Why Your Next Business App Doesn't Need to Cost a Million Dollars (or Take 18 Months to Build)
- stephen03058
- Oct 16
- 10 min read
I had a fascinating conversation with a commercial fitouts studio a few months back that perfectly captures something I've been trying to explain to business leaders for ages.
We were discussing ways to automate their project management workflows: document tracking that involves more spreadsheets than anyone should admit to, and communication that happens across seventeen different platforms (okay, maybe not seventeen, but it felt like it).
As we mapped out their needs, the number of automation flows started stacking up. At a certain point, I asked the question that changes everything: "Have you considered having a custom application built instead of piecing together dozens of individual workflows?"
Their response stopped me in my tracks.
"We got a ballpark quote from a development company. They said it would cost over a million dollars and take more than a year to build."
My response "We could build that for less than $100,000."
Eyebrows went up, tone of the conversation changed.
The Tale of Two Development Approaches
Here's what most business leaders don't realise: there are fundamentally different ways to build custom business applications in 2025, and the cost difference isn't just significant – it's staggering.
Traditional full-stack development (the million-dollar option) involves building everything from scratch. Backend infrastructure, frontend interfaces, databases, authentication systems, API integrations – the whole enchilada. It's like building a house by first creating your own bricks, then inventing concrete, then hand-carving every piece of timber.
Power Platform development (the hundred-thousand-dollar option) is more like building with LEGO Technic. The fundamental building blocks already exist, they're engineered to work together, and you're assembling them in clever ways to create exactly what you need. But unlike LEGO, these blocks can handle enterprise-scale operations and integrate seamlessly with the systems you already use.
Why Traditional Development Costs What It Does
Let's be clear: I'm not here to throw shade at traditional software development. There are absolutely scenarios where it's the right choice. But understanding why it costs what it does helps explain why there's often a better alternative.
The Development Team
A full-stack development project typically requires:
Frontend developers (the people who make things look pretty and work smoothly)
Backend developers (the wizards who handle data and logic behind the scenes)
Database specialists (because data storage is surprisingly complex)
DevOps engineers (keeping everything running and secure)
UI/UX designers (making sure humans can actually use what you're building)
Project managers (herding all these cats in the same direction)
Quality assurance testers (finding all the ways things break)
That's a lot of expensive humans spending a lot of time on your project. At commercial rates, you're easily looking at $200,000+ just in labour before you write a single line of code.
The Infrastructure
Traditional applications need somewhere to live. This means:
Cloud hosting costs (and they add up faster than you think)
Database licensing and maintenance
Security certificates and compliance frameworks
Backup and disaster recovery systems
Monitoring and alerting infrastructure
The Timeline
Building everything from scratch takes time. Lots of it. A year-long project means:
Your business needs are changing while you're building
Your budget is tied up with nothing to show for it
Your team is working around the problem instead of solving it
Your competitors might beat you to market
Where Power Platform Changes the Game
Microsoft Power Platform (specifically Power Apps for building applications) flips this entire model on its head. Instead of building every component from scratch, you're working with pre-built, enterprise-grade infrastructure that's already been tested by millions of users globally.
What You Get Out of the Box
When you build on Power Platform, you automatically get:
An application that stays in your Microsoft 365 and under your control
Authentication and security (already integrated with your Microsoft 365 accounts)
Data storage (Dataverse is basically a ready-made enterprise database)
Mobile responsiveness (your app works on phones without extra development)
Integration capabilities (connects to hundreds of services without custom API work)
Hosting and infrastructure (Microsoft handles all the backend complexity)
Compliance frameworks (built-in adherence to security standards)
The Development Reality
Instead of needing that entire team I mentioned earlier, you typically need:
A skilled Power Platform developer (or two for larger projects)
A business analyst to map requirements
Subject matter experts from your business (you know your processes better than anyone)
That's it. Three to five people instead of eight to twelve.
The Timeline Shift
What takes twelve months in traditional development can often be built in three to six months with Power Platform. Why?
No time spent building basic infrastructure
Rapid prototyping means you see working versions early
Changes are faster to implement (no recompiling entire applications)
Testing cycles are shorter
Deployment is simpler
When Power Platform Makes Perfect Sense
Power Platform shines brightest when you're building:
Internal Business Applications
If your users are your employees and the app needs to connect to your existing Microsoft 365 environment, Power Platform is basically purpose-built for this. Project management tools, approval workflows, data collection systems, reporting dashboards – these are Power Platform's sweet spot.
