Custom Development in Microsoft 365 vs. Power Platform: Making the Right Choice for Your Business Needs

June 27, 2023
9 min read

As businesses look to digitize their processes, they are faced with a decision between custom development in Microsoft 365 and using low-code/no-code platforms such as Power Platform. Both options have their pros and cons. Choosing the right one requires a clear understanding of the organization's needs, available resources, development lifecycle, costs, and licensing considerations.

Custom Development in Microsoft 365: Pros and Cons

Custom development in Microsoft 365 provides benefits but also comes with some considerations. Here are the pros and cons, along with the types of development that are possible.

Pros of Custom Development in Microsoft 365

Pros of custom development include:

  • Tailored solutions: Custom development allows you to create solutions specifically designed to meet your organization's unique requirements, ensuring a perfect fit for your business processes.
  • Enhanced productivity: Custom solutions can automate manual tasks, streamline workflows, and integrate disparate systems, leading to increased efficiency and productivity for your teams.
  • Seamless integration: By leveraging custom development, you can integrate your Microsoft 365 applications with other systems, databases, or external services, enabling smooth data exchange and collaboration across platforms.
  • Extensibility: Custom development allows you to extend the capabilities of Microsoft 365 applications, such as SharePoint, Teams, or Outlook, to address specific business needs and provide a more comprehensive user experience.
  • Competitive advantage: By building custom solutions, you can gain a competitive edge by leveraging Microsoft 365's extensive feature set and tailoring it to your organization's unique requirements.

Cons of Custom Development in Microsoft 365

Cons of custom development include:

  • Development complexity: Custom development often requires specialized knowledge and expertise in Microsoft 365 development tools, APIs, and programming languages, which may involve a learning curve or additional resource allocation.
  • Maintenance and upgrades: Custom solutions require ongoing maintenance, updates, and compatibility checks with Microsoft 365 updates and releases, which may necessitate additional resources and time.
  • Cost considerations: Developing custom solutions can involve upfront costs for development resources, licensing, and ongoing maintenance, so it's essential to consider the return on investment and long-term cost implications.

Types of Development in Microsoft 365

Types of development in Microsoft 365 include:

  • SharePoint development: Create custom web parts, workflows, and extensions within SharePoint Online to enhance document management, collaboration, and business process automation.
  • Teams app development: Build custom tabs, messaging extensions, bots, or apps within Microsoft Teams to extend its collaboration capabilities and integrate with external services.
  • Office add-ins: Develop add-ins for applications like Excel, Word, PowerPoint, or Outlook to extend their functionalities and automate tasks.
  • Graph API integration: Leverage the Microsoft Graph API to integrate Microsoft 365 services and access data programmatically, enabling custom integration scenarios and data retrieval.
A screenshot of logos of technologies involved in Microsoft 365 development like SPFX, Azure, Teams, and Graph.
Figure 1: Technologies involved in Microsoft 365 development. | Used with permission from Microsoft. View Full Size

When considering custom development in Microsoft 365, it's important to weigh the advantages and disadvantages, evaluate your specific needs, and assess the resources and expertise available within your organization.

Power Platform: Pros and Cons

Power Platform in Microsoft 365 offers benefits for organizations looking to build custom applications, automate workflows, and analyze data. However, it also comes with some considerations. Here are the pros and cons, along with the types of development that are possible using Power Platform.

Pros of Power Platform in Microsoft 365

Pros of Power Platform include:

  • Low-code/no-code development: Power Platform provides a low-code/no-code environment, allowing users with minimal coding experience to create custom applications, automate processes, and build reports and dashboards.
  • Rapid application development: With its visual development tools and pre-built templates, Power Platform enables fast prototyping and development, accelerating the time to market for custom solutions.
  • Seamless integration: Power Platform integrates with various Microsoft 365 services, such as SharePoint, Teams, and Outlook, as well as external systems and data sources, enabling seamless data exchange and collaboration.
  • Workflow automation: Power Automate (formerly Microsoft Flow) allows users to automate repetitive tasks and workflows, improving efficiency and productivity across the organization.
  • Data analysis and visualization: Power BI provides robust data analysis and visualization capabilities, allowing users to create interactive reports and dashboards to gain insights from their data.

