Licensing Update: Microsoft PowerApps Portal pricing will be tiered for external users

September 2 2019

After announcing PowerApps Portals in June 2019, Microsoft left the Dynamics 365 Customer Engagement and Power Platform communities waiting until July to find out one of the most important details: the pricing and licensing. And when the approach was revealed, it was met with concern, specifically around the potentially unreasonable costs associated with authenticated users of the portals.

Now, Microsoft has revealed how it will moderate that pricing approach somewhat, offering tiered pricing that will reduce rates as customers buy larger volumes of authenticated user access. Here is the table, published to the Microsoft Docs site and noted recently by alert Microsoft MVP and Portals expert Colin Vermander.

From Microsoft's PowerApps & Flow licensing FAQ

The original pricing model, of charging per login on a monthly basis remains the same. But as the number of logins purchased increases, the price per login decreases from $2 per login for 100 to $1 per login for 1,000, and down to $0.70 for 5,000.

The earlier explanation of pricing did not include the multiple tiers. In his post, Vermander applied one usage scenario involving 10,000 authenticated users to both the earlier single tier and the new multi-tier pricing and found that the tiers will bring overall costs much closer to today's per-portal pricing annually, with some assumptions like the use of dev, test, and production instances.

About Jason Gumpert

As the editor of MSDynamicsWorld.com, Jason oversees all editorial content on the site and at our events, as well as providing site management and strategy. He can be reached at jgumpert@msdynamicsworld.com.

Prior to co-founding MSDynamicsWorld.com, Jason was a Principal Software Consultant at Parametric Technology Corporation (PTC), where he implemented solutions, trained customers, managed software development, and spent some time in the pre-sales engineering organization. He has also held consulting positions at CSC Consulting and Monitor Group.

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Comments

thomaspayne's picture

No idea how it makes them "closer" to portal pricing. A portal was $500 a month for unlimited users.
At the volume pricing.
A single user logging in once a month = $8.4
A single user logging in once a week = $36
A single user logging in once a day = $256

But we have a client with 30,000 users, who renew once a year = 6 x $3,500 per month = $21,000 PER MONTH !! or $252,000 per annum.

Another client who has a "free" and "premium" level memberships. How can you offer a free service when it cost a massive amount per login now.

Commercially - it kills off any business wishing to interact / do self service with it users / clients / partners.

The billing model says effectively "build a website that DISCOURAGES your users interacting with you". The opposite of what most of our real clients want to do.

Please review and give options on page visits without logins - based on server usage. Otherwise, alternatives will need to be put in place, as this is never going to be commercially viable against the competition.


jgumpert's picture

Thomas, thanks very much for sharing this scenario. It is certainly a discouraging proposition unless Microsoft can provide any more practical guidance. We have a line out to them to understand more, like why you can't pre-pay and how anyone is supposed know how to properly buy these logins in advance.