How to Convert an Environment to a Managed Environment in Power Platform Admin Center

In this “Managed Environment in Power Platform Admin Center” article, we will learn about how to convert an environment to a managed environment in Power Platform step by step, and we will learn what a managed environment offers with respect to managing your Power Platform environment.

Power Platform’s Managed Environments are a game-changer for organizations looking to enhance governance, security, and operational insights within their digital ecosystem. Converting an environment to a Managed Environment equips administrators with advanced tools to monitor, secure, and optimize their Power Platform resources such as Power Apps, Power Automate flows, and Dataverse data. This article provides a step-by-step guide to converting an environment into a Managed Environment within the Power Platform Admin Center and explains the benefits and key considerations of making this transition.

What is a Managed Environment in Power Platform?

A Managed Environment in Power Platform allows administrators to apply advanced governance and monitoring features. These include analytics, enhanced security, sharing controls, and policies to optimize performance and ensure compliance.

By converting an environment to a Managed Environment, organizations can reduce risks, improve oversight, and streamline operations. This is especially valuable for enterprise-scale solutions and production environments requiring advanced governance.

Why Convert to a Managed Environment?

Key Benefits of Managed Environments:

1. Enhanced Governance:
   • Restrict app and flow sharing.
   • Monitor user activity and enforce policies.
2. Improved Security:
   • Protect sensitive data with Data Loss Prevention (DLP) policies.
   • Control data sharing and usage across environments.
3. Advanced Analytics:
   • Gain insights into app and flow usage.
   • Identify and manage underutilized resources.
4. Lifecycle Management:
   • Simplify deployment with built-in pipelines.
   • Monitor app versions and deployments.
5. Proactive Alerts and Notifications:
   • Set up alerts for usage limits, sharing restrictions, and compliance issues.

By leveraging these features, organizations can better align with compliance requirements, reduce operational risks, and maintain control over their Power Platform investments.

Prerequisites for Converting to a Managed Environment

Before you start, ensure the following:

1. Admin Access:
   • You must have Power Platform Admin or Global Admin privileges to make changes.
2. Environment Readiness:
   • Choose the environment carefully. Managed Environments are ideal for production or UAT environments where governance is critical.
3. Licensing Requirements:
   • Ensure that your organization has the appropriate licenses to enable Managed Environments.
4. Backup the Environment:
   • Although converting to a Managed Environment is non-destructive, it is a best practice to back up the environment in case of unforeseen issues.

 

Step-by-Step Guide to Convert an Environment to a Managed Environment

Follow these steps to convert your Power Platform environment into a Managed Environment:

Step 1: Access Power Platform Admin Center

1. Navigate to the Power Platform Admin Center.
2. Log in with your Global Admin or Power Platform Admin credentials.

Tip: Ensure you have access to all the environments in your organization by verifying your permissions in the Admin Center.

Step 2: Locate the Environment

1. In the left-hand menu, click on Environments to view the list of available environments (this navigation is applicable to old or classic Power Platform Center).
2. Locate the environment you want to convert and click on it to access its settings.
3. In the new Power Platform Admin Center, you need to follow this navigation: Power Platform Admin Center home page -> Manage -> Environments

Note: You can select more than one environment to convert an environment in Power Platform Admin Centre.

Step 3: Enable Managed Environments Features

1. Once inside the environment’s settings page, look for the Managed Environment section.
2. Click the Enable Managed Environments button.

Then, we can see the various sections and their descriptions about the managed environment, as below:

Enable Managed Environments

Increase visibility and control for Personal Productivity Environment.

Licensing details

All users in Managed Environments must have a Power Apps, Power Automate, or Dynamics 365 license with premium usage rights.

Auto-claim

If a license auto-claim policy does not already exist, one will be created for the tenant. You can control if the policy applies to Managed Environments only, or to all environments.

Manage sharing

Help reduce risk and keep data secure by limiting how widely apps, flows, and agents can be shared.

Solution checker enforcement

Automatically verify solution checker results for security and reliability issues before solution import.

Check for security and reliability issues in the solution checker results, but do not block solution import for any issues.

Usage insights

Get adoption insights, like top apps and flows, in this environment.

 

Maker welcome content and Enable AI-generated descriptions (preview)

Provide customized welcome content to help makers get started with Power Apps.

Enable AI-generated descriptions (preview)

Let Power Apps do the work for you. If descriptions of apps or solutions are blank, AI will be used to generate them. This will happen when an app is published, or when a solution is deployed. This can help people understand what the purpose of an app or solution is.

Data policies

Help safeguard your organizational data by limiting the connectors available.

Finally click on the “Enable” button; that’s it. Your selected environment(s) will be converted to the managed environment(s).

Step 4: Configure Managed Environment Settings

After enabling Managed Environment, configure the following settings based on your organization’s needs:

1. Sharing Controls:

• Set sharing limits for apps and flows to restrict unauthorized access.
• Define user groups or roles allowed to share solutions.

2. Data Loss Prevention (DLP) Policies:

• Apply DLP policies to enforce data protection standards.
• Prevent sensitive data from being shared with unauthorized apps or users.

3. Analytics and Monitoring:

• Enable analytics to monitor app usage, flow performance, and environment activity.
• Set up notifications for activity thresholds or issues.