Cons of Power Platform in Microsoft 365

Cons of Power Platform include:

  • Customization limitations: While Power Platform offers many capabilities, complex or highly customized scenarios may require traditional development approaches and coding.
  • Limited extensibility: In some cases, the out-of-the-box capabilities of Power Platform may not meet the specific needs of an organization, requiring additional custom development or integration.
  • Data security considerations: As Power Platform allows users to create custom applications and workflows, proper governance and data security measures should be in place to ensure data protection and compliance.

Types of Development in Power Platform

Types of development in Power Platform include:

  • Power BI: Develop interactive reports and dashboards to analyze data and gain insights. Connect to various data sources, transform and visualize data, and share reports with others in the organization.
  • Power Apps: Build custom applications for web and mobile devices using a visual development interface. Create forms, screens, and workflows to automate processes and leverage data from various sources.
  • Power Automate: Automate workflows and integrate different systems and services by creating automated flows. Trigger actions based on events, such as receiving an email or updating a SharePoint list.
  • Power Virtual Agents: Build chatbots using a guided, no-code interface. Create conversational bots to handle customer inquiries, provide support, or automate tasks.
  • AI Builder: Enhance applications with AI capabilities such as form processing, object detection, prediction models, and text recognition. Train models without writing complex code.
A screenshot of logos of technologies involved in Power Platform development like Power BI, PowerApps, Power Automate, Power Virtual Agents, Power Pages, data connectors, AI Builder, and Dataverse.
Figure 2: Technologies involved in Power Platform development. 
| Used with permission from Microsoft. View Full Size

Power Platform empowers organizations to build custom solutions, automate processes, and analyze data with ease. However, it is essential to evaluate the complexity of your requirements, consider the extensibility needed, and ensure proper governance and security measures are in place.

Resources

The resources needed for custom development and Power Platform differ significantly:

  • Custom development requires a team of experienced developers, quality assurance professionals, project managers, and infrastructure specialists. Additionally, businesses must also have the necessary hardware, software, and infrastructure to support the development and deployment of custom applications.
  • Power Platform, on the other hand, requires significantly fewer resources. Businesses can create custom applications using Power Apps, Power Automate, and Power BI without the need for a team of developers. Power Platform is a cloud-based solution, which means businesses do not need to invest in expensive hardware or infrastructure to use the platform.

Development Lifecycle

The development lifecycle for custom development and Power Platform also differs significantly:

  • Custom development projects often require a longer development cycle, with multiple stages that include design, development, testing, and deployment. Depending on the complexity of the project, this can take several months or even years to complete.
  • Power Platform's development lifecycle is much faster than custom development, with applications being developed in a matter of days or weeks. Power Platform has a simplified development process, with drag-and-drop interfaces that make it easy for non-technical users to create custom applications.
A photo of steps in the software development lifecycle, like requirement analysis, design, implementation, testing, revolution.
Figure 3: Steps in the software development lifecycle. 
| Source: Wikipedia Commons.

Costs and Licensing

Likewise, the costs and licensing considerations for custom development and Power Platform differ:

  • Custom development can be costly, with expenses including hardware, software, development resources, and ongoing maintenance. Additionally, businesses may need to purchase licenses for the software and tools used in custom development projects, which can add to the overall cost.
  • Power Platform, on the other hand, is a cost-effective solution with low entry costs and no hardware or software to maintain. Users can start with a free trial of Power Apps, Power Automate, and Power BI, with additional features and functionality available for a fee. Power Platform's licensing model is based on per-user pricing, with different pricing tiers available based on the needs of the organization.
Photo of electronic calculator and notepad placed over United States dollar bills together with metallic pen for budget planning and calculation.
Figure 4: Consider the costs of custom development versus licenses per user. 
| Source:  Pexels, by Karolina Grabowska.

