Standard vs Premium vs Custom Connectors 🔌

A connector is a wrapper around an API that lets your apps and flows talk to a service. Its category, standard, premium or custom, decides mainly one thing: which license your users need to run it.

TL;DR: Standard connectors (SharePoint, Outlook, Teams, OneDrive) are covered by seeded Microsoft 365 licensing. Premium connectors (SQL Server, Azure, Dataverse, Dynamics 365, HTTP, custom connectors) require a standalone Power Apps or Power Automate license. Custom connectors are ones you build yourself for an API that has no ready-made connector, and they always count as premium.

flowchart TD
    A["Which connector do you need?"] --> B{"Does Microsoft already<br/>provide one?"}
    B -->|"No"| C["Custom connector<br/>always Premium"]
    B -->|"Yes"| D{"Common M365 service<br/>(SharePoint, Outlook, Teams)?"}
    D -->|"Yes"| E["Standard<br/>seeded with Microsoft 365"]
    D -->|"No, e.g. SQL, Azure, Dataverse, HTTP"| F["Premium<br/>needs Power Apps/Automate license"]

At a glance

	Standard	Premium	Custom
What it is	Prebuilt, common M365 services	Prebuilt, enterprise/data services	You build it yourself
Examples	SharePoint, Outlook, Teams	SQL Server, Azure, Dataverse	Your REST API
License	Seeded (Microsoft 365)	Premium plan required	Premium (same as premium)
Who builds it	Microsoft	Microsoft	You / your org

Standard connectors

🔸 Standard connectors cover common productivity and business scenarios: SharePoint, Outlook, Teams, OneDrive for Business, Planner, and many non-Microsoft services.

🔸 They’re available to Microsoft 365 users through seeded licensing, so most makers can use them without buying a standalone Power Platform plan.

Premium connectors

🔸 Premium connectors reach enterprise and data platform services, for example SQL Server, the Azure family (Blob, Queues, Table, SQL, Service Bus, Event Hubs), Dataverse, Dynamics 365, Business Central and the generic HTTP action.

🔸 A standalone Power Apps or Power Automate plan license is required to access all premium, on-premises, and custom connectors.

🔸 Several SQL, Azure and Dynamics 365 connectors are explicitly classified as premium, even though some once appeared standard.

Custom connectors

🔸 When there’s no prebuilt connector for the API you need, you build a custom connector: you describe the API (host, paths, operations, authentication) so Power Apps and Power Automate can call it like any other connector.

🔸 Custom connectors are always treated as premium, so end users of an app or flow that uses one need a premium license.

🔸 Reach for a custom connector when you have a REST API (internal service, partner API) that isn’t already covered. Otherwise prefer an existing connector.

Licensing: the practical rule

🔸 Using only standard connectors in your app or flow means a seeded Microsoft 365 entitlement can be enough.

🔸 Adding any premium, on-premises (on-premises data gateway) or custom connector means every user needs a standalone Power Apps or Power Automate premium license.

🔸 A single premium connector upgrades the whole app or flow to premium for licensing purposes, so plan for it early.

⚠️ Watch out

🔸 Dataverse and the HTTP action are premium. Building on Dataverse or calling raw HTTP means premium licensing for your users, so budget for it.

🔸 Custom equals premium. A custom connector doesn’t avoid premium licensing, it is premium.

🔸 Connector classification can change. Microsoft has reclassified some SQL, Azure and Dynamics 365 connectors as premium, so check the current connector reference before you commit.

🔸 Watch out for multiplexing. Routing many users through a single service account, shared connection or a flow that reduces the apparent number of people accessing a premium connector doesn’t remove the licensing requirement. Microsoft’s licensing terms require every user whose data is being processed to be appropriately licensed, not just the one account making the call.

🛠️ FAQ

Is SharePoint a premium connector? No. SharePoint, Outlook, Teams and OneDrive are standard connectors covered by Microsoft 365 licensing.

Does using SQL Server need a premium license? Yes. The SQL Server connector is premium, so users need a standalone Power Apps/Power Automate plan.

Do custom connectors need premium? Yes. Custom connectors are treated as premium, the same as premium connectors.

When should I build a custom connector? When the API you need has no existing connector. If a standard or premium connector already exists, use it instead.

Can I avoid premium licenses by running everything through one service account? No. That’s what Microsoft calls multiplexing, and it doesn’t reduce the number of users who need to be licensed. If the data ultimately serves 50 people, all 50 need appropriate licenses, even if only one account technically makes the connector call.

🔗 Related

🔸 Power Automate flow types, where connectors run.

🔸 Dataverse vs SharePoint, standard vs premium data stores.

🔸 All Power Automate tips · Knowledge base overview

Connector classification and licensing reflect Microsoft Learn at time of writing. Always confirm the current status in the Microsoft connector reference and the Power Platform Licensing Guide.