Power BI is one of the most powerful business intelligence (BI) tools in the industry. Learn why we think Power BI is the perfect data analytics tool for businesses in a past blog. However, selecting the right license can be confusing.
Choosing the right Power BI license determines who can access reports, what they can do with them, and whether they can collaborate with others. To decide, you must wade through the Microsoft jargon, complex capacity models, and confusing pricing.
The good news? We have already done the hard work for you.
As business intelligence consultants, we help businesses navigate the Microsoft Power BI licensing maze. We can guide you to the right version so you only pay for what you need and not for features you will not use. Our BI consultants have decades of experience and guide companies of all sizes to the best data solutions.
This guide will simplify your decision-making process, so you know exactly what to buy and why.
Power BI is a powerful data analytics and visualization tool. It allows businesses to transform raw data into actionable insights to make data-driven decisions. However, not all Power BI users need the same level of access.
Your Power BI license determines what you can do with the tool, how you share data, and what security and AI features you can access. With a Power BI license, you can:
Create Interactive Dashboards and Reports: Users can connect to multiple sources of data and create custom reports, and design dashboards with easy-to-understand charts, graphs, and KPIs.
Share Insights Across Your Organization: With the right license, it facilitates team collaboration. They can securely share reports with colleagues, executives, or external partners.
Secure Data with Role-Based Permissions: Advanced security features allow businesses to control who can see, edit, or share reports.
Use AI-Powered Analytics for Deeper Insights: The AI-driven features help users spot trends, forecast outcomes, and generate insights automatically.
Microsoft offers three main types of Power BI licenses. The following summary shows what each license type includes and who they are best for:
Power BI Free - Best for Individual Users
What You Get:
Limitations:
Who Should Use It?
Cost: $0
What You Get:
Limitations:
Who Should Use It?
Cost: $10/user/month
What You Get:
Limitations:
Who Should Use It?
Cost: $20/user/month
What You Get:
Limitations:
Who Should Use It?
Cost: Starting at P1 ($4,995/month)
Important Note: Microsoft Fabric Capacity is the newest Power BI license. If you are currently using Power BI Premium, you will need to switch to Fabric at the time of renewal. Power BI Pro and Premium Per User will remain available. For more information about the transition and timeline, please visit Microsoft's website.
If your business has many users who only need to view reports, you might not need individual licenses. Consider Power BI Embedded. This license is best for businesses that have hundreds of report viewers but only a few report creators.
What You Get:
Limitations:
Who Should Use It?
Cost: Starts at $735/month
Here is a simplified decision tree to guide you:
| Feature / Aspect | Power BI Desktop | Power BI Pro | Power BI Premium Per User (PPU) | Microsoft Fabric / Premium Capacity | Power BI Embedded |
| Ideal for | Individual users, learners, or small experiments | Teams needing to publish and share reports/dashboards in shared workspaces. (typically small to mid-sized teams) | Power users and analysts needing AI, large data, or advanced reporting | Enterprise-scale analytics and AI workloads | Companies embedding BI in apps or portals |
| Data Sharing & Collaboration | Not available | Share reports, dashboards, and workspaces | Share and collaborate across users | Enterprise-wide sharing and governance | Share embedded reports with external users |
| Data Storage Limit | 1 GB per dataset | 1 GB per dataset | 100 GB per dataset | 400 GB + per dataset | Scalable by capacity |
| Refresh Frequency | Manual | Up to 8× per day | Up to 48× per day | Up to 48× per day (with advanced scheduling) | Configurable by capacity |
| AI & Machine Learning Features | Not available | Limited | Includes AutoML & AI Insights | Enterprise AI with Copilot & OneLake | ❌ (view only) |
| Paginated (Pixel-Perfect) Reports | Not available | Limited Functionality: Available for creation and publishing in shared workspaces. | Available | Available | Not available |
| Direct Query / Large Model Support | Not available | Basic | Enhanced | Unlimited | Available |
| Security & Governance | Basic | Standard (workspace-level) | Advanced dataflows, sensitivity labels | Enterprise governance & compliance | Controlled via Azure & embedding setup |
| Best Use Cases | Learning Power BI; testing dashboards | Departmental BI; enables publishing and sharing within a small organization. (viewing requires Pro for shared workspaces) | Finance or ops teams using AI and large datasets | Global enterprise BI, real-time IoT, advanced analytics | Customer-facing apps or partner portals |
| Pricing (approx.) | Free | ~$14 user / month | ~$24 user / month | ~$4,995 / month (P1 capacity) | ~$735 / month (starting) |
For mobile viewing of above chart, rotate your phone to landscape.
Microsoft licensing is overwhelming, but you do not have to figure it out alone. The team at 425 Consulting Group is more than just consultants. We are BI experts with decades of experience helping businesses build data-driven strategies. From tool selection to Power BI licensing to implementation, we ensure your Business Intelligence investments drive genuine business value.
Tell us about your Business! We can guide you to the best solution for your business needs.
Note: You can find additional resources in our The Ultimate Guide to Business Intelligence or on our blog. If you are still exploring your BI tool options, check out these expert insights before choosing Power BI or Fabric:
Navigating BI Tools: Find the Perfect Fit for Your Data Analysis Needs
Why Power BI is the Perfect Data Analytics Tool
Kenny leverages the power of Microsoft Power BI and Power Apps to transform businesses for growth. He converts complex data into actionable insights by creating visually appealing reports that uncover hidden trends and drive informed decision-making.
Visit our Business Intelligence page to learn more about how BI can empower your business. Our experienced team of BI consultants is available to discuss your specific needs - contact us directly.
