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Microsoft Dynamics 365 and Microsoft Power Apps are the top business solutions available for all businesses, irrespective of their type or size. Businesses use these solutions to streamline their existing processes and operations while increasing productivity and efficiency.
Microsoft not only offers these tools but also various other tools that directly influence business growth, eliminating redundancies from the entire system. There are a lot of similarities as well as differences when we compare Dynamics 365 and Power Apps. Before understanding the comparison, let’s understand these tools a bit.
Table of Contents
What is Microsoft Power Apps?
Microsoft Power Apps is one of the five apps available under Microsoft Power Platform. It is a collection of five Power Platform products that integrate with other Microsoft business solutions to enhance their overall capabilities. The five applications are:
Power Apps
Power Pages
These apps connect with the main system using a common data platform known as Microsoft Dataverse to offer a centralised platform for data sharing and management. The Power Platform apps can easily integrate with almost all applications of Dynamics 365, such as Dynamics 365 Business Central, Dynamics 365 Finance, Dynamics 365 Commerce, and other apps as well.
Power Apps is a business application that lets users create personalised apps without any code. It is a low-code application that allows businesses to develop a specific app without requiring programming skills to resolve a particular issue or simplify a task.
Built on Azure cloud services, you can use Azure licensing to access this powerful platform from anywhere and at any time. The best part about these custom-made apps is their responsiveness across all devices. With a stable internet connection, these apps can be used on any device or screen size.
What is Microsoft Dynamics 365?
Microsoft Dynamics 365 is a suite of different business applications capable of managing various operations of a business. It consists of ERP (enterprise resource planning), CRM (customer relationship management), and other powerful solutions to empower businesses with the latest technologies.
Most of the apps are built using various technologies, including AI (artificial intelligence), BI (business intelligence), ML (machine learning), and big data. The server deployment is not only based on the cloud, but you can also deploy Microsoft Dynamics 365 applications using on-premises or hybrid options.
These flexible deployment options let businesses choose the best option based on their requirements and changing needs. Also, based on the uniqueness of the business, you can customise any solution to suit its core requirements. Even so, you can easily integrate native as well as third-party applications to enhance the overall performance.
How is Power Apps different from Dynamics 365?
Let me start with the basic difference in terms of price. Power Apps licensing is much cheaper than the cost of Dynamics 365 licensing. In terms of capabilities, it depends solely on the basic requirements. Let’s understand it using the example below:
Situation: There is a process in a company where an employee has to manually enter the account details, process the calculation, and create an invoice accordingly, including VAT and other charges.
Solution 1: You would purchase the Dynamics 365 Finance licence and automate this process. The licensing and implementation of Dynamics 365 Finance require significant investment. Also, this solution is capable of doing much more than creating invoices.
Solution 2: You would purchase the Power Apps licensing plan and develop a personalised app without using any code that could calculate the data and create the invoice in seconds. You can choose between the Power Apps Per App Plan and the Power Apps Per User Plan, depending on your needs.
If I were the decision-maker, I would go with Solution 2, as it is cost-effective, simple, easy to implement, and completes the only job I require. However, to manage different complex financial applications altogether, I would go for Dynamics 365. But the requirement was to resolve a single task.
Being built on the same platform, this is the basic difference between these two powerful apps.
Using Power Apps, you can build a customised business application using pre-made templates and simplify existing operations in a cost-effective manner.
Power Apps Licensing and Plans
Microsoft Power Apps licensing includes several options, and the appropriate model depends on how the applications will be developed, deployed, and used.
Power Apps Premium
Power Apps Premium is a per-user licence designed for organisations that need users to build, modernise, and run unlimited Power Apps applications. It supports premium connectors, custom connectors, on-premises connectors, and Dataverse capabilities.
Microsoft's current UK list price for Power Apps Premium is £15.40 per user/month, paid yearly, excluding VAT. Pricing and licensing terms can change, so businesses should verify the current Microsoft pricing and licensing terms before purchasing.
Power Apps Developer Plan
The Power Apps Developer Plan is a free plan designed for individual developers and makers to build and test Power Apps solutions in a development environment.
It is intended for development and testing rather than production workloads. Users who need to deploy and run production applications require an appropriate production licensing model.
Power Apps Pay-as-you-go
Power Apps Pay-as-you-go allows organisations to associate a Power Platform environment with an Azure subscription and pay for eligible usage through Azure billing rather than purchasing all usage capacity in advance.
This model can be useful when application usage varies or when an organisation wants a consumption-based approach. Pay-as-you-go is configured at the environment level, and Azure billing applies to eligible usage within that environment.
An Azure subscription is required to configure Power Apps Pay-as-you-go.
Power Apps Per App Licensing
Power Apps Per App licensing is designed for scenarios where users need access to a specific Power Apps application rather than unlimited Power Apps applications.