Process-Driven Applications
Applications that follow defined business processes (like our fitouts studio's project management needs) work brilliantly because Power Apps excels at turning workflow logic into intuitive interfaces.
Integration-Heavy Solutions
When your app needs to talk to multiple systems (SharePoint, SQL databases, external APIs, legacy systems), Power Platform's connector library means you're not building and maintaining custom integrations from scratch.
Applications That Need to Evolve
Business needs change. Power Platform applications are significantly easier to modify and extend than traditionally-coded solutions. When you need to add a new feature or adjust a workflow, you're talking days instead of weeks.
The Reality Check: When Traditional Development Wins
Let's be honest about where Power Platform has limitations:
Consumer-Facing Applications
If you're building something for the general public – a mobile app in the app stores, a public-facing website with complex user interactions – traditional development is probably your better bet. Power Platform is fundamentally designed for internal business use cases.
Highly Specialised Performance Needs
If you need microsecond response times, handle millions of simultaneous users, or require very specific technical capabilities, traditional development gives you more control over performance optimisation.
Completely Custom Experiences
If your vision requires a totally unique interface that breaks all the conventional patterns, you'll fight against Power Platform's templates and design system. Traditional development gives you unlimited creative freedom (for better or worse).
Zero Microsoft Dependency
If your business operates entirely outside the Microsoft ecosystem and intends to stay that way, Power Platform probably doesn't make sense. You'd be paying for Microsoft 365 licenses just to use the development platform.
The Cost Breakdown Reality
Let's talk actual numbers using a real-world scenario similar to that fitouts studio.
For context: they have 50 staff members who need access to one rather complex project management application that uses Dataverse and connects to their existing systems through premium connectors.
Traditional Development Estimate:
Development team (12 months × $30,000/month average): $360,000
Infrastructure setup and first year: $40,000
Design and UX work: $50,000
Project management and coordination: $80,000
Testing and quality assurance: $60,000
Documentation and training: $30,000
Contingency buffer (because projects always run over): $180,000
Total: $800,000 - $1,200,000
Power Platform Development Estimate:
Here's where the licensing conversation gets important, because this dramatically affects the total cost.
Development Costs:
Power Platform developer (4 months × $15,000/month): $60,000
Business analysis and requirements (2 months): $20,000
Training and change management: $15,000
Contingency buffer: $20,000
Development Total: $115,000
Licensing Costs (Annual):
Now, if you're already on Microsoft 365 Business Standard or higher, you've got limited Power Apps capabilities included. But here's the reality: for a proper custom business application using Dataverse and premium connectors, you need premium licensing.
The good news? For a single-app scenario like this, Power Apps offers a "per app" licensing option that's significantly more affordable than the "per user" premium license.
Power Apps Per App License (Most Cost-Effective for Single App):
50 users × $5/user/month = $250/month or $3,000/year
This gives each user access to your custom app with full capabilities including premium connectors and Dataverse
Alternative: Power Apps Premium (If They Need Multiple Apps):
50 users × $20/user/month = $1,000/month or $12,000/year
Makes sense if users need 4+ apps (at which point it becomes more cost-effective than stacking per app licenses)
For Our Fitouts Studio Example:
Since they only need one application, the per app license is the clear winner.
Year One Total Cost (Power Platform):
Development: $115,000
Licensing (Year 1): $3,000
Total: $118,000
Year Two Total Cost:
Licensing only: $3,000
Minor enhancements (estimated): $5,000-10,000
Total: $8,000-13,000
The Traditional Development Alternative?
They'd still be waiting for the requirements document to be signed off, having spent somewhere between $800,000 and $1,200,000 with nothing to show their team yet.
The Hidden Costs People Forget
Traditional Development:
Ongoing hosting and infrastructure: $3,000-5,000/month
Maintenance and support: $5,000-10,000/month
Security patches and updates: Included in maintenance (hopefully)
Feature additions: New project quotes every time
Power Platform:
Hosting and infrastructure: Included in Microsoft 365
Security and compliance: Microsoft handles it
Platform updates: Automatic
Feature additions: Significantly faster and cheaper to implement
What About Growth?
Let's say the fitouts studio grows to 100 users over two years:
Per App Licensing:
100 users × $5 = $500/month or $6,000/year
Still incredibly affordable for a business-critical application
Traditional Development:
Same hosting costs (or higher as usage scales)
Same maintenance burden
Potentially infrastructure upgrades as user numbers increase
The Break-Even Analysis
Here's what really matters: at what point does the Power Platform approach become more expensive than traditional development?
The answer: it almost never does for internal business applications.