4. Notifications:

• Configure proactive notifications for app sharing, policy violations, and data usage limits

Step 5: Verify the Conversion

1. After enabling and configuring Managed Environment features, verify the changes:
   • Check the Environment Details page to ensure Managed Environment is activated.
   • Confirm that sharing controls, DLP policies, and analytics are functioning as expected.
2. Test the environment by creating or accessing an app or flow to validate governance settings.

Step 6: Communicate the Changes

Once the environment is converted to a Managed Environment, inform users and stakeholders about the new governance features. Provide documentation or training if needed to help them understand:

• Sharing restrictions.
• Compliance requirements.
• Monitoring and analytics benefits.

Best Practices for Managed Environments

To maximize the benefits of Managed Environments, follow these best practices:

1. Start with Critical Environments:
   • Convert production or UAT environments first to minimize risks and improve oversight.
2. Regularly Monitor Analytics:
   • Use the analytics dashboard to identify unused apps or flows and optimize resources.
3. Enforce Policies Consistently:
   • Regularly review and update DLP policies to align with organizational changes.
4. Enable Notifications:
   • Set up alerts for app sharing, data usage, and policy breaches to address issues proactively.
5. Evaluate User Feedback:
   • Collect feedback from users to fine-tune the governance settings.

Common Challenges and Solutions

Challenge 1: Resistance from Users

• Solution: Educate users about the benefits of Managed Environments and how they enhance security and compliance.

Challenge 2: Policy Conflicts

• Solution: Regularly review policies to ensure they are aligned with organizational goals.

Challenge 3: Performance Impact

• Solution: Monitor performance metrics and optimize resource allocation using analytics.

When to Use Managed Environments

Managed Environments are best suited for:

• Enterprise-Scale Deployments: With multiple apps, flows, and users.
• Compliance-Driven Organizations: Where data protection and regulatory requirements are critical.
• Production or UAT Environments: To maintain control and ensure quality.

When to use Managed Environments vs. Non-Managed Environments in Power Platform

Here’s a detailed comparison in a tabular format to help you understand when to use Managed Environments vs. Non-Managed Environments in Power Platform:

Criteria	Managed Environment	Non-Managed Environment
Governance Requirements	For environments requiring strict governance, including app sharing restrictions and policy enforcement.	For environments with minimal governance needs, offering more flexibility and fewer restrictions.
Use Case	Best for production and UAT environments, ensuring compliance, security, and efficient operations.	Ideal for development, testing, or small-scale projects where governance is less critical.
Security and Compliance	Required for compliance-heavy industries (e.g., finance, healthcare) and environments handling sensitive data.	Suitable for scenarios where regulatory compliance is not mandatory or sensitive data is not involved.
Analytics and Insights	Offers detailed analytics on app and flow usage, user activity, and resource optimization.	Provides basic monitoring and limited analytics capabilities.
User and App Sharing	Enables controlled sharing, restricting access to authorized users or groups only.	Allows unrestricted sharing, providing more flexibility to users.
Notifications and Alerts	Includes proactive notifications for policy breaches, app sharing, and environment limits.	Lacks built-in notifications; issues must be manually monitored.
Cost Implications	Higher costs due to advanced governance and monitoring features.	More cost-effective for scenarios where advanced features are not required.
Lifecycle Management	Streamlines application lifecycle management (ALM) with built-in pipelines and version control.	Requires manual management of app and flow deployments.
Scalability	Recommended for enterprise-scale deployments with multiple apps, flows, and users.	Suitable for smaller teams or simpler solutions with fewer dependencies.
Customization Flexibility	Limited customization options due to governance policies and restrictions.	Highly flexible for building and testing solutions without governance constraints.
Proactive Alerts	Allows administrators to set threshold alerts for usage and compliance issues.	Does not support automated alerts; manual tracking is necessary.
Trial or Temporary Use	Not recommended for temporary projects or experimentation due to configuration overhead.	Ideal for trial environments, proof of concept (POC), or temporary needs.
Integration Needs	Suitable for highly integrated solutions requiring structured deployment across environments.	Best for standalone solutions or integrations with minimal dependencies.

Decision Guidelines

1. Use Managed Environments for:
   • Production or UAT environments where governance, security, and monitoring are crucial.
   • Organizations requiring compliance with strict regulatory standards.
   • Scenarios involving enterprise-scale deployments.
2. Use Non-Managed Environments for:
   • Development, testing, or sandbox environments where flexibility is needed.
   • Short-term projects, proof of concept (POC), or experimental work.
   • Cost-sensitive scenarios where advanced governance is not necessary.

This comparison helps align your environment choice with organizational goals and technical requirements.

FAQs about Managed Environments

1. Does enabling Managed Environment affect existing apps and flows?

No, existing apps and flows will continue to function, but they may now be subject to new governance policies.

2. Are Managed Environments free?

No, they require appropriate licensing for features like advanced governance and analytics.

YouTube Video Demo: Managed Environments in Power Platform Explained

Conclusion: Enable Managed Environments in Power Platform

Thus, in this article, we have learnt how to enable managed environments in Power Platform or how to convert an environment to a managed environment in Power Platform Admin center tool.

Converting an environment to a Managed Environment in the Power Platform Admin Center is a simple yet powerful way to enhance governance, security, and operational efficiency. By following the step-by-step process outlined in this guide, you can ensure a seamless transition and leverage the full potential of Managed Environments.

Take Action Now: Start by identifying a critical environment and enable Managed Environment features to experience the benefits firsthand.

For more details, visit the official Power Platform Managed Environments Documentation.

 

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