When to Choose Custom Development

While custom development can be costly and time-consuming, it may be the best choice for businesses with unique needs that cannot be met by off-the-shelf software or low-code/no-code platforms like Power Platform.

Custom development enables businesses to tailor their applications to their specific needs. Additionally, custom development can provide businesses with the ability to integrate with existing systems and applications, which can streamline their processes.

Businesses with complex needs that require extensive customization and integration may find that custom development is the best choice. However, custom development projects can be resource-intensive and may take longer to complete than low-code/no-code solutions like Power Platform.

When to Choose Power Platform

Power Platform is an excellent choice for businesses that want to automate their processes and create custom applications quickly and easily without the need for a team of developers.

Power Platform's low-code/no-code approach makes it easy for non-technical users to create custom applications, and the platform's drag-and-drop interfaces make it easy to design and build applications quickly.

Businesses that require basic customization and automation of their processes may find that Power Platform is the best choice. Additionally, businesses with limited budgets may find that Power Platform is a cost-effective solution that meets their needs without breaking the bank.

Decision Tree

When deciding between Power Platform and custom development in Microsoft 365, consider the following decision tree:

  • Does your project require a high level of customization or complex functionality?
    • Yes: Custom development
    • No: Move to the next question
       
  • Do you have developers with the required expertise and resources for custom development?
    • Yes: Custom development
    • No: Power Platform
       
  • Is the development timeline critical?
    • Yes: Power Platform
    • No: Move to the next question
       
  • Do you have budget constraints for development resources?
    • Yes: Power Platform
    • No: Move to the next question
       
  • Does your project involve simple business processes or require quick prototyping?
    • Yes: Power Platform
    • No: Custom development
       
  • Is the development team looking for a low-code/no-code development environment?
    • Yes: Power Platform
    • No: Custom development
       
  • Are you primarily focused on data analysis and visualization?
    • Yes: Power Platform
    • No: Move to the next question
       
  • Do you require deep integration with external systems or complex API interactions?
    • Yes: Custom Development
    • No: Power Platform

By considering these questions, you can determine whether to choose Power Platform or custom development in Microsoft 365 for your project. Custom development is preferable for highly customized or complex requirements, availability of development expertise, and scenarios where deep integration is necessary. On the other hand, Power Platform is suitable for projects with simple business processes, rapid development timelines, budget constraints, and a focus on low-code/no-code development or data analysis and visualization.

A photo of a generic decision tree.
Figure 5: Use a decision tree and consider your use cases. | Pexels, by fauxels.

Conclusion

Choosing between custom development and Power Platform requires a clear understanding of the organization's needs, available resources, development lifecycle, costs, and licensing considerations. Custom development provides complete customization and integration with existing systems and applications, but can be costly and time-consuming. Power Platform is a low-code/no-code solution that allows businesses to create custom applications quickly and easily, but may not meet the needs of businesses with complex requirements.

Ultimately, the decision between custom development and Power Platform should be based on the specific needs of the organization. Businesses should carefully consider their requirements and budget to determine which solution is best for their needs.

Resources

Power Platform documentation

Microsoft 365 Developer

Rubén Toribio

Rubén Toribio

Rubén Toribio is a software developer with over 13 years of experience in the field, specializing in web development using Microsoft technologies such as SharePoint, .NET, and Azure. He is also Microsoft Certified: Azure Developer Associate and Microsoft Certified: SharePoint Developer, demonstrating his expertise in these areas.

Rubén has a deep understanding of SharePoint development and extensibility, building custom solutions. Throughout his career, Rubén  has been involved in numerous complex projects. He is highly motivated, constantly seeking out new opportunities to learn and stay up-to-date with.

Rubén is passionate about sharing his knowledge and helping others succeed. He is an active member of the tech community, regularly participating in speaking engagements, training sessions and workshops.