Those first SaaS services also were in themselves quite simple. Oh bliss! Isn’t this exactly the way the cloud should be sold? In the initial wave of SaaS business applications, we saw a return to the simplicity of just paying a fixed fee like $50 per user and getting all of that server stuff covered for you. The networked computing era extended the pricing models to server software that wasn’t always purely a per-user play, as the complexity and robustness of your back-end services determined how expensive that side was. Of course they’ve been a key component ever since the personal computing revolution started with PCs running DOS, then Windows and many productivity applications like those found in the Office suite. USL, user subscription license, has been the dominant model for pricing applications from Microsoft in the online services era. Rather than speculating about what the exact policies will be, I will instead try to set this new consumption based licensing into context with what’s happening in the Microsoft Cloud. There have already been a lot of blog posts around this topic and I’m not expecting the debate to die out anytime soon. You should keep an eye on these documentation pages, since further information will be made available, based on the incoming questions from customers. The finer details of the new model are outlined in the PowerApps and Microsoft Flow licensing FAQs for October 2019 as well as the Requests limits and allocations pages over on. Organizations that require additional capacity for heavy usage scenarios will be able to purchase add-on capacity and assign it to specific users or processes.” Updates to Microsoft 365, Dynamics 365, PowerApps and Flow Licensing These capacity limits should not impact standard or reasonable usage of PowerApps or Flow. “A single, integrated approach for daily capacity limits will be implemented to help maintain a consistent quality of service for customers with PowerApps and Flow plans. In their August 29 blog post, Microsoft stated the following: While the existence of limits on how much load one can place on the online service are not an entirely new construct, it’s the first time that the amount of API calls available is directly tied to the type of licenses bought.
There’s another aspect in the coming licensing updates that has also caused a lot of concern among partners and customers: the API call limits. On the topic of Dynamics 365 and PowerApps licensing changes coming in October 2019, I earlier wrote about the biggest change in how Microsoft is separating the first party applications and the underlying platform in the new Per App pricing model.
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