickydg

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Hi,

I'm creating an app that my whole org should be able to use (c. 1150 employees) with the premium Dataverse connector.

All users have an Office 365 E3 license currently.

We have been informed by our MS partner that we only need a single per app license to run the app, so all org users can access and use the app at $5/month.
I have been informed by a colleague that the information that we have been provided is incorrect, and we would actually need a per app license, per user at $5/month, totalling $5750/month.

Which is correct?

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Building Power Apps

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developingteal 392 on at

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It should only cost $5/Month as the dataverse connector is only using the one license to connect it - not every single user so you should only need the one license.

I could be wrong but that is my understanding.

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LaurensM 12,516 Moderator on at

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Hi @rickydg,

Something might have been lost in translation throughout the process. Each org user can indeed access the app with a single Per App license.

However, in practice this means that each user will need to be licensed (Per App) for that particular application. The Per App license is actualy: 1 license - for each user - for each app - in each environment

In short, your second calculation of 5750 is the correct one. 😊

As a note: should you use a DEV- UAT - PRD environment approach for your project - your testing users will also need to be licensed in that environment. (per app is limited to 1 app in 1 environment) The following link provides more clarification.

If this solves your question, would you be so kind as to accept it as a solution & give it a thumbs up.

Thanks!

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rickydg 107 on at

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Thanks for the replies, although there's still some disagreement, even here!

Is anyone able to give definitive advice on costings, as the MS Licensing model has clearly caused some confusion - even with MS partners?

Does the E3 license make any difference here?

To clarify, while the app will be built and maintained by a single user, the Dataverse connection will be utilised to read and write data for all users.

Any further support if much appreciated.

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timl 37,154 Super User 2026 Season 1 on at

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Hi @rickydg

I can confirm that @LaurensM is correct here - $5750/month is the correct figure.

As an additional comment, you might want to calculate the costs of pay as go pricing. Whilst this is more expensive at $10/user/month, if on average fewer than 50% of the employeees use the app on an average month, you can achieve some cost savings.

https://learn.microsoft.com/en-us/power-platform/admin/pay-as-you-go-meters

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