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Power Portal Licensing

Hi Team,

I'm just curious to understand the Power App Portal Licensing for external users. My Portal is in Tenant A and the external users accessing the Portal are from another Tenant in this case there will be almost 25 external users so the license requirement for a month would be around 25*30= 750 logins/ month required which requires me to buy 8 units of Power Apps Portal Login Capacity add on Tier 1 which would cost me around 8*200$= 1600$ per month.

My question is can't i assign the Power App Per app license (5$/per app/month)  to these 25 external Users which are from different tenant which would cost me around 25*5$ = 125$ per month so the cost can be reduced ?

Will this work around work or am I missing any concept in the licensing to external users please explain on this?

Super User
Super User

Hi @SagarKonda 

Welcome to the Power Pages / Power Portals forum. 


I will try to explain the licensing in a simple way. There is a slight misunderstanding in your calculation. 


1.  Assigning an internal user's license to External users is not possible. You can add tenant B as the guest user in your tenant. But Assigning licenses is not allowed for guest users. Hence, you need to buy "Login capacity Authenticated users" 


2. Adding the official screenshot below, for your 25 users, you need to buy Tier 2 which cost 100$ per unit. 


In simple terms, 10*$100 = $1000 per month 





Hope it helps. 

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Super User
Super User

@SagarKonda @ragavanrajan 

maybe there is something I am missing, but maybe it would work just fine. Internal users have no additional cost to Power Pages, but they must authenticate via Azure AD and not local authentication or Azure AD B2C for example.


if your users are still somewhat internal, I don't see why not doing that. If your users were completely external, I wouldn't recommend as it could end up that they could have access to something they shouldn't.


I actually think that's a very clever idea. But I could be wrong

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Power Pages Super User | MVP

Oliver Rodrigues


Hi @OliverRodrigues 

The first statement from @SagarKonda was asking about external user licensing. Hence, my explanation. 



Helper I
Helper I

Hello @ragavanrajan 

I was looking for your answer about using guest users in Azure AD and Power Apps Portal.

Do you confirm that it would not work to have guest users in Azure AD with a Power Apps per app license to access a portal, instead of of using "Login capacity Authenticated users"?


Also I was wondering about Pay-as-you-go, is "Login capacity Authenticated users" covered also in PAYG?

Apparently PAYG works for guest users authenticated in Azure AD. But if the external users are not guest users but only authenticated in my Portal app, would PAYG work?



Advocate II
Advocate II

@SagarKonda It gets even more complicated. I think you said you are using D365. Are you only using FO? If you're using other D365 products, there is a different cost for portals. I think it may be cheaper for you. This is all I can share.

Hi @JulienF 

I can certainly confirm that adding guest user in your tenant Azure AD will not have any possiblity to assign license. You definitely need to buy login authenticated tiers for external user.

PAYG is only for internal users authenticated logins. For external users, the tiers will apply. 


Good insights here.

Hope it helps. 




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Solution Sage
Solution Sage

@ragavanrajan FYI: i'm not sure if it is specific to only certain licences, but you can assign a licence to a Guest in your Azure AD (you do it from the Azure AD Admin center not the Office 365 Admin interface) see


There were some limitations to this e.g. for Dynamics 365 (sales etc) whilst the user could be licenced and access the Model Driven app etc they were not able to use the Exchange integration. 


Solution Sage
Solution Sage

For the general conversation, I suspect (but am not 100% sure) that you would not be appropriately licenced with the per app licence unless your 'external' users actually met the definition of an 'internal' user.  as per the licencing guide the general definition of external user is

"External User means users that are not employees, onsite contractors or onsite agents of Customer or its Affiliates"

Thanks @Fubar 

I always try from the office 365 admin. But so far I didn't have any success assigning powerapp license to guest user. There was always some intermittent error while assigning. But for the external users Login capacity authenticated works so far. 

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