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Pstork1
Most Valuable Professional
Most Valuable Professional

New PowerApps and Flow Licensing coming October 1, 2019

If you haven't seen the announcement yet about the Licensing changes that are coming to PowerApps and Flow starting on October 1, 2019 you really need to read the following Blog. This announcement was originally made at Inspire this year, but has undergone a number of significant changes.  Make sure you read this and understand what it means to you and your organization.

https://powerapps.microsoft.com/en-us/blog/new-licensing-options-for-powerapps-and-flow/



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160 REPLIES 160

"Trust has to be earned every day" ...

 

https://www.computerweekly.com/microscope/news/252466957/Nadella-Trust-has-to-be-earned-every-day 

 

Makes you sick, doesn't it?

 

Create a blank App, Flow, and the connections you need - then hit "Save as..." as many times as it takes to cover off the next five years and retrain in a trustworthy company's product - whichever comes FIRST.

 

Anonymous
Not applicable

Thanks @Pstork1.  I didn't realize that the PowerApps licenses are still in Dynamics.  I haven't found much info.  But when you say seeded, what exactly am I getting?  Right now, I am using excess Dynamics licenses to get PowerApps Plan 2.  Will Dynamics licenses include the $40/user/month license or will it just give me CDS and Dynamics connectors? 

Pstork1
Most Valuable Professional
Most Valuable Professional

I think the answer is somewhere in-between the $40 license and a CDS and D365 connector only.  Its all about the application context.  If the app "extends a Dyanmics application" but uses a non-dynamics premium connector I believe its still covered just like it was in the past.  What won't be covered are standalone applications that have nothing to do with Dynamics.  Its all about the application context.  Here's the section from the FAQ.

 

Will PowerApps and Microsoft Flow use rights change for Dynamics 365 applications?

PowerApps use rights with Dynamics 365 licenses: Dynamics 365 Enterprise licenses will no longer include general purpose PowerApps capabilities. Dynamics 365 Enterprise users will continue to be able to run apps and portals that extend and customize the licensed Dynamics 365 application, as long as those apps and portals are located in the same environment as their licensed Dynamics 365 application. Custom apps or portals outside of the Dynamics 365 environment will require a standalone PowerApps license.

Microsoft Flow use rights with Dynamics 365 licenses: Dynamics 365 licenses will no longer include general purpose Microsoft Flow capabilities. Microsoft Flows will need to map to licensed Dynamics 365 application context - Microsoft Flows should trigger from OR connect to data sources within use rights of licensed Dynamics 365 application(s). Use of standalone flows will require a Microsoft Flow license.



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Anonymous
Not applicable

That is exactly what I was looking for, although not the answer I was hoping for!  We do all of our custom canvas apps outside of the context of our D365 environments.  We work with all custom procsses and do no extending of D365.  So it looks like the places where we have used Dynamics licenses to get PowerApps P2 and use premium connectors are all going to be impacted.  That is a whole different issue for us that may not even fall under being grandfathered.  I've definitely got a lot of fun in the next few months, and I hope I still have a job in the few after that!  We built out a department with 4 developers using PowerApps and its usefulness is slowly slipping away.  Oh joy.

Pstork1
Most Valuable Professional
Most Valuable Professional

Existing Apps wherever thay are that use SQL will still be covered by the grandfathering for 5 years. But any new apps would require either App only or standalone user licenses.



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seanbrogan
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Continued Contributor

If I create 15 blank apps tomorrow and connect them to my SQL database, will they be grandfathered for 5 years too? And I'll still be able to develop them further within that 5 years?
Pstork1
Most Valuable Professional
Most Valuable Professional

I've already addresssed this earlier in this thread.  The answer is that Yes, theoretically that would give you 15 grandfathered apps.  It would also be a clear attempt to violate the spirit of the new licensing rules. So I don't recommend it.



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seanbrogan
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Continued Contributor

Thank you for your reply.

