Multiplexing in Power Platform Licensing: The Easy Approach
Navigating Microsoft Power Platform licensing can feel overwhelming, especially when technical terms like "multiplexing" come into play. But don’t worry—this guide is all about making it easy. We'll break down what multiplexing really means, why it matters, and how to stay compliant. Plus, we’ve included a helpful video from Microsoft MVP Sean Tabor to bring the concept to life.
What Is Multiplexing, Really?
In Microsoft licensing terms, multiplexing refers to when an organization uses middleware, automation, or shared services to indirectly access data or services on behalf of multiple users—typically with the aim of reducing the number of licenses needed. However, here’s the critical part: using multiplexing does not reduce your licensing requirements.
So, even if your system has a single “service account” doing all the work in Power Platform or Dynamics 365, if it’s delivering data to ten users, all ten still need proper licensing. It’s all about who benefits, not just who clicks the button.
Microsoft says: "Multiplexing does not reduce the number of SLs (Subscriber Licenses) required to access Microsoft services." — Microsoft Licensing Brief: Multiplexing
Watch This: Multiplexing Explained by Sean Tabor
For a more visual and approachable explanation, check out this short and fun video from Sean Tabor, a Microsoft Business Applications MVP. He walks through common multiplexing examples in Power Platform and Dynamics 365, making the topic surprisingly enjoyable:
Sean uses whiteboards and real-world analogies to explain why shared accounts and automation bots don’t exempt users from licensing—and he does it in under 10 minutes.
How Multiplexing Shows Up in Real Life
To help put this into context, here are a few examples you might see in your organization:
Shared Service Accounts: If your entire department pulls data through one generic Power App login, every individual using that data still needs a license.
Automated Workflows: Say you’ve built a Power Automate flow that sends custom notifications or dashboards to 50 people. Even if the flow runs under a single account, the 50 recipients must be licensed.
Custom Portals or Middleware: If you use a custom-built application that aggregates information from Power Platform and serves it to multiple internal users, each of those internal users must be licensed—even if they never directly log in to Power Platform.
These indirect access points are still considered “use” under Microsoft’s terms.
What You Should Do: Best Practices for Compliance
Here are a few key takeaways to ensure you're not unintentionally out of compliance:
Audit Your Access Points: Review how users interact with Power Apps, Power Automate, and Dynamics 365—even if they’re not logging in directly.
Don’t Share Licenses: Avoid shared logins or service accounts unless they're strictly used for background processing and not replacing user access.
Know Your Audience: Any internal user that benefits from information or services powered by the Power Platform likely needs a license.
Use Microsoft’s Tools: The Power Platform Licensing Guide breaks down all roles, scenarios, and exceptions in detail.
Keep It Simple: When in doubt, ask yourself: "Who benefits from this data or automation?" If the answer is a person, they probably need a license.
Keep It Clean and Compliant
Multiplexing isn't meant to trip you up—it's meant to ensure fairness in software usage. Microsoft wants to make sure that organizations are licensing based on real usage, not just direct clicks.
By understanding how multiplexing works and making sure each user is covered, you avoid audit issues and maintain trust with Microsoft. And thanks to clear guides and helpful experts like Sean Tabor, the topic doesn’t have to be complicated.
Whether you're a Power Apps builder, an IT admin, or just trying to stay on top of compliance, taking the time to understand multiplexing is a smart move.