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.
Why Do You Need a Power BI License?
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.
Power BI License Types & Who Should Use Them
Microsoft offers three main types of Power BI licenses. Here is what they include and who they are best for:
Power BI Free - Best for Individual Users
What You Get:
- Create reports and dashboards
- Connect to data sources
- Analyze data with AI-powered tools
Limitations:
- No sharing—you cannot collaborate with others
- Cannot use premium features like paginated reports or AI modeling
Who Should Use It?
- Business professionals who want to experiment with Power BI
- Data analysts who do not need to share reports
- Students or individuals learning Power BI
Cost: $0
Power BI Pro - Best for Teams that Need Collaboration
What You Get:
- Everything in Power BI Free plus:
- Share and collaborate on reports and dashboards
- Refresh reports up to 8 times per day
- Access all Power BI cloud features
Limitations:
- Not designed for large datasets (1GB model limit)
- No premium AI features like AutoML or paginated reports
Who Should Use It?
- Small to mid-sized teams that need to share reports
- Business teams that rely on Power BI for weekly or daily reporting
- Companies that want self-service BI without needing IT support
- Organizations that work with Microsoft 365 (Power BI Pro is included in Microsoft 365 E5)
Cost: $10/user/month
Power BI Premium Per User (PPU) - Best for Advanced BI & AI
What You Get:
- Everything in Power BI Pro plus:
- Larger datasets (100GB model limit)
- AI-powered insights & AutoML
- Paginated reports for pixel-perfect layouts
- Data refreshes up to 48 times per day
- Advanced dataflows and direct query support
Limitations:
- More expensive than Power BI Pro
- Not ideal for organizations with hundreds of users (Fabric Capacity may be a better fit)
Who Should Use It?
- Companies using AI for trend forecasting or anomaly detection
- Data analysts and BI professionals who work with large datasets
- Finance and enterprise reporting teams that need paginated reports
- AI-driven businesses using advanced analytics
Cost: $20/user/month
Microsoft Fabric (Previously: Power BI Premium) - Best for Enterprise-Scale Data & AI
What You Get:
- Everything in Power BI Premium Per User plus:
- Unlimited dataset sizes (scales beyond 400GB+)
- AI-powered insights & machine learning with Microsoft Copilot
- Real-time analytics for IoT, finance, and operational data
- Enterprise data storage & management with OneLake
- Data refreshes up to 48 times per day
- Advanced security, governance, and compliance controls
Limitations:
- Higher cost compared to Power BI Pro or PPU
- Requires technical expertise to maximize data engineering & AI features
- Not necessary for small-to-mid-sized businesses with simpler BI needs
Who Should Use It?
- Large enterprises needing scalable, AI-powered analytics
- Manufacturing, finance, and IoT-driven businesses requiring real-time data processing
- Organizations managing petabytes of data across multiple sources
- Companies transitioning from Power BI Premium Capacity who need dedicated computing power
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 renewal. Power BI Pro and Premium Per User will remain available. Read more about the transition and timeline here.
Power BI Embedded: A Cost-Saving Option for Report Viewing
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:
- Share Power BI reports without requiring each user to have a Pro license
- Embed reports inside an internal app or website
- Scale usage based on demand
Limitations:
- Users cannot create or edit reports, they can only view them
- Requires an IT team to manage embedding
Who Should Use It?
- Companies with large teams that only need report viewing
- Organizations embedding dashboards into customer portals
- Software providers that want to embed analytics into their applications
Cost: Starts at $735/month
A Simple Guide to Choose the Right Power BI License
Here is a simplified decision tree to guide you:
- Do you just need business intelligence & dashboards you want to share across your organization? Power BI Pro
- Do you have large data sets bigger than 1GB or require more frequent data refreshes? Power BI Premium Per User
- Do you need large-scale data management, AI, or real-time analytics? Microsoft Fabric (F2–F64, depending on scale)
- Do you need both? Power BI + Fabric (Capacity-Based Licensing)
- Do you want a way to share reports without per-user licenses? Power BI Embedded
Our BI Consulting Experts Can Help
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
Bryan Ruttkay is the Director of Business Intelligence at 425 Consulting, where he leads a team focused on providing tailor-made business analytics and reporting solutions to clients nationwide.
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.