To be honest I dont really want to do it. But realistically, taking away a service I am already using violates the spirit of the licenses I am already paying for.

Hello everyone.

 

I mostly don't enjoy the questions that clients are now asking: "What are the alternatives?" Please please please we don't want to go back there!

 

The second question from clients that cause for some very uncomfortable conversations: How can we confidently continue with full deployment of Teams, Planner, etc, if we might be faced with the same problem in a little while? Erm erm erm erm, look a squirrel!

 

I appreciate what Microsoft is doing and the fact that they sometimes need to make changes to the pricing models especially when introducing new functionality like portals and external access. That being said, everyone's worst nightmare is that once everyone is using Office 365 (which they will), the licensing models would become exponentially more expensive as Microsoft has 'locked' everyone in. I don't want to believe that this is the case it doesn't seem coherent with every talk I see form Satya and the great work that Microsoft is doing in the community. This is however clearly affecting clients' willingness to just implement O365 services as it makes perfect sense.

 

To me this conversation can be split in two. The way the licensing model approaches new functionality and the way it affects existing functionality. The new functionality is fair game as no one had this in the past, so I am just talking about existing functionality for now.

 

Concern 1) The apparent frequent changes in licensing is making clients extremely uncomfortable for long term investment. I think this is having a bigger impact that anyone anticipated.

Concern 2) Users that might need access to one or two premium connectors (or SQL Azure now), but nothing else are now in for some significant costs, even if they don't need any portals or Model-Driven functionality. If someone for an example uses the Word online connector, they would have been able to get a P1 in the past, but now they have to opt in for the per user per app per month license which could potentially be just as expensive as the P2 or per user license if they are using a few apps. There seems to be a big gap on this one as the only way they would be able to get access to that one premium connector (or SQL in Azure now), would be through the per user per app per month model that also gives access to model driven apps, portals, external access and sushi! It feels like this shouldn't be the only option to get access to a premium connector. It might be more cost effective for this user to then use the pay per action model from Logic Apps, but they might want to access this directly from PowerApps depending on the connector.

Concern 3) Another concern, very similar to the previous one, is that sometimes we use HTTP actions to enrich the functionality between existing Office 365 workloads. An example of this is making use of some more advanced filter queries in Flow, and then dynamically return the data to PowerApps from Flow using an HTTP response as per one of ours video on http://youtube/davestechtips. This would effectively mean that this user would have to buy a per user per app per month license to make use of this functionality.

 

We need a more cost effective and manageable way to get access to premium connectors and on premises data sources directly from Canvas apps (and SQL Azure). Originally the HTTP and custom connectors were accessible to the Office 365 entitlement (limited to one per user) but this changed in March 2019. Maybe bring this back where a normal user can access one or two premium functions as part of the O365 entitlement. Maybe also consider a similar model to Logic Apps, allowing per action billing and another one which just allows access to premium connectors, without all the other goodies from portals, models and sushi. :winking_face:

 

The PowerPlatform has an opportunity to be the most connected system in the world and if we can get a workable and cost viable solution for various connectors, I don't see a reason why this opportunity has to be shot down. I have been telling people that PowerApps will be to business applications, like what PowerPoint is to presentations. I hope I wasn't wrong.

 

Dawid van Heerden
Follow on Twitter: @davestechtips
Subscribe to YouTube: https://www.youtube.com/davestechtips?sub_confirmation=1

iAm_ManCat
Most Valuable Professional
Most Valuable Professional

I will be honest here. I have created only Apps that use SharePoint as a backend, however that obviously has its limits. The goal was to start using AzureSQL at a later stage with complex business Apps. There are/were plans for an additional 50+ Apps that would replace business processes (complex ones) that would need a proper relational database and would need to not be limited in terms of number of rows (SharePoint I'm looking at you).

 

I tried working out what it would cost since these Apps will be shared with 600+ staff. On either side of the licensing model (User or App) there is not a chance that I can justify the additional licensing expenses on that to my bosses.

