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What is Microsoft Power Automate? Features, Pricing & Capabilities

Complete overview of Microsoft Power Automate: official features, pricing models, licensing options, and how it compares to other Microsoft automation tools.

Sarah Mitchell
Sarah Mitchell
Product Specialist at Kompound
Published: 21 July 2026 • Updated: 21 July 2026
5 min read
What is Microsoft Power Automate? Features, Pricing & Capabilities

What is Microsoft Power Automate? Features, Pricing & Capabilities

Microsoft has quietly built one of the most powerful automation platforms in the world. But many UK businesses don’t realise they might already own it.

Power Automate is Microsoft’s cloud-based workflow automation service. It’s part of the Power Platform family, alongside Power Apps and Power BI. If you’re using Microsoft 365, Dynamics 365, or Microsoft cloud services, you likely have access to Power Automate capabilities today.

This guide covers everything you need to know: what it actually does, what features matter most, pricing models, and how it fits into the broader Microsoft ecosystem.

What is Microsoft Power Automate?

Power Automate is a service that connects your business applications and automates workflow processes. Microsoft describes it as:

“A cloud-based service to automate repetitive tasks and get more productive by digitizing your business processes.”

Here’s what that means in practice:

You create “flows” (automated workflows) that:

  1. Trigger when something happens (email received, form submitted, deadline approaching)
  2. Act on that trigger (send notification, update database, create document)
  3. Respond automatically without manual intervention

Example: Customer Onboarding

Without automation: New customer signs contract → Sales team manually creates account → Email IT to provision access → Manual welcome email sent → Process takes 3-5 business days

With Power Automate: Contract signed → Automatically creates account → Sends welcome email → Provisions access → Triggers onboarding tasks → Customers get started same day

How Power Automate Fits in the Microsoft Ecosystem

If you use Microsoft 365 or Microsoft business applications, Power Automate is the glue that connects everything:

Power Automate connects:

  • Office 365 (Outlook, Teams, SharePoint, OneDrive)
  • Dynamics 365 (Sales, Customer Service, Field Service, Finance)
  • Microsoft 365 applications
  • 500+ third-party services (Salesforce, SAP, Oracle, Slack, Zendesk)
  • Your own legacy systems via custom connectors or RPA

Think of it as a central nervous system for your business applications.

Key Features of Microsoft Power Automate

1. Three Types of Flows

Automated Flows (Event-triggered)

  • Trigger: “When a new email arrives with an attachment”
  • Actions: Extract attachment, save to SharePoint, notify team
  • No manual intervention needed
  • Runs continuously, triggers automatically

Instant Flows (Cloud Flows / Button Flows)

  • Triggered manually by a user clicking a button
  • Example: Manager clicks “Approve Request” → Email sent, data updated, notifications sent
  • Useful when human judgment is needed but you want to streamline the action

Scheduled Flows (Time-based)

  • Runs on a schedule: daily, weekly, monthly, hourly
  • Example: “Every Friday at 9 AM, compile sales reports and send to leadership”
  • Common for reporting and regular maintenance tasks

2. 500+ Pre-Built Connectors

Power Automate connects to virtually every business application:

Microsoft Services:

  • Office 365 (Outlook, Teams, SharePoint, OneDrive, Excel)
  • Dynamics 365 (Sales, Customer Service, Marketing, Finance)
  • Power BI
  • Azure services

Popular Third-Party Services:

  • Salesforce
  • Slack
  • Zendesk
  • HubSpot
  • Jira
  • ServiceNow
  • Stripe
  • DocuSign
  • And 490+ more

Legacy Systems:

  • Connect via custom connectors
  • Use Desktop Flows (RPA) to automate systems without APIs

The breadth of connectors means you can automate almost any business process, even if it spans multiple systems.

3. Low-Code Flow Designer

Build complex workflows without coding:

  • Drag-and-drop interface: Add actions visually
  • Pre-built actions: Configure, don’t code (send email, update record, create file)
  • Expressions: For advanced users, write logic without full coding
  • Templates: Start from pre-built workflow templates
  • Guided design: Inline help and suggestions

A non-technical person can build a functional workflow in 15-30 minutes.

