6 min readMicrosoft Dynamics Licensing Updates October 2019

Dynamics wave 2 2019

In September, members of our Commercial Team attended the Microsoft Dynamics Licensing Updates Bootcamp at Thames Valley Park in Reading. Here, the team received a detailed presentation from Microsoft on their Dynamics licensing updates for October 2019 and were able to discuss these proposals further with the Microsoft team. This provided our team with first-hand insight into Microsoft’s current approach and plans for Dynamics 365 and the Power Platform in FY20.

Now that the updates have been confirmed, we are delighted to present a break-down of the key updates from the October 2019 Release and what this means for your business.

This blog will focus on the recent updates to Power Apps and Flow* (Power Automate) licensing. Specifically, it will take detailed look at the recent updates to Power Apps licensing, to move from Dynamics 365 Portals to Power Apps Portals, the recent updates to Flow licensing, the grandfathering processes for existing customers currently purchasing each licensing type, and finally the recent updates to the Use Rights of Power Apps and Power Automate within Dynamics 365.

(*since this blog was released, Flow has been renamed Power Automate)

Power Apps Licensing Updates

From 1st October 2019, Power Apps will be available to license on either a ‘Per App’ plan or a ‘Per User’ plan. The ‘Per App’ plan will allow individual users to run application for a specific business scenario, based on the full capabilities of Power Apps. This plan will give licensed users access to 2 Power Apps and 1 Power Apps Portal and will be available for £7.50 ($10) per app per month. The ‘Per User’ plan will equip users to run unlimited applications based on the full capabilities of Power Apps. This plan will give licensed users full access to all Power Apps and Power Apps Portals and will be available for £30.20 per user per month. Essentially, what this means for your business is that if any one user has more than six Power Apps to run, then it is more cost-effective for them to be licensed via the Power Apps ‘Per User’ plan.

Additionally, any user who already holds a license for one of the Dynamics 365 Applications will have the right to access any Seeded Power Apps which have been configured to extend and/or customise that application.

Regardless of the Power App plan type chosen, users will have the rights to run flows within the context of the Power App. However, the use rights won’t extend to enable users to run standalone flows. Standalone flows would be required to connect to other areas outside of the Microsoft stack and would require a standalone flow license in order to be utilised with the Power App.

Power Apps Portals Licensing Updates

Another feature of the 2019 licensing updates is the move from Dynamics 365 Portals to Power Apps Portals. From October 1st 2019, access to Power App Portals will be dependent on the user type. For Internal Users, access rights will be granted via either their D365 App license or Power Apps (per plan or per user) license. Access rights for External Users will now be chargeable depending on whether the user has gained Authenticated or Unauthenticated access to the Power Apps Portal. Access for authenticated users will be paid for per portal login, at a charge of £150.80 ($200) per 100 logins of each portal. New logins are registered every 24 hours, therefore users who login to the portal multiple times within a 24-hour period will only be counted as one login to the portal during that period. Access for Unauthenticated Users will be paid for per portal page view, at a charge of £75.40 ($100) per 100,000 page views of each portal.

Each Dynamics 365 instance with 10+ users will qualify for one free portal instance, with additional instances available for purchase at £377.10 ($500) per portal instance per month (as of July 2019). Additionally, capacity add-ons for both Power Apps and Power Automate can be purchased for £37.70 per unit per month, which provides an additional 10,000 daily API requests.

The transition from D365 Portals to Power Apps Portals should be seamless for partners and customers alike, with no action from partners required to move existing customer portals onto a new platform and existing Portal customers able to remain on their existing license type for the remainder of their current agreement.

Power Automate (Flow) Licensing Updates 

Power Automate (Flow) will be available to license on either a ‘Per User’ plan or a ‘Per Business Process’ plan. The ‘Per User’ plan will allow individual users to build and run an unlimited number of flows. This plan comes with 5000 monthly API requests and will be available for £11.30 ($15) per user per month. The ‘Per Business Process’ plan will enable an unlimited number of users to run this flow and comes with 15,000 monthly API requests. This plan will be available for £75.40 ($100) per business process flow per month, however it does require a minimum purchase of 5 Business Process Flows.

Power Automate licenses will also be available to license via Seeded Flows, whereby licenses to run flows within Dynamics 365 applications are included with the users’ license of that application.

Grandfathering Processes 

The Grandfathering Process for existing customers onto the new licensing structure will be dependent on whether you are purchasing your licenses via CSP/Web Direct/MPSA or an EA/EAS/EES agreement. For CSP/Web Direct/MPSA customers whose licenses are due for renewal between 1st October 2019 and 31st March 2020, you may choose to renew your Power Apps and Power Automate licenses onto either the old or new licensing structure. However, if renewing from April 2020 onwards then you will only be able to renew onto the new licensing structure.

For EA/EAS/EES customers, you may continue on your current licensing structure for the duration of your agreement. If your agreement ends before March 31st 2020, then you may renew the Power Apps and Power Automate licenses within your agreement onto either the old or new licensing structure for the duration of your new agreement.  Essentially, what this means for your business is that if you are renewing your EA/EAS/EES before 31st March 2020 then you will have the opportunity to continue on your existing licensing structure, and subsequently the same pricing model, for a further 36 months. However, all agreements renewed after this date will be renewed onto the new licensing structure.

Use Rights within D365

Additionally, Power Apps and Power Automate Use Rights within Dynamics 365 have changed. Currently, full use rights to both Power Apps and Power Automate are included within Dynamics 365. From October 2019 onwards, under the new licensing structure, Power Apps needs to map to the Dynamics 365 application context. Essentially, this means that the Power App must either customise/extent the Dynamics 365 application or run as a standalone application within the same environment.

For Power Automate, under the new licensing structure, flows have to trigger from or connect to data sources within the use rights of your Dynamics 365 application. When flowing outside of the Dynamics 365 application app context, a flow license will be required.

Under the Grandfathering Process for Power Apps and Power Automate Use Rights within Dynamics 365, existing customers will be able to continue on their existing licensing structure until their licenses are due for renewal or 1st October 2020, whichever is longer.

If you have any questions on the Dynamics licensing updates and how it impacts your business, please get in touch with us directly on info@redspire.co.uk or call Head Office on 0845 226 8170