Power Platform License Changes

As most of you already know, the Microsoft Power Platform champions users capturing, storing and processing data at a low cost with minimal expertise. Every year, twice in fact, Microsoft releases updates on what’s to come. Our last update was back in April 2019 where we received new features such as integrations with the common data service, AI capabilities and many more. Microsoft have now released their plans for October 2019 and unknown to some, with substantial licensing changes. Now you’re probably asking, “How does this affect me?”; this article aims to alleviate any concerns and give better clarity on these licensing changes.

As of October 1st, 2019, the new licensing comes into immediate effect. This includes everything from Microsoft Flow, PowerApps, Dynamics 365 and other common data model features. Microsoft will be moving away from the plan style licensing and move towards a per app licensing model. Previously you could license Dynamics 365 through multiple plans; now this is broken down into base licenses and addition SKUs.

The below diagram shows how Microsoft is still keeping the “Customer Engagement” licensing type however breaking it out into specific apps. Essentially to license your team you’ll need to understand what their roles are and the areas of the business they need access to. On top of this, additional SKUs can be purchased to enhance the functionality already available through the base license. The idea behind this is that most users don’t need access to all areas of the business and can instead be licensed cheaper whilst still maintaining access to what they need.

Power Platform License

Obviously, the prices in the above image are subject to change and that the official Microsoft price list must be used. Additionally, the above image only affects the Dynamics 365 CE breakdown, other changes are coming to PowerApps, Flow and other Dynamics 365 products. Unfortunately, at the time of writing this article the price lists are unavailable but will be released following the go-live date. Which raises the concern, “What if I am already paying for licenses and don’t have time for change?”; Microsoft are allowing a year grandfathering to ensure your business has enough time to adapt to the licensing change.

In summary, there are changes coming into effect but rather than worry, embrace the change. As more updates are released over the coming months your Power Platform will have extended functionality at a reduced cost.

In the words of Microsoft, “Will you be disrupted, or will you be the disruptor?”.

If you’d like to have your say and understand more about the Power Platform and its changes, get in contact with risual where our team of experts can assist with any and all queries. As experts in transformation risual has a wealth of experience that can be used to grow your business.

About the author