Should I Use SharePoint, Dataverse or SQL for Power Apps?

This question usually comes up very early in a Power Apps project.

Sometimes even before the first screen is built.

“Should we just use SharePoint?”
“Is Dataverse worth it?”
“Can we connect directly to SQL?”

At that point, all three options seem reasonable.
The app is small.
The data is limited.
Everything feels flexible.

Months later, teams often find themselves asking the same question again — but this time because something isn’t working as expected. After reviewing many Power Apps implementations during redesigns and post-go-live reviews, one pattern is consistent:

The data source choice rarely breaks the app immediately.
It defines how painful the app becomes later.

A Very Familiar Real-World Pattern

This sequence appears repeatedly:

• App starts small
• Data source is chosen for speed of delivery
• App works well initially
• Usage grows
• Requirements expand

Then problems surface:

• Performance slows
• Permissions become messy
• Logic becomes harder to manage
• Changes take longer than expected

At that point, switching the data source feels expensive — even if it’s clearly the right move.

SharePoint: Easy to Start, Easy to Outgrow

SharePoint is often the first choice because:

• It’s already available
• It’s easy to set up
• It works well for small apps

In real projects, SharePoint works best when:

• Data volume is limited
• Relationships are simple
• Apps are lightweight and departmental

Where teams run into trouble:

• Large lists
• Complex relationships
• Delegation limits
• Performance issues at scale

Lesson learned:
SharePoint is excellent for starting quickly — but many apps eventually outgrow it.

Dataverse: Designed for Power Apps (With Trade-Offs)

Dataverse is often recommended as the “right” choice for Power Apps. And in many cases, it is.

Dataverse works well when:

• Data relationships are complex
• Security needs to be granular
• Multiple apps share the same data
• Long-term scalability matters

However, in real projects, teams also encounter:

• Licensing implications
• Governance requirements
• Additional setup overhead

Dataverse isn’t difficult — but it requires intentional design and buy-in from stakeholders.

Lesson learned:
Dataverse pays off when apps are expected to grow and live long-term.

SQL: Powerful, but Often Misunderstood

SQL is frequently chosen because:

• Data already exists there
• Teams trust it
• It handles large volumes well

SQL works well with Power Apps when:

• Data is well-structured
• Indexing is appropriate
• Queries are delegation-friendly
• Performance is designed for analytics-style access

Where teams struggle:

• Complex joins
• Delegation limitations
• Logic spread between SQL and the app
• Licensing surprises

Lesson learned:
SQL is powerful — but Power Apps exposes poor SQL design very quickly.

Why There’s No “Best” Option

The biggest mistake teams make is looking for a universally “best” data source.

In reality:

• SharePoint optimises for simplicity
• Dataverse optimises for Power Platform integration
• SQL optimises for scale and structure

Problems arise when the data source is chosen based on:

• What’s familiar
• What’s cheapest upfront
• What’s quickest to set up

Rather than:

• Expected data growth
• Number of users
• Security requirements
• Long-term ownership

A Practical Way Teams Decide (That Holds Up)

Teams that made fewer changes later usually asked:

• How big will this data get?
• How many users will rely on this app?
• Will multiple apps reuse this data?
• Who owns the data long-term?

Those answers usually made the choice obvious.

This relationship between Power Apps, data sources, and long-term design is where many projects either scale smoothly — or slowly accumulate friction. For readers interested in understanding how Power Apps, data architecture, and automation fit together in real solutions, this Microsoft Power Apps approach is explained here: Microsoft Power Apps & Power Automate

Why Teams Revisit This Decision Too Late

The data source choice is often made:

• Before real usage is known
• Before performance matters
• Before governance becomes visible

By the time issues appear:

• Data has grown
• Apps depend on it
• Migration feels risky

The decision wasn’t wrong — it was just made without future context.

Final Thought

Choosing between SharePoint, Dataverse, and SQL isn’t about which one is better.

It’s about:

• Matching the data source to the life expectancy of the app
• Designing for how the app will be used later, not just today

Power Apps works best when the data source decision is treated as a foundation, not a shortcut.

Learning Power Apps the Right Way

For those looking to understand how data source choices impact Power Apps performance, licensing, and scalability, the Microsoft Power Apps Course by ExcelGoodies focuses on real project scenarios rather than tool comparisons — helping teams make decisions that age well.

Check the Upcoming batch details

Editor’s Note

This article reflects recurring data architecture discussions observed across live Power Apps implementations, often revisited during performance optimisation, governance reviews, and redesign efforts. The patterns described emerged consistently across multiple projects rather than isolated cases.

Insights compiled with inputs from the ExcelGoodies Trainers & Power Users Community.
 

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