Microsoft's licensing availability for the Per App SKU has changed in 2026. The SKU was removed from the public price list effective 2 January 2026, while Microsoft subsequently announced its return to the Cloud Solution Provider (CSP) price list in April 2026. Availability can therefore vary by purchasing channel and customer status.
Businesses should check the latest Microsoft licensing guidance or speak with their licensing partner before basing a purchasing decision on Power Apps Per App licensing.
| Power Apps Plan | Price | Usage |
|---|---|---|
| Power Apps Developer Plan | Free | Build and test apps in a developer environment; not intended for production use |
| Power Apps Premium | £15.40 per user/month, paid yearly | Build, modernise, and run unlimited Power Apps applications |
| Power Apps Premium (2,000-seat minimum) | £9.20 per user/month, paid yearly | Unlimited Power Apps use for organisations purchasing a minimum of 2,000 licences |
| Pay-as-you-go | Usage-based Azure billing | Pay for eligible app usage through an Azure subscription |
| Power Apps Per App | Varies by purchasing channel | Run a specific Power Apps application; availability depends on the licensing channel and customer agreement |
This plan also includes Microsoft Dataverse capacity and crucial components such as connectors for operations to work on the Microsoft Platform.
When we compare Dynamics 365 pricing to Power Apps pricing, we see that Dynamics 365 applications have different pricing.
Which Suits You Better?
It’s up to you and your specific requirements. I would suggest you consider Power Apps to simplify and automate a process before considering Dynamics 365. If you have various requirements based on your current and future business needs, you can even opt for a fully fledged ERP system, like Microsoft Dynamics 365 Business Central. Also, you should consider Dynamics 365 apps in the case of complex issues.
Power Apps and Dynamics 365: How They Work Together
Power Apps and Dynamics 365 can work together to create a connected business application environment. For example, a business may use Dynamics 365 as its core ERP or CRM platform and build a Power Apps application for a specific process that is not fully covered by the standard functionality.
Dataverse can provide the data platform for many Power Apps and Dynamics 365 customer engagement scenarios, while Power Automate can automate related workflows and Power BI can provide reporting and analytics.
This approach allows businesses to extend their existing Microsoft environment without necessarily replacing their core business application.
What Should You Consider Before Choosing a Power Apps Licence?
Before selecting a Power Apps licence, businesses should consider more than the headline price. The following factors can affect the overall licensing requirement:
Number of users: Determine how many users will build or run the application.
Application usage: Consider whether users need one specific app or multiple applications.
Data sources: Check whether the application uses standard, premium, custom, or on-premises connectors.
Dataverse: Review database, file, and log capacity requirements.
Automation: Identify whether Power Automate flows are required and how they will be licensed.
AI capabilities: Consider whether AI Builder or other AI capabilities will create additional licensing or capacity requirements.
Usage variability: Pay-as-you-go may be relevant when application usage is variable.
Future growth: Consider how the number of users and applications may change over time.
Power Apps Licensing and AI Capabilities
AI is becoming an increasingly important part of Power Platform application development. Power Apps can incorporate AI-powered capabilities, while organisations can also use Microsoft Copilot and AI Builder features depending on the application, environment, licensing, and available capacity.
AI-related consumption should be considered separately when estimating the overall cost of a Power Platform solution because AI Builder and Copilot capabilities can have their own credit and capacity requirements.
Microsoft's licensing model for AI capabilities continues to evolve. For this reason, businesses should verify the current licensing and credit requirements for their specific AI scenario before deployment.
How Can Dynamics Square Help You?
There are chances that you may be unable to understand your business requirements, and if you are in a dilemma about choosing one of these applications, consider contacting a reliable Microsoft Dynamics 365 partner, like Dynamics Square. Being a Microsoft Certified Gold Partner, we have been helping businesses and business owners like you resolve their queries while supporting their growth.
You can directly call us at 0203 769 7689 or write an email to info@dynamicssquare.co.uk.
Frequently Asked Questions
Power Apps is a low-code platform for building custom business applications, while Dynamics 365 is a portfolio of purpose-built business applications for areas such as finance, sales, customer service, supply chain, and operations.
Microsoft's current UK list price for Power Apps Premium is £15.40 per user/month when paid yearly, excluding VAT. Pricing can change, so businesses should check Microsoft's current pricing before purchasing.
Power Apps Premium is licensed per user and allows the licensed user to build and run unlimited Power Apps applications. Other licensing models, such as Pay-as-you-go and Per App, are available for different usage scenarios.
Yes. Businesses can use Power Apps to extend Dynamics 365 by creating custom applications for processes that are not fully covered by their existing Dynamics 365 solution.
Dynamics Square UK can help businesses assess their application requirements, users, data sources, integrations, and future plans to determine an appropriate Power Apps or Dynamics 365 licensing approach.
