"Power Automate Process" is a new SKU that has been launched in August 2023
There's a new #PowerAutomate license in town!
"Power Automate Process" is a new SKU launched in August 2023, aimed at harmonizing the pricing model between cloud-based flows (DPA) and robotic process automation (RPA). The licensing challenge is that automating a process reduces manual work by users, and Microsoft must still generate revenue from their products. Under the traditional Office "per user" license, using the product more could lead to needing fewer users. However, with Power Automate, customers mainly pay per seat, instead of by usage capacity, like Azure.
- As automation reduces the need for a person, cloud resource consumption must align with customer payment to Microsoft.
- "Power Automate per flow" license enables you to run a specific process and use premium connectors. It does not require every employee to have a Power Automate license.
- The cost is $100 per cloud flow, with a minimum purchase of 5, thus the pricing starts at $500 per month.
- "Power Automate Process" is a new license covering both cloud flows and RPA bots without a minimum quantity but a higher unit price: $150.
There's a new #PowerAutomate license in town! How does the cost compare to the existing offering? 💰
"Power Automate Process" is a new SKU that has been launched in August 2023. Similar to what was done with the "Power Automate Premium" license that is a per user license, the idea here is to harmonize the pricing model between cloud based flows (#DPA) and robotic process automation (#RPA).
The big (if not biggest) challenge when it comes to Power Automate licensing is that by definition the act of automating a process will reduce the amount of manual work done by users. Great! Except that #Microsoft also needs to get revenue from their products. With the traditional Office style "per user" license this is a tricky equation, since using the product MORE could lead to needing LESS direct users for the product.
Unlike in Azure, you (mostly) don't pay for #PowerPlatform by usage capacity but per each seat. If the automation removes the need for a person to fill that seat, there needs to be another way to align cloud resource consumption with the money that customers pay to MS.
"Power Automate per flow" has been the license that allows you to run a specific process, use premium connectors in it, and to NOT require every employee benefiting from it to have a Power Automate licese. It's cost is $100 per cloud flow, but there's a minimum purchase of 5, meaning the pricing starts at $500 per month.
"Power Automate Process" is the new license that covers both cloud flows as well as RPA bots. There's no minimum quantity, yet the price of each unit is higher: $150.
I had to do a lil' Excel exercise to see how this maps out to actual cost for an organization that needs to run CLOUD flows with premium features. That's what the vast majority of real-life use cases we've run into are about, after all. RPA is a game of its own and there's definitely a place for it, but it's hardly a #citizendeveloper primary scenario.
Once you need 4 or more cloud flows to be licensed, the old "per flow" model is cheaper. There doesn't seem to be any incentive for customer to switch to the new "Process" license. Even if you do need some unattended RPA bots, you're better off licensing those with a different license. As long as MS keeps offering "per flow" SKU, of course...
What are your thoughts? Am I missing some obvious benefit that the new license option would provide for API based automation scenarios?
Detailed Pricing Analysis
The majority of real-life use cases involve running CLOUD flows with premium features. RPA has its place but is not typically a primary scenario for a citizen developer. We found that once you need 4 or more cloud flows licensed, the older "per flow" license becomes more cost-effective compared to the new "Process" license.
Learn about "Power Automate Process" is a new SKU that has been launched in August 2023
The "Power Automate Process" SKU has been launched in August 2023 and is designed to harmonize the pricing model for cloud-based flows (DPA) and robotic process automation (RPA). This SKU is available for $150 per unit, with no minimum purchase amount. The existing "Power Automate Premium" license is a per user license, which can be a challenge when it comes to Power Automate licensing since using the product more can lead to needing fewer direct users for the product.
The "Power Automate per flow" license allows users to run a specific process, use premium connectors in it, and not require all users benefiting from it to have a Power Automate license. This license is $100 per cloud flow, but requires a minimum purchase of 5, meaning the pricing starts at $500 per month. For organizations that need to run cloud flows with premium features, it is important to consider the costs associated with both the "Power Automate Process" SKU and the "Power Automate per flow" license. It is also important to consider the different scenarios for RPA bots and the cost associated with them.
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Keywords
Power Automate Licensing, Cloud Flows, RPA, Power Platform, Power Automate Premium, Power Automate Per Flow