 

I have now started teaching myself C# again, and will instead ask them for money for courses, as this will be the most cost-effective route for in-house development. At least I can hook into our existing data sources using API's etc without having to pay to make that connection. Plus I can then just use the Graph API to poke anything on the M365 platform, again without additional costs (or at least very minimal costs).

 

This change makes me really sad, as I had planned to continue my career path down the PowerApps route.

..but I can hear the discussions going on about alternatives already as the licensing costs would end up being an additional 30% of the entire IT budget for the last year - could anyone justify the value being gained as equating to that?

 

By comparison, we could hire a team of 4 full-time devs and have money to spare for infrastructure costs and training. Management may decide that my role no longer gains them benefits if the licensing cost prevents the plans for future developments along this route (my main concern).

 

I'll still keep using the platform for seeded-level development (as long as that's not separated out for licensing eventually?) -standalones with sharepoint backend if they aren't expected to generate lots of data - but if I want my career to progress I'm going to have to go back to learning traditional App Dev.


@iAm_ManCat
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@Pstork1 wrote:

I've already addresssed this earlier in this thread.  The answer is that Yes, theoretically that would give you 15 grandfathered apps.  It would also be a clear attempt to violate the spirit of the new licensing rules. So I don't recommend it.


Spirit? You think MS has a spirit? Or a soul? They are a greedy multi-billion corporation. I would recommend this practice all day. I'm currently exploring creating an SQL elastic pool with a 100 (or more) idle databases. Then create 100 (or more) empty apps that connects to all those databases. Then I'll be grandfathered for 5 years until I can think of a better alternative.

Anonymous
Not applicable

@iAm_ManCat  This is one of the best posts I have seen on this whole thread and I think it really captures where I am at as well, our business is a little afraid of getting involved in dev ops, and PowerApps was helping massively with that, but now it looks like to get anything real done we will have to rely on suppliers and pay and wait, or push the issue and see if we can get an in-house dev ops team using c# and what not. 

 

This was a major gap that powerapps totally plugged, and they have just priced themselves out of the gap - with the amount of disatisfied people from this change, it makes it clear that this is the case. 

 

What would be really cool to see is if all the people who have been let down got together and made their own low code platform (Not proposing, just saying it would be cool and almost unsuprising to see) 

I feel you here.

I have more than 10 years of experience in custom developing on SharePoint and Office 365. I know how to do apps with back-end or front-end technologies. After so many years, I finally got excited about something totally new, and I mean PowerApps and Flow with this. I mean, I'm far beyond citizen developer scope, but I do see the value.

With PowerApps, I'm able to discuss with that type of people, teams, and practices in different organizations that I haven't been able to reach before. They have seen the possibilities of small or medium size apps and service that would digitize their business done with PowerApps or Flow.

Unfortunately, these license changes are now pushing my clients to another direction. I'm also doubting that is it worth of the effort, money, and time to invest my own doing to this platform anymore?

Anonymous
Not applicable

That's exactly it, we have a supplier with a heavily customised SP type portal, and I can imagine it wouldn't be too difficult for them to extend their platform, develop something on par (ish), double or even triple their licence fee and still be 150 - 200K a year cheaper than this scheme. I mean, for real? Also I understand that for dynamics users this is not a big deal cost wise, and fair enough but you could have gone in way cheaper and still would have cleaned up no problems. I am very interested to see where this goes.

@CurtisJohnson81 My hopeful heart is that this will get rectified (more reasonable cost is all I am asking, I'm not even asking for free) and I can keep on with the plan I made and built our whole business model around. However, my cynical, betrayed, heart is not so sure. We are shopping other options very aggressively. 

lknudson1
Advocate II
Advocate II

Regarding Blog:   "New licensing "options" for PowerApps and Microsoft Flow standalone paid plans
...we’re also listening to input about how to license and implement platform capabilities in standalone plans."

Not an option and not listening.

