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Which Power BI License is right for me

Who this impacts: Clients that had a Power BI Basic license and clients that have ZoneReporting Data Warehouse.

Microsoft Licensing Models (Link)

  1. Power BI Basic: This licensing tier no longer exists. Closest to this is the Fabric (Free) option.
  2. Microsoft Fabric: Users with free licenses can use the Power BI service to connect to data and create reports and dashboards for their own use. They can't use the Power BI sharing or collaborating features with others, or publish content to other people's workspaces. However, Pro and PPU users can share content and collaborate with free users if the content is saved in workspaces hosted in Premium capacity.
  3. Fabric Capacity: This operates like Power BI Premium but spans across the entire Fabric suite. It provides capacity-based licensing, meaning you buy computing resources rather than per-user licenses.
  4. Power BI Pro: Power BI Pro is an individual per-user license that lets users create content and also read, and interact with content that others publish to the Power BI service. Users with this license type can share content and collaborate with other Power BI Pro users. Only Power BI Pro users can publish or share content with other Pro users or consume content that's created by other Pro users, unless a Power BI Premium capacity hosts that content.
  5. Power BI Premium Per User (PPU): A PPU per-user license provides the license holder with all of the capabilities of Power BI Pro plus access to most Premium capacity-based features. A Power BI PPU license unlocks access to extra features, capabilities, and types of content that are only available with a paid license. This access is limited to the PPU license holder and other colleagues who also have a PPU license. For example, in order to collaborate and share content in a PPU workspace, all users must have a PPU license.

Defining User Roles and Needs

  1. Create/Edit Power BI Reports:
    1. Require licenses to create/edit Power BI reports.
    2. Options: Power BI Pro, Premium Per User, or access through Fabric Capacity.
  2. View Power BI Reports:
    1. Need to view published reports.
    2. Options:
      1. Pro: Needed to view reports shared by Pro users; limited capabilities.
      2. PPU: Needed to view reports shared by PPU users.
      3. Fabric: Unlimited viewing without individual licenses.

Explore Licensing Options

  1. Option 1: Power BI Pro Licenses for Developers + Free for Viewers
    1. Purchase 5 Power BI Pro licenses for the developers. Viewers can access reports via the Pro developers' sharing, but this will only work with limited distribution scenarios.
  2. Option 2: Fabric Capacity:
    1. Purchase Fabric Capacity based on your expected usage and workload (measured in capacity units). This allows unlimited report sharing within the organization without requiring viewers to have individual licenses.

Use Case Comparison

  1. Developers: Developer uses PPU to: 
    1. Create and publish reports with Premium capabilities.
    2. Work with advanced features and datasets. 
  2. Viewers

Scenario A: All Viewers Need PPU

  1. For every viewer to access reports hosted in a Premium workspace, they also need a PPU license.

Scenario B: Fabric Capacity

  1. If you purchase Fabric Capacity instead, viewers do not need PPU licenses.
  2. Developers can still use PPU to publish reports into the Fabric Capacity workspace.

Cost Comparison

  1. Power BI Premium Per User:
    1. Current pricing: $20/user/month; For 50 users: 50 x $20 = $1,000/month
    2. April 1, 2025 Pricing: $25/user/month; For 50 users: 50 x $25 = $1,250/month
  2. Fabric Capacity:
    1. Pricing is a bit complicated since it is based on capacity (Link)
    2. Supports unlimited viewers, so could be more cost-effective if your audience grows beyond 50 users or usage increases.
  3. Advantages of PPU
    1. Lower Initial Costs: Ideal for smaller teams or moderate report consumption needs.
    2. Easy Setup: No need to configure and manage capacity resources.
    3. Premium Features: Full access to advanced features on a per-user basis.
  4. Disadvantages of PPU
  1. Scaling Costs: Adding more viewers quickly becomes expensive.
  2. Limited Flexibility: Less suitable for enterprise scenarios where report access needs grow significantly.

Recommendation

An easy start would be to use Power BI Premium Per User for our ZoneReporting Data Warehouse installs because it works and is easy to set-up but this may not be the right option for you.  For example if your organization: 

  • Is small-to-mid-sized with fixed, limited reporting needs → PPU is a cost-effective choice.
  • Expects growth in reporting and user base → Fabric Capacity may offer better long-term value.

Please consult with Microsoft and get details on the Fabric Capacity pricing and how it aligns with your usage patterns.  For this you will need to assess Workload Needs that includes an estimate of the compute resources (capacity units) your reports and datasets require post ZoneReporting install.

Additional Links for Reference

https://www.microsoft.com/en-us/power-platform/products/power-bi/pricing

https://learn.microsoft.com/en-us/power-bi/consumer/end-user-license

https://learn.microsoft.com/en-us/power-bi/fundamentals/service-features-license-type

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