Power Apps is Microsoft's low-code platform for building business applications that connect to your data — SharePoint, SQL Server, Dataverse, REST APIs, on-prem systems via gateway. IT gets pulled in when it's time to govern it, deploy it or fix what a business analyst built at 11pm on a Friday.

Here's what you need to know without reading 200 pages of documentation.

Canvas Apps vs Model-Driven Apps

Power Apps splits into two very different things:

Canvas apps give you a blank screen. You drag controls onto a canvas, write formulas (Excel-like syntax), and connect data sources. They look however you want. Good for simple task-specific tools — a form to log equipment faults, a checklist app for field techs.

Model-driven apps build themselves from a data schema. You define tables and relationships in Dataverse, and the app generates views, forms and navigation from that structure. Less flexible visually, far better for complex data models — think a lightweight CRM or asset management system.

The two share the same licensing and platform, but the skills don't transfer cleanly between them.

Licensing (The Part Nobody Reads Until It Costs Money)

Power Apps licensing changed significantly in 2023 and continues to evolve:

  • Microsoft 365 plans — include Power Apps access for SharePoint, Teams and other M365 data sources only
  • Power Apps Premium (per user, ~$20/month) — required for any app accessing Dataverse, SQL Server, custom connectors or on-prem data gateways
  • Pay-as-you-go — billed per app open, not per user license, via Azure subscription

If your users are only connecting to SharePoint lists, their M365 license covers it. The moment you add SQL Server, Dataverse or any custom connector, everyone touching that app needs a Premium license. Audit this before you build.

Dataverse vs SharePoint as a Backend

SharePoint lists are the default backend that makers reach for because they already have access. SharePoint works for simple, low-volume apps. It breaks under load, lacks proper relational constraints, and has row limits that bite you at the worst moment.

Dataverse is the proper backend — relational tables, row-level security, computed columns, relationships, business rules. The downside: it requires a Premium license and lives in your Power Platform environment, not SharePoint.

For anything beyond a basic form, use Dataverse.

What IT Needs to Govern

Left unmanaged, Power Apps environments multiply fast. Establish:

  • DLP policies — restrict which connectors makers can use (block external HTTP if you don't need it)
  • Environment strategy — separate Dev/Test/Prod environments per department or workload
  • Admin center access — Power Platform Admin Center shows all environments, apps and flows

For learning more on governance, the Microsoft Power Platform documentation is worth having on your desk if you're the person everyone calls when apps break.


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