I could kudo probably 99% of the negative posts to Microsoft's new licensing plan.  Does Microsoft even have a metric on what they will lose and hope to gain on this move?

I have (like many others) invested the last two years building a consulting business model centered around PowerApps for clients and I believe it will all be lost once I "have the talk" with my customers.  

PowerApps had (and I mean had!) huge potential for capturing the cloud market on low code platform apps.  It looked to me like Microsoft was investing a lot of time and money into developing and consolidating the Power Platform with Azure,  and the Office 365 and Dynamics markets.  Would I be wrong to say that PowerApps is still not mature enough to warrant any cost to use it instead of other options?  I thought it was going in the right direction and despite some big gaps (printing, document handling, performance, and delegation limitations being a few) I think a lot of people were planning to hang in there hoping for some of those gaps to get filled. 

Existing cost models were fairly "reasonable" as they stood.  For my larger and mid-sized clients (and even smaller ones) I could make an argument that cost to value was acceptable.  Now, the only companies I can imagine going with PowerPlatform are those huge companies that don't even look at their IT budgets.

Citizen Developer looking for other options.

 

 

This makes the platform extremely limiting which seems like a terrible business case for MS

Andy77-2
Advocate III
Advocate III

Nice work Microsoft, you have truly shot yourself in the foot with this decision. Who do you think are making/using your apps? People with no/small budgets thats who.


BrianHFASPS
Skilled Sharer
Skilled Sharer

Is there written posted verification of SQL grandfathering / grace of sometime. Support is denying that exists to me.

Pstork1
Most Valuable Professional
Most Valuable Professional

For people looking for official notification of the 5 year grandfathering.  Its in the Official Licensing FAQ which you can find here:

 

https://docs.microsoft.com/en-us/power-platform/admin/powerapps-flow-licensing-faq

 

Here's an excerpt

How does the change to PowerApps and Microsoft Flow use rights for Office 365 applications affect me? Will my existing PowerApps applications and Microsoft Flow workflows continue to work?

Yes, existing apps and flows will continue to work. Customers who have been using PowerApps or Microsoft Flow with Office 365 using one or more of the connectors listed above will receive a transition period before the connector reclassification goes into effect. This transition period would be until October 1, 2020 or the expiration of their current Office 365 subscription term, whichever is longer. During the transition period customers can continue to create additional apps and flows using these connectors.

In addition, apps and flows created prior to October 1, 2019 which are using these connectors will receive an extended transition period until October 1, 2024. During this time, these qualifying apps and flows will be exempt from the Premium connector licensing requirements for the reclassified connectors.



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We have closed kudos on this post at this time. Thank you to everyone who kudo'ed their RSVP--your invitations are coming soon!  Miss the window to RSVP? Don't worry--you can catch the recording of the meeting this week in the Community.  Details coming soon!   *****   It's time for the SECOND Power Apps Copilot Coffee Chat featuring the Copilot Studio product team, which will be held LIVE on April 3, 2024 at 9:30 AM Pacific Daylight Time (PDT).     This is an incredible opportunity to connect with members of the Copilot Studio product team and ask them anything about Copilot Studio. We'll share our special guests with you shortly--but we want to encourage to mark your calendars now because you will not want to miss the conversation.   This live event will give you the unique opportunity to learn more about Copilot Studio plans, where we’ll focus, and get insight into upcoming features. We’re looking forward to hearing from the community, so bring your questions!   TO GET ACCESS TO THIS EXCLUSIVE AMA: Kudo this post to reserve your spot! Reserve your spot now by kudoing this post.  Reservations will be prioritized on when your kudo for the post comes through, so don't wait! Click that "kudo button" today.   Invitations will be sent on April 2nd.Users posting Kudos after April 2nd at 9AM PDT may not receive an invitation but will be able to view the session online after conclusion of the event. Give your "kudo" today and mark your calendars for April 3, 2024 at 9:30 AM PDT and join us for an engaging and informative session!