4. AI Builder Integration

Automate document-based processes using AI:

Document Processing:

  • Automatically extract data from invoices, receipts, forms
  • Read handwritten notes
  • Classify documents by type
  • Reduce manual data entry by 90%

Text Analytics:

  • Sentiment analysis (customer feedback)
  • Key phrase extraction
  • Language detection
  • Content classification

Predictions:

  • Predict customer churn
  • Forecast outcomes
  • Automated scoring

Example: Process 100 invoices per month. Manually extracting data takes 40 hours. AI Builder extracts it in seconds, with 98% accuracy.

5. Business Process Flows

Guide teams through structured processes:

  • Mandatory fields: Ensure data quality
  • Stage gates: Prevent moving forward without completing steps
  • Guidance and help: Inline instructions for each stage
  • Analytics: Track how long each stage takes, identify bottlenecks
  • Mobile support: Work on phone/tablet with process guidance

Example: Sales pipeline with stages (Qualify → Propose → Negotiate → Close). Each stage requires specific information. System prevents jumping steps.

6. Desktop Flows (RPA)

Automate legacy systems and screen-based work:

  • Record and playback: Record user actions, automate them
  • UI automation: Interact with any desktop application
  • Legacy system support: Works with systems that don’t have APIs
  • Attended/unattended: Run with or without a user watching

Example: Old manufacturing system doesn’t connect to anything. Desktop flow logs in, pulls data, copies to Excel, emails report. All automated.

7. Enterprise Governance & Security

Despite being low-code, Power Automate is enterprise-grade:

Data Protection:

  • Data Loss Prevention (DLP) policies
  • Encrypt sensitive data
  • GDPR and compliance-ready

Access Control:

  • Role-based permissions
  • Environment isolation
  • Audit logging
  • Security group integration

Compliance:

  • ISO 27001 certified
  • SOC 2 Type II
  • HIPAA ready
  • GDPR compliant

Center of Excellence:

  • Governance best practices
  • Flow lifecycle management
  • Monitoring dashboards

Official Microsoft Licensing & Pricing

This is where most people get confused. Here’s the reality:

What You Get for Free (Included in M365)

If you have Microsoft 365 Business Standard/Premium or Enterprise (E3/E5), each user gets:

  • Automated cloud flows (event-triggered)
  • Scheduled flows (time-based)
  • Basic connectors (Microsoft and premium connectors have limits)
  • Up to 300 runs per day
  • Basic AI capabilities

Cost: Included in your existing M365 licence. No additional cost.

What Requires Additional Payment

Per-Flow Licensing (if you need more capacity)

  • £10-15 per flow, per month (approximately)
  • Unlimited runs per flow
  • Access to premium connectors
  • Advanced AI capabilities

Process Advisor (mining and analytics)

  • Analyse process efficiency
  • Identify automation opportunities
  • £15-20 per user, per month

Attended/Unattended RPA Bots

  • Desktop flows for legacy systems
  • £50-150 per bot, per month (depending on region)

Real Cost Comparison

Scenario: Automate invoice processing (50 invoices/week)

Manual approach:

  • 1 FTE data entry admin: £28,000/year
  • Errors and rework: £5,000/year
  • Total: £33,000/year

Power Automate approach:

  • M365 licence: Already owned (included)
  • Per-flow licence (if needed): £150/year
  • AI Builder (invoice extraction): £300/year
  • Total: £450/year

Savings: £32,550/year

Payback period: 0.17 weeks (less than 2 days)

Power Automate vs Other Microsoft Automation Tools

Microsoft has multiple automation tools. Here’s which to use when:

Power Automate vs Logic Apps

Logic Apps:

  • Code-first approach
  • For developers building integrations
  • More control, steeper learning curve
  • Azure-focused

Power Automate:

  • Low-code, no developers needed
  • Business user-friendly
  • Easier to maintain
  • Better for business processes

When to use Logic Apps: You have developers who prefer coding. You need features not available in Power Automate.

When to use Power Automate: 95% of use cases. Start here.

