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New PowerApps Licensing Idea

Short Story - I am recommending that MS consider:

  • Change licensing so you can buy 'Power Platform Pro' license that includes Power BI, Power Apps & Power Automate.
  • Make the cost of this lower than the current cost of purchasing all three (Lets say $25 per user/month) - we'll meet in the middle of what people want to pay: $0, and what MS want to charge: $55)
  • Roll 'Power Platform Pro' licensing into M365 E5 licensing somehow.
  • Make CDS licensing separate from the 'Power Platform Pro' license
  • WORST CASE SCENARIO: Keep the 'Per App' licensing, but don't make it per app/user/month.  Just make it per app/month.

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Long Story:

Ok, so this could be a bit controversial but here goes.

In 2015, Satya Nadella made Microsoft's mission: "empowering everyone on the planet"
More recently my interactions with Microsoft have been closer to "upgrade everyone on the planet to premium subscriptions"

I get the mentality, but let's achieve both goals by adjusting the goalposts a little, so that everyone wins.

Picture this, you're a CIO who's just made the decision to provide 2,000 staff across the enterprise Microsoft 365 E3 licenses.  At retail cost (in AUD), you're looking at $46 per user/month = $1.1 Million per year.

Our CIO has justified this by reviewing the costs of Windows, security tools, Office suites, etc and realised that very quickly that $1.1 Million will be less than the current cost of maintaining licensing across these tools for the company.

Then someone comes along and says "we should rebuild all of our applications on PowerApps instead of paying for these 30 different applications, to do this well, we will need everyone to have a PowerApps Per User license for everyone".

The CIO does what all CIO's do, they look at the price to purchase & support!.. "How can licensing for a form building application be more expensive than all of office 365!!??"

The quick calculations are done on PowerApps licenses at $54.90 per user/month x 2000 users = $1.3 Million per year.

The resulting decision (one of many that must be made every day): "That's a big ask for software that's only been around 2 years. what's next"

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You can't sell a million dollar tool that when purchased, still requires millions in investment/man hours to make it usable. 

Change the goalposts, make it cheaper to start small, and cheaper to scale large.  InfoPath & SharePoint designer were free, and although they had their quirks, they spread like grass-fire (or MS Access - whatever your analogy 😉). 

These new tools are way better, but they do not provide more value than an entire E3 license!!! 

At the current price, we are encouraging companies to make sub-par solutions using non-premium connectors & workarounds that will only need to be rebuilt when they consider their entire application portfolio

Status: New
Comments
Continued Contributor

I totally agree....
but Good Luck..