SharePoint vs Dataverse: Choosing the Right Data Source for Your Power Platform Solution
- Marco P.
- Jun 17
- 2 min read
When building apps and automation with Power Platform, one of the first and most important decisions is selecting the right data source. Two of the most commonly used options are SharePoint and Dataverse. Both are well-integrated with Power Apps and Power Automate, but they differ significantly in terms of features, licensing, scalability, and security.
In this article, we’ll help you decide when to use SharePoint and when to use Dataverse for your Power Platform solution.
📁 When to Use SharePoint
SharePoint is a widely used document and list management platform available as part of Microsoft 365. It is a convenient and cost-effective option, especially for organizations with existing Microsoft 365 E3 or E5 licenses, since it does not require any additional premium licensing for Power Apps and Power Automate.
✅ Ideal Scenarios for SharePoint:
Simple apps with basic CRUD operations
Internal tools that don’t require complex data relationships
Teams that already work heavily in SharePoint and want quick app extensions
Cost-conscious projects where avoiding premium licensing is a priority
When you have a large audience but don't how many user will actually access your application.
⚠️ Limitations of SharePoint:
Limited relational data modeling (no native support for complex relationships or lookups like in Dataverse)
Weaker security model: Role-based access is possible, but it's far less granular and harder to manage than in Dataverse
Scalability and performance issues with larger datasets or heavy usage
No built-in data types like currency, choices, or image fields tailored for apps
🧬 When to Use Dataverse
Dataverse is the native data platform for Power Platform and offers robust capabilities designed specifically for app development, data modeling, and enterprise-grade solutions.
Though it requires a premium license, the features and benefits it provides often justify the cost for more complex or long-term solutions.
✅ Ideal Scenarios for Dataverse:
Enterprise-grade apps requiring scalable data models
Advanced security using row-level security and role-based access control (RBAC)
Relational data with one-to-many or many-to-many relationships
Need for data validation, auditing, or business rules
Integration with custom connectors or external systems
💡 Additional Benefits:
Built-in support for Power Automate, Power BI, and AI Builder
Easier implementation of complex forms, data logic, and workflows
Cleaner separation between data, logic, and UI
⚖️ Making the Right Choice
Feature | SharePoint | Dataverse |
💰 Licensing | Included with Microsoft 365 (E3/E5) | Requires premium licensing |
🔒 Security | Basic, limited to SharePoint permissions | Advanced role-based + row/column-level security |
🔄 Relational Data | Not supported natively | Fully supported |
🏗️ Scalability | Limited | High, enterprise-ready |
⚙️ Business Rules & Logic | Minimal | Robust, with rules and automation |
📈 Integration & Extensibility | Basic | Deep Power Platform integration |
📝 Conclusion
Choosing between SharePoint and Dataverse depends on your business needs, budget, and long-term goals.
Use SharePoint when you need a quick, low-cost solution for a small internal team with simple data structures.
Use Dataverse when you require secure, scalable, and professional-grade solutions with rich data relationships and automation.
In some cases, you may even combine the two—for example, using SharePoint for document storage and Dataverse for structured business data.
Making the right choice early ensures your Power Platform solution is secure, scalable, and maintainable in the long run.
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