Power Automate vs Power Automate Desktop (RPA)

Power Automate Desktop (RPA):

  • Automates legacy systems
  • Interacts with user interface
  • “Attended” mode (with user) or “unattended” (background)

Cloud Flows:

  • For modern applications with APIs
  • Cloud-native

When to use RPA: Automating old desktop systems, screen-based work, copying data between incompatible systems.

When to use Cloud Flows: Connecting modern applications, routing approvals, moving data between systems.

Implementation Timeline

One of Power Automate’s biggest advantages: speed to value.

Simple automation (copying data between systems, sending notifications)

  • Design: 1-2 hours
  • Build: 2-4 hours
  • Test: 2-4 hours
  • Deploy: 1 hour
  • Total: 1-2 days

Moderate complexity (approval workflows, document processing)

  • Design: 4-8 hours
  • Build: 8-16 hours
  • Test: 4-8 hours
  • Deploy: 2-4 hours
  • Total: 1-2 weeks

Complex automation (multi-system orchestration, advanced AI)

  • Design: 20+ hours
  • Build: 40+ hours
  • Test: 20+ hours
  • Deploy: 8+ hours
  • Total: 2-4 weeks

Compare that to custom development (months) or enterprise RPA tools (weeks).

Security & Compliance

Microsoft takes security seriously:

Data Protection:

  • Encryption at rest and in transit
  • Isolated environments
  • Automatic backup

Compliance:

  • GDPR compliant
  • HIPAA eligible
  • FedRAMP certified
  • ISO 27001 certified
  • SOC 2 Type II audited

Access Control:

  • Azure AD integration
  • Role-based access control
  • Multi-factor authentication support
  • Audit logging of all actions

Business Continuity:

  • 99.9% uptime SLA
  • Geographic redundancy
  • Disaster recovery built-in

Power Automate Integration with Power Platform

Power Automate is part of the Power Platform, which includes:

Power Apps (low-code app development)

  • Create business apps without coding
  • Integrate with Power Automate flows
  • Example: App collects customer data → Triggers Power Automate workflow

Power BI (business intelligence)

  • Visualise automation results
  • Alert when conditions are met
  • Trigger flows based on data thresholds

Power Virtual Agents (chatbots)

  • Build AI chatbots
  • Integrate with Power Automate flows
  • Example: Chatbot collects support request → Routes via Power Automate workflow

Using all three together creates a powerful automation and intelligence platform.

Key Questions Answered

Can We Build Custom Connectors?

Yes. If you need to connect to a system that doesn’t have a pre-built connector, you can:

  • Build a custom connector (if the system has a REST API)
  • Use RPA for systems without APIs
  • Use webhook connectors for custom integrations

Can We Use This for Compliance-Heavy Workflows?

Yes. Power Automate supports:

  • Audit logging (who did what, when)
  • Digital signatures (for approvals)
  • Compliance workflows (segregation of duties)
  • Retention policies

Example: Financial approval workflows with audit trails for regulatory requirements.

What’s the Learning Curve?

For business users: Low. Most features are visual, no coding required. 1-2 days to be productive.

For admins: Moderate. Understanding governance, security, environments takes longer.

For developers: Very low. If you code, Power Automate is trivial.

How Do You Manage Multiple Flows at Scale?

Center of Excellence toolkit:

  • Governance policies
  • Monitoring dashboards
  • Best practices documentation
  • Training materials
  • Approval workflows for new flows

Environment strategy:

  • Separate environments for dev, test, production
  • Policy enforcement per environment
  • Admin controls

Your Next Steps

Power Automate is production-ready, enterprise-proven, and accessible to business users. The question isn’t whether it’s capable—it’s which process should you automate first?

Ready to explore your automation opportunities?

Learn more about Power Automate capabilities including detailed features and real use cases.

Review how UK businesses are using it to eliminate manual work and scale.


Questions about your specific use case? Schedule a 30-minute consultation where we’ll discuss your processes and identify your highest-impact automation opportunity. Most UK businesses save £15,000-40,000 in the first year of automation.

Sarah Mitchell

About Sarah Mitchell

Product Specialist at Kompound

Expert in Microsoft business applications with extensive experience helping UK organisations transform their operations through Dynamics 365, Power Platform, and AI solutions.

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