Tuesday Tip: Blogging in the Community is a Great Way to Start

TUESDAY TIPS are our way of communicating helpful things we've learned or shared that have helped members of the Community. Whether you're just getting started or you're a seasoned pro, Tuesday Tips will help you know where to go, what to look for, and navigate your way through the ever-growing--and ever-changing--world of the Power Platform Community! We cover basics about the Community, provide a few "insider tips" to make your experience even better, and share best practices gleaned from our most active community members and Super Users.   With so many new Community members joining us each week, we'll also review a few of our "best practices" so you know just "how" the Community works, so make sure to watch the News & Announcements each week for the latest and greatest Tuesday Tips!   This Week's Topic: Blogging in the Community Are you new to our Communities and feel like you may know a few things to share, but you're not quite ready to start answering questions in the forums? A great place to start is the Community blog! Whether you've been using Power Platform for awhile, or you're new to the low-code revolution, the Community blog is a place for anyone who can write, has some great insight to share, and is willing to commit to posting regularly! In other words, we want YOU to join the Community blog.    Why should you consider becoming a blog author? Here are just a few great reasons. 🎉   Learn from Each Other: Our community is like a bustling marketplace of ideas. By sharing your experiences and insights, you contribute to a dynamic ecosystem where makers learn from one another. Your unique perspective matters! Collaborate and Innovate: Imagine a virtual brainstorming session where minds collide, ideas spark, and solutions emerge. That’s what our community blog offers—a platform for collaboration and innovation. Together, we can build something extraordinary. Showcase the Power of Low-Code: You know that feeling when you discover a hidden gem? By writing about your experience with your favorite Power Platform tool, you’re shining a spotlight on its capabilities and real-world applications. It’s like saying, “Hey world, check out this amazing tool!” Earn Trust and Credibility: When you share valuable information, you become a trusted resource. Your fellow community members rely on your tips, tricks, and know-how. It’s like being the go-to friend who always has the best recommendations. Empower Others: By contributing to our community blog, you empower others to level up their skills. Whether it’s a nifty workaround, a time-saving hack, or an aha moment, your words have impact. So grab your keyboard, brew your favorite beverage, and start writing! Your insights matter and your voice counts! With every blog shared in the Community, we all do a better job of tackling complex challenges with gusto. 🚀 Welcome aboard, future blog author! ✍️💻🌟 Get started blogging across the Power Platform Communities today! Just follow one of the links below to begin your blogging adventure.   Power Apps: https://powerusers.microsoft.com/t5/Power-Apps-Community-Blog/bg-p/PowerAppsBlog Power Automate: https://powerusers.microsoft.com/t5/Power-Automate-Community-Blog/bg-p/MPABlog Copilot Studio: https://powerusers.microsoft.com/t5/Copilot-Studio-Community-Blog/bg-p/PVACommunityBlog Power Pages: https://powerusers.microsoft.com/t5/Power-Pages-Community-Blog/bg-p/mpp_blog   When you follow the link, look for the Message Admins button like this on the page's right rail, and let us know you're interested. We can't wait to connect with you and help you get started. Thanks for being part of our incredible community--and thanks for becoming part of the community blog!

Launch Event Registration: Redefine What's Possible Using AI

  Join Microsoft product leaders and engineers for an in-depth look at the latest features in Microsoft Dynamics 365 and Microsoft Power Platform. Learn how advances in AI and Microsoft Copilot can help you connect teams, processes, and data, and respond to changing business needs with greater agility. We’ll share insights and demonstrate how 2024 release wave 1 updates and advancements will help you:   Streamline business processes, automate repetitive tasks, and unlock creativity using the power of Copilot and role-specific insights and actions. Unify customer data to optimize customer journeys with generative AI and foster collaboration between sales and marketing teams. Strengthen governance with upgraded tools and features. Accelerate low-code development  using natural language and streamlined tools. Plus, you can get answers to your questions during our live Q&A chat! Don't wait--register today by clicking the image below!      

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