What are Dataverse Plug-ins, and when should you use them instead of Power Automate?

Question

Accepted Answer

A Dataverse Plug-in is custom .NET code that executes within the Dataverse event pipeline when specific events occur, such as Create, Update, Delete, Assign, or SetState operations.
    

    Use Plug-ins when:
    
        Real-time execution is required.
        Complex server-side business logic is needed.
        Transactions must roll back if validation fails.
        High-performance processing is required.
    

    Use Power Automate when:
    
        Code-free automation is sufficient.
        External integrations are needed.
        Long-running processes are involved.
        Business users need to maintain workflows.
    

    
        
            Feature
            Plug-in
            Power Automate
        
        
            Execution Speed
            Very Fast
            Slower
        
        
            Transaction Support
            Yes
            No
        
        
            Code Required
            Yes
            No
        
        
            External Systems
            Limited
            Excellent

What are Dataverse Plug-ins, and when should you use them instead of Power Automate?

Answer with Explanation

How to use this answer better

Feature	Plug-in	Power Automate
Execution Speed	Very Fast	Slower
Transaction Support	Yes	No
Code Required	Yes	No
External Systems	Limited	Excellent