Microsoft have announced the first price increase in over five years for its Power Apps Premium licences, starting from January 1st, 2027
The price change affects the following two SKUs:
- Power Apps Premium – increases from $20 to $22 per user, per month
- Power Apps Premium (2,000-seat minimum) – increases from $12 to $14 per user, per month
UK Pricing has yet to be announced, but when available, we will update our Power Apps page accordingly. The price increase does not affect the Per-App or Pay-As-You-Go plans.
Although the price has remained static for over five years, Microsoft have been adding additional functionality over that period, so the increase is not a great surprise. Improvements include:
- Integrated AI – Power Apps Premium includes in-app AI capabilities, including app skills that can be used for data entry, data exploration, visualisation, and summarisation. It also supports the integration of Microsoft 365 Copilot and agents into business applications, while providing developer capabilities for code-first applications alongside administration tools for both low-code and code-first solutions.
- Improved data security and resilience – Dataverse capabilities include additional storage capacity, Customer Managed Keys, Customer Lockbox, high availability across Azure availability zones, and self-service cross-region disaster recovery.
- Governance, ALM, and monitoring – Capabilities include Managed Environments, environment groups and rules, built-in pipelines, source control integration, solution checker enforcement, and centralised monitoring with health metrics, logs, and recommendations. These all help organisations to apply consistent policies, manage deployments, surface operational issues, and administer Power Apps.
Existing subscriptions will retain their current price for the remainder of their current subscription term, with the new price applying to new purchases, renewals, and co-terminations with a term beginning on or after January 1st, 2027.
Summary
Organisations never welcome price increases, but in this case, Microsoft have held off from any changes for over five years and there have been significant advances in technology during that period, including the boom in AI functionality, so this increase comes as no surprise. If you are an existing Strategy 365 client and want to discuss how this increase affects your current subscriptions, feel free to get in touch with one of our experts today.