“I thought this was included with Dynamics 365. Why are we getting license errors?”

If you’re responsible for automating team processes, like building flows, setting up approvals, managing request, you’ve probably heard this more than once. Maybe you’ve said it yourself.

Let’s say you rolled out a Power App to streamline onboarding. It’s using SharePoint, Outlook, maybe even Teams. No problem so far. But the moment someone adds a Dataverse table or a Power Automate flow that hits a SQL database? It suddenly prompts you to start a trial or upgrade to a premium license. Now you’re faced with licensing decisions.

This confusion is one of the most common traps for operations teams using Power Platform in Microsoft 365 or Dynamics 365 environments. The tools look free. The makers assume they’re included. But under the hood? It’s more complicated.

This is the second part of our Power Platform licensing series. In our previous article, we covered Microsoft Power Platform licensing changes in 2025 and how they affect users.

Which Power Platform features are included in M365 and D365?

Bundled access comes with hidden limits. Let’s break it down.

M365: Good for standard connectors, but that’s it

Microsoft 365 plans (like E3 or E5) include:

• Power Apps with standard connectors (SharePoint, Excel, Outlook, and many more)

• Power Automate with standard connectors (triggers and actions)

• Canvas apps embedded in Teams
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But the moment your app or flow uses:

• Premium connectors (like SQL, Dataverse, Salesforce, or custom APIs)

• Model-driven apps with richer logic and relational data

• Standalone Power Apps portals (now Power Pages)

• AI capabilities or Copilot integrations

…you’ve left the “free with M365” zone. Even read-only access to premium data still requires a premium license — a common oversight that leads to compliance issues.

D365: More power, but only for licensed users — and only for the specific app

Dynamics 365 plans (like Sales, Customer Service, or Field Service) come with broader Power Platform entitlements — but there are two strict boundaries:

• Only licensed D365 users get the extra capabilities

• Only for scenarios tied to their specific D365 app
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So, if someone with a Dynamics 365 Sales license builds a Power Automate flow that connects SharePoint and Dataverse for a sales process?
Covered.

But if a non-Sales user tries to use that same app or flow?
They’ll need their own premium license.

And if the Sales-licensed user builds an app or flow for HR, Finance, or Operations?
That falls outside the licensed scope — even if it uses the same Power Platform components — and may not be compliant.

Bottom line: D365 licensing is generous within the app boundary, but it doesn’t transfer across departments, scenarios, or users.

Are hidden assumptions breaking your automations?

Let’s say your team builds a Power Automate flow to route vacation approvals. It uses SharePoint and Outlook, so you assume it’s covered under your M365 license.

But then someone quietly adds a premium connector to Entra ID or Dataverse. Nobody flags it. The flow still works, more or less. Then you start seeing:

• Flow throttling

• Unexpected errors

• Sudden license warnings
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Admins are confused. Users are frustrated. And now you’re chasing down compliance gaps and trying to keep things running, instead of focusing on scaling meaningful work.

This is the risk of assumptions. Power Platform doesn't always block you upfront — it lets you build and run… until usage crosses an invisible line.

Does usage mean you're licensed?

Here’s the tricky part: Just because something runs doesn’t mean it’s licensed.

Power Platform often doesn’t block you at the start. Apps and flows may run smoothly at first. But that doesn’t mean you’re in the clear.

Problems tend to appear later, when:

• A new enforcement rule quietly kicks in

• A background API call exceeds your entitlements

• A usage audit flags non-compliance
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And by then, it's not just a licensing problem. It’s a business disruption.

If you're not proactively monitoring usage against entitlements, you're one policy change away from broken automation and user downtime.

How to stay in control before Microsoft starts monitoring your team

If you’re not monitoring entitlements proactively, you’re not in control — Microsoft is.

If you want to avoid surprises, you need a licensing-aware automation strategy. Here’s how:

1. Know what’s “premium”

Keep a cheat sheet of premium connectors, features, and app types. Share it with your makers and approvers so they understand when they’re entering license territory.

2. Map users to roles and needs

Who’s building? Who’s consuming? What data sources are in play? Don’t assign licenses blindly. Align them with usage patterns.

3. Monitor usage centrally

Use these tools to track and stay ahead:

• Power Platform Admin Center
  See request volumes, connector usage, and license assignment gaps across environments.

• Azure Monitor (optional)
  Set alerts when flows near usage limits or exceed thresholds — useful for high-scale environments.

4. Watch for “inherited” access

Just because someone is part of a Teams channel or D365 group doesn’t mean they’re licensed for the app or flow embedded there. Shared access ≠ shared entitlement.

Don’t assume, assess

If you’re building automation at scale, especially in hybrid M365 + D365 environments, licensing can’t be an afterthought.

• M365 gives you the basics but not the premium connectors most real-world apps need.

• D365 licenses go deeper but only within narrow boundaries.

• And enforcement is now active and automated.
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So, if you want to keep building without friction, make license visibility part of your ops playbook. Stay ahead of usage, keep your team up-to-date, and model costs before they spiral.
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If you’re not sure which license is best for your team, contact us to discuss your use cases.

Up next in our Power Platform licensing series:

• Staying ahead of connector changes in Power Platform

• Request management made easy: Staying within limits and budget

• Scaling without breaking your budget

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