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There are quite many End Users (Internal, External & Guest) for the SharePoint Online Site and some are licensed to E1, E3, plans but most of them are guest/external users.

We are planning to :

  • Customize SharePoint Online List Forms via Power Apps
  • Create Custom Apps based on Multiple SharePoint Lists and Embed them inside Modern Pages.

Do we need to procure Power App licenses for all of the End Users (Internal, Guest & External) even though they are just performing CRUD (Create, Read, Update, Delete) Operations on Data from Power Apps form. And most of the End Users, say 90% will never create or share any Power App, they just use it.

Technically as per Microsoft, we need to procure a PowerApp License for all of the End Users either via E1, E3, E5, Office Plans, or via individual Power App plans.

Please suggest, what could be the best way to mitigate Power Apps Licensing cost?

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(Also just a note I would have liked to add this as a comment to one of the other answers but I only have 1 Rep)

We have been trying to solve this riddle ourselves and according to Microsoft Documentation last updated in July 2020 the answer appears to be that it should work with Guest Users without a license.

Do I need a Power Apps license to create or use custom list forms?

A: Guest users can use custom forms. To create custom forms, you need an Office 365 plan that includes Power Apps.

Q: What happens when guest users access a list that has a custom form?

A: As long as the guest users have permission to access the list, they’ll be able to access the custom form.

Source

That being said a colleague has been testing this on one of our Tenants unsuccessfully, but is able to get it to work on another Tenant successfully so we are continuing to look into it.

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I’ve just tested on a guest user that cannot be assigned with PowerApps license. I assign the user Edit permission in a list and the user has no trouble performing Create, Read, Update and Delete actions using the customized form.

And of course, even if the guest user has only View Only permission in this list, the PowerApps customized form is still visible to him. Customizing the form is not an option. Same test result came with internal user.

So you don’t need to procure Power App licenses for all of the End Users (Internal, Guest & External) but they can still use the PowerApps form in SharePoint lists.

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    Have you tested it on the Production Tenant or Trial/Test Tenant? I checked this behavior with Microsoft and they confirmed that it won't work in Production Tenant. As it is not confirmed by Microsoft then we can't rely on this, it can be restricted in the future. Sep 9 '20 at 3:10
  • @xPlorerM365 ok sorry about that. I'm indeed using trial/test tenant. If that's what Microsoft confirms then it surely won't work in production environment. Sep 9 '20 at 3:47
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The licencing is a big headache with power platform. It's true you will have to assign a PowerApps licence for users accessing powerapps even if it's a list that has been modified using PowerApps. You user will see a login prompt. I am not able to find a Microsoft post directly saying this but I have already experienced similar thing.

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  • As of April 2021 (not sure about the older cases), we can open any customized list form without a license. I have just tested it on a few users. So, that's good news. Apr 12 at 18:22

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