Even if you eventually needed the Premium license for all users ($12,000/year for 50 users), you'd need to run that for over 60 years before you spent what the traditional development would have cost upfront.
And that's assuming traditional development had zero ongoing costs (which is laughable).
The Real ROI Story
The fitouts studio isn't just saving money on development. They're getting:
A working prototype in 6 weeks instead of 6 months
The ability to iterate based on real user feedback during development, not after
A complete solution in 4-6 months instead of 12-18 months
The flexibility to add features quickly as needs evolve
No vendor lock-in with a bespoke codebase that only one dev shop understands
That time-to-value difference? It's worth more than the cost savings.
While their competitors are still gathering requirements for their million-dollar project, our fitouts studio has already automated their workflows, eliminated bottlenecks, and freed their team to focus on actual project delivery instead of administrative chaos.
Making Your Decision
When evaluating whether Power Platform makes sense for your project, ask yourself:
How many users need access? (Affects per app vs premium licensing decision)
How many apps do they need? (One app = per app licensing is ideal)
What's the value of time-to-market? (Getting something working in months vs years)
How often do your requirements change? (More change = more value in low-code flexibility)
What's already in your Microsoft ecosystem? (Already paying for Microsoft 365? You're halfway there)
The million-dollar question isn't whether you can afford Power Platform development. It's whether you can afford to spend a million dollars and wait 18 months when there's a better alternative sitting right there in your existing Microsoft subscription.
The Skills Gap Nobody Talks About
Here's something interesting: finding good Power Platform developers is currently easier (and cheaper) than finding senior full-stack developers. The traditional development talent market is incredibly competitive, especially for experienced developers who can architect complex systems.
Power Platform skills, while increasingly in demand, are still more accessible. Many existing IT professionals are upskilling into Power Platform development, and the learning curve is genuinely less steep than traditional programming languages.
This doesn't mean Power Platform development is easy – it absolutely requires skill, experience, and problem-solving ability. But the barrier to entry is lower, which means more available talent at more reasonable rates.
The Licensing Conversation You Need to Have
Power Platform isn't "free" just because you're not hiring a massive dev team. You need to understand the licensing model.
Basic Power Apps License (included in Microsoft 365)
Great for simple apps
Limited to standard connectors
Perfect for getting started
Power Apps Premium (around $20/user/month)
Needed for custom business applications
Unlimited premium connectors
Access to Dataverse
This is usually where you land for proper business apps
Power Apps per App (around $5/user/month per app)
Pay for specific apps rather than unlimited access
Cost-effective if users only need one or two applications
For our fitouts studio with 50 users needing the application, we're looking at roughly $12,000-24,000 annually in licensing. Still significantly cheaper than traditional development, and that license gives them access to the entire Power Platform ecosystem, not just the one app.
The Hybrid Approach Nobody Expects
Here's a secret: you don't always have to choose one or the other exclusively.
Some of our clients start with Power Platform to prove the concept and get something working quickly, then selectively rebuild specific components with traditional development where it makes sense. You might use Power Apps for 80% of your application while having custom-coded APIs handling specific complex calculations or integrations.
This phased approach means you're getting value immediately while still having the option to optimise specific areas later. It's like buying a house you can actually live in while you renovate, rather than camping in an empty lot for a year while construction happens.
The Questions You Should Be Asking
If you're considering custom application development for your business, start by asking your potential development partners:
"Have you considered Power Platform as an option, and if not, why?"
"What would this project look like using low-code tools versus traditional development?"
"What's the risk if our requirements change mid-project?"
"How quickly can we get something working that we can actually test?"
"What happens to our investment if we need to pivot?"
The answers will tell you a lot about whether they're recommending technology that actually suits your needs or technology that suits their business model.
Final Thoughts
The commercial fitouts studio thought their options were "spend a million dollars" or "continue drowning in manual processes." They didn't realise there was a middle path that cost 90% less and delivered 80% faster.
How many other businesses are in the same boat? How many brilliant application ideas are sitting in the "too expensive" pile when they could actually be built and running in months rather than years?
The goal isn't to work harder or spend more. It's to work smarter with the tools that actually match your needs and budget.
And sometimes, that means the app you thought would cost a million dollars can actually be built for less than a senior developer's annual salary.
Ready to explore what's possible for your business without the million-dollar price tag? Let's have a conversation about what you're trying to achieve and whether Power Platform might be the practical path forward you didn't know existed.
Want to learn more about Power Platform and automation? We run hands-on workshops where you build real solutions with the tools you already own. Check out "Beyond the AI Hype: The Modern Professional" for practical training that cuts through the noise.
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