Websites11 min read

Custom Internal App vs Power Apps: A 5-Year Cost Comparison for SMEs in 2026

Mohamed Bah·Fondateur, Kolonell
November 1, 2026
Share:
Custom Internal App vs Power Apps: A 5-Year Cost Comparison for SMEs in 2026

Custom Internal App vs Power Apps: A 5-Year Cost Comparison for SMEs in 2026

Websites

The verdict in three sentences

For a 150-employee SME, Power Apps costs roughly USD 180,000 in licences over 5 years when every user needs premium connectors, before a single line of development is paid for. A custom internal app requires a more visible upfront investment, but its 5-year total cost is usually 3 to 6 times lower once you pass 60 to 80 active users. The right choice depends on three measurable variables: active user count, dependency on Microsoft 365 and the complexity of your business rules.

What Power Apps really costs for 150 users

Power Apps is attractive because it starts fast: an Excel-savvy employee can build a leave or purchase request form in a few days. The trap appears when the app becomes serious. As soon as it connects to a SQL database, an ERP, Dataverse or an external API, it switches to premium connectors, and every user then needs a paid licence. The 2026 public reference price is about USD 20 per user per month, depending on the plan, before negotiated discounts.

Cost item (2026 estimate)Assumption5-year cost
Power Apps premium licences150 users × USD 20 × 60 monthsUSD 180,000
Extra Dataverse capacity10 to 20 GB above quotaUSD 6,000 to 12,000
Power Platform developer (freelance or IT services firm)40 to 60 days at USD 450 to 650USD 18,000 to 39,000
Governance and environments (test, production)internal admin 2 days/monthUSD 15,000 to 25,000
Yearly enhancements10 to 15 days per yearUSD 22,000 to 48,000
Estimated totalUSD 241,000 to 304,000

Figures vary with your Microsoft agreement, but licences alone represent 60 to 75% of the total. They grow with every hire, and they leave you with no asset: stop paying and the app stops.

Other limits to document before signing:

  • API request limits per user per 24 hours, which slow down bulk processing.
  • Query delegation: beyond 500 to 2,000 rows, some filters no longer run server-side and return incomplete results.
  • Mobile experience fine for a form, painful for a rich dashboard or an offline workflow.
  • Microsoft 365 lock-in: Entra ID identities, SharePoint or Dataverse storage, Power Automate flows. Leaving the ecosystem means rebuilding everything.

What a custom internal app costs

A custom web app (for example Next.js, PostgreSQL and authentication tied to your Microsoft directory through SSO) is priced by scope, not by headcount. Whether 150 or 400 employees use it, the build cost stays the same. Kolonell's 2026 grid is below; hosting, specific integrations and number of environments are set in the quote.

ComplexityExample scopeBuild budgetTimeline
Simpleinternal requests, 2-level approval, dashboard2,500,000 to 4,000,000 FCFA (EUR 3,810 to 6,100)2 months
Mediummultiple workflows, Microsoft SSO, notifications, exports4,000,000 to 7,000,000 FCFA (EUR 6,100 to 10,670)2 to 3 months
ComplexERP integration, advanced rules, API, audit trail7,000,000 to 15,000,000+ FCFA (EUR 10,670 to 22,870+)3 to 4 months
Basic maintenancefixes and security updates35,000 FCFA per month (EUR 53)ongoing
Standard maintenanceBasic + small enhancements75,000 FCFA per month (EUR 114)ongoing
Premium maintenanceStandard + stronger SLA120,000 FCFA per month (EUR 183)ongoing

You own the source code, hosting can sit on your premises or in a European cloud, and the app keeps running even if you change provider.

5-year comparison: where the tipping point is

CriterionPower Apps premiumKolonell custom build
Cost tied to user countyes, USD 20 per person per monthno
5-year total, 150 usersUSD 241,000 to 304,000 (estimate)EUR 21,650 to 33,850+ excluding hosting (complex build + Premium maintenance)
Time to first use3 to 8 weeks2 to 4 months
Code ownershipnoyes
Performance on large volumeslimited by delegation and quotassized for your volume
Vendor dependencystrong (Microsoft 365, Dataverse)low

The tipping point sits around 50 to 80 premium users. Below that, or for a temporary tool, Power Apps remains rational. Above it, for an app meant to last more than 3 years, custom almost always wins. A sound approach is often to prototype the workflow in Power Apps for 4 weeks, then build the durable version from the prototype your users have validated.

Mini case study

Need a professional website?

Kolonell builds websites that attract clients, optimized for the Sénégalese market. Free quote in 2 minutes.

Prefer a call back?

Leave your WhatsApp number and a Kolonell expert will get back to you within 1 business day. Free, no strings attached.

You are :

Sarah, IT director of a 150-employee manufacturing SME near Lyon, must replace an internal request process (purchasing, exceptional leave, IT equipment) currently run through email and a shared spreadsheet. Her Microsoft partner proposes Power Apps with Dataverse.

  • Power Apps option: 150 × USD 20 × 12 = USD 36,000 per year in licences, about EUR 33,100 (USD 1 ≈ EUR 0.92, rough estimate). Over 5 years: EUR 165,600 in licences plus about EUR 30,000 of development and enhancements, so close to EUR 195,000.
  • Custom option: medium-complexity app with Microsoft SSO and ERP export at EUR 10,670 at the top of the range, plus Premium maintenance at EUR 183 per month for 60 months (EUR 10,980), so about EUR 21,650 excluding hosting, priced in the quote.

The gap exceeds EUR 170,000 over 5 years. Even adding hosting and a major enhancement in year 3, the custom build remains more than 5 times cheaper. Sarah keeps Microsoft 365 for email and Teams and simply plugs the app into Entra ID for single sign-on.

FAQ

Can a custom app keep Microsoft sign-in?

Yes. The app uses Entra ID (formerly Azure AD) for SSO, so staff log in with their usual account. This integration typically takes 2 to 4 development days, included in the quote.

Is Power Apps free with Microsoft 365?

Only for standard connectors (SharePoint, Outlook, Excel). Once a premium connector or Dataverse is used, every user needs a paid licence, around USD 20 per month in 2026.

How long does a custom internal app take to deliver?

Plan on 2 months for a simple scope and 3 to 4 months for an app integrated with an ERP. A first usable version usually ships after 6 to 8 weeks.

What happens if we change provider?

You own the source code and database. A competent provider can take over a documented app in 5 to 10 days of onboarding, whereas leaving Power Apps means a near-total rebuild.

Should we drop low-code entirely?

No. For fewer than 30 users or a tool needed for a few months, low-code remains relevant. It also works very well as a prototype before a durable build.

Let's scope your project. Send us your list of internal requests and your user count, and we will price the scope with a 2 to 4 month plan. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.

Tags:#Power Apps#low-code#internal app#comparison#SME#total cost#custom build
Share:

Mohamed Bah

Fondateur, Kolonell

Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.