Dynamics 365 extensibility has traditionally relied on C# plug‑ins—a powerful but sometimes heavy approach for implementing business logic. As organizations demand faster delivery, easier maintenance, and more inclusive development models, low‑code plug‑ins are emerging as a compelling alternative.

In this post, we’ll explore what low‑code plug‑ins are, how they compare to traditional C# solutions, and why they are shaping the future of Dynamics 365 development.

Why they matter

If you’ve built with Dynamics 365 long enough, you’ve probably felt the tension between moving fast and building right. Traditional C# plug‑ins give us power and precision, but also longer cycles, steeper skill requirements, and technical debt when every small rule becomes a custom class. Low code is changing that balance.

Why talk about low‑code plug‑ins now?

Server‑side low‑code has crossed from “nice prototype” to credible architecture for many kinds of business logic in Dataverse. With low‑code plug‑ins, makers and pro devs can author server‑executed logic triggered by Dataverse events, using Power Fx without packaging and registering .NET assemblies. The result? Faster delivery, more maintainable rules, and less ceremony for common patterns.

A quick note on maturity: low‑code plug‑ins are currently a preview capability, and Microsoft explicitly calls that out. That means evaluate carefully, apply governance, and pilot before broad production rollout. We’ll discuss how to do that safely in our session at Community NA.

So what exactly is a low‑code plug‑in?

Think of it as a Dataverse event handler written in Power Fx. Instead of compiling a C# class that implements IPlugin, you author a Power Fx expression that runs server‑side in response to CRUD events (create, update, delete) on a Dataverse table. The logic lives in Dataverse, deploys via solutions, and can reference Dataverse data and Power Platform connectors—without writing a single line of C#.

There are two types of low-code plug-ins: automated (event‑driven on table operations) and instant (manually triggered).

How do low‑code plug‑ins compare with C# plug‑ins?

Let’s be honest and practical.

What we gain with low code:

• Speed to value. Author server‑side rules in minutes, not days. No project scaffolding, no assembly upload, no PRT steps.

• Approachability. Makers who already know Power Fx can contribute to the business layer, not just app formulas.

• Reusability & governance. Logic sits in Dataverse, packaged in solutions, governed via Power Platform pipelines for ALM—so we can ship, review, and roll back like pros.

Where C# still shines:

• Complexity & control. When you need advanced pipeline operations, batched operations, custom service calls, or fine‑grained telemetry, a compiled plug‑in still gives you the deepest hooks.

• Performance‑critical patterns. Community deep dives show that while simple low‑code rules are quick, heavy data operations (e.g., repeated Lookup/CountIf patterns across large sets) may incur overhead vs. optimized C# queries. Use the right tool for the job.

Under the hood, low‑code plug‑ins participate in the same event pipeline concept as C# plug‑ins; the difference is the authoring model and runtime binding for Power Fx expressions. That’s part of why they feel “native” in Dataverse.

Low-code vs. traditional plugins: A quick comparison

Where low‑code plug‑ins shine: Real scenarios

Here are patterns we’ve shipped (or seen teams ship) that benefit from low code:

Field‑level validations that must be enforced server‑side

When business rules need to apply everywhere (forms, mobile, integrations), server‑side validation is the only safe option. Low-code plug-ins provide that with no need to build a C# project from scratch. Use them for “must‑have” constraints—credit checks, cross‑field validations, or status transitions.

Lightweight enrichment and normalization

Used with create/update, clean addresses, standardize phone formats, set default owner/team based on region, or stamp SLA dates. These are the classic “one‑record in, one‑record updated” rules that don’t require orchestration across systems.

Server‑side calculations that outgrow business rules

Business rules are excellent for UI behavior, but they’re limited in scope and don’t always cover server execution across all channels. If a calculation must hold in data imports and API integrations, move it to server logic such as low‑code plug‑ins or formula columns, depending on the requirement.

Reusable validations across multiple apps

Because the logic lives in Dataverse, multiple model‑driven and canvas apps get the same rules by default—with no copy/pasted app formulas.

H2: Best practices you can apply immediately

• Think “small, sharp, synchronous.” Keep logic focused and deterministic. If your expression starts to emulate a flow engine, it probably suits a flow or C# instead.

• Prefer queries that the platform can optimize. Avoid patterns that loop through large tables in Power Fx. If you must query broadly, consider moving that part into a flow or C# step designed for bulk operations.

• Default to server‑side enforcement for data integrity. Use business rules for UX; use low‑code plug‑ins for truth.

• Instrument your decisions. Even if you’re not writing C#, add operational breadcrumbs: clear error messages, consistent status codes, and admin views that surface “why” a record failed validation. You’ll thank yourself later.

• Respect platform limits. If you call connectors from low‑code plug‑ins or hand off to flows, model the request budget early to avoid throttling surprises.

 A quick history lesson: the evolution of extensibility

Extensibility in Dynamics and Dataverse has moved from compiled assemblies and real‑time workflows to a spectrum that now includes formula columns and low‑code plug‑ins. The goal isn’t to replace pro code; it’s to make more of the business layer declarative, testable, and governed. And when we need the full fidelity of C#, it’s still there—better than ever with Power Platform Tools for Visual Studio and CLI.

What makes this “the future of extensibility”?

Low-code plug-ins shift business logic closer to business people—without sacrificing governance. They democratize the part of the stack that used to require a specialist for every minor change. That doesn’t replace pro‑dev work; it frees it. We can save C# for the missions where it’s uniquely valuable, letting teams move faster on everything else.

Join us at Community Summit NA!

If you want to deliver faster, reduce technical debt, and bring makers and developers into the same extensibility model, I’ll be presenting a session at Community Summit NA 2025. I’ll share practical patterns, common pitfalls, and a straightforward migration path for teams who want to try low‑code plug‑ins without risking production stability.

What you’ll learn:

• How low‑code plug‑ins work: Understand how Power Fx runs in the Dataverse pipeline, what’s supported server‑side, and how to reason through triggers, stages, and outcomes.
• Real-world use cases: See solutions in action for validations, server‑side enrichment, and reusable functions.
• The evolution of extensibility: Explore where business rules, formula columns, low‑code plug‑ins, flows, and C# plug‑ins fit today and in upcoming release waves.

Come discover how low‑code plug‑ins are shaping the future of Dynamics 365 development—enabling faster delivery, reduced technical debt, and greater agility in solution design. See you there.