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Nick_Beacroft's avatar
Nick_Beacroft
Iron Contributor
Sep 04, 2025
Solved

Licensing a Dataverse environment for external users

Looking for some advice and opinions please.

This is for a standalone Dataverse environment. Not Dynamics 365, or Power Apps, or Power Pages.

The question is about using a Dataverse environment with the native Dataverse web APIs, where a portal is developed (not Power Pages) that allows the external users to interface (read/write) data.

My opinion is that because this is not Dynamics 365 and Power Pages are not being utilised to facilitate the access then there is no requirement for user (D365, Power App, or Power Pages capacity) licensing.  I would still need Dataverse capacity licenses, but that is all.

Appreciate any thought and insights.

Thanks,

Nick

  • I would agree on your notion, that no Power Apps / D365 license is required. 

    The Power Apps / D365 licenses are only needed for using the Power/D365 services. But since the users don't use the service and only consume Dataverse capacity. Licensing the Dataverse capacity should be sufficient in this case. 

    I agree, no user license is required here. 

5 Replies

  • MartijnElfers's avatar
    MartijnElfers
    Bronze Contributor

    I would agree on your notion, that no Power Apps / D365 license is required. 

    The Power Apps / D365 licenses are only needed for using the Power/D365 services. But since the users don't use the service and only consume Dataverse capacity. Licensing the Dataverse capacity should be sufficient in this case. 

    I agree, no user license is required here. 

    • Anthony_Wenzel_88's avatar
      Anthony_Wenzel_88
      Copper Contributor

      What do you mean by "licensing the Dataverse capacity" - does that just mean licensing for sufficient storage capacity to hold the data? I was recently told by a MS rep: "There is no free external user allowance for Dataverse when using custom apps. Since the external users are using custom IIS apps that connect to Dataverse, they fall under Power Apps licensing." I would tend to agree with your comment, but this MS rep seems to be saying the opposite.

      • MartijnElfers's avatar
        MartijnElfers
        Bronze Contributor

        [..] does that just mean licensing for sufficient storage capacity to hold the data?

        To my knowledge, yes. As the users are not using any other Microsoft service (eg. Power Apps) besides Dataverse. 

         

        "There is no free external user allowance for Dataverse when using custom apps. Since the external users are using custom IIS apps that connect to Dataverse, they fall under Power Apps licensing."

        That's an interesting comment, which I never heard before. This is also not listed as such in the Licensing Guide. It suggest to get the MS rep to provide official statement on the matter. It would not be the first time that MS reps provide incorrect licensing advice though :P 

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