Power BI License Types: A Clear Breakdown of Options

Power BI is a powerful business intelligence (BI) tool from Microsoft that helps you visualise and analyse your data. With Power BI, you can create impressive reports and dashboards that make your data easy to understand, helping you make smarter decisions. 

Before you start using Power BI, it’s important to pick the right licence type. Choosing the right Power BI licence is important to get the most out of the platform. Power BI offers several licence types: Free, Pro, Premium, Premium Per Capacity(PPC), and Premium Per User (PPU), each suited for different business needs and sizes. 

In this blog post, we will explain these options clearly to help you choose the best one for your data analysis needs.

Is Power BI Free?

Power BI is a free to download software. Let us provide a detailed explanation of Power BI licensing in order to give you a better answer.

• Power BI Desktop: This is the application you use to create reports and dashboards. It’s completely free to download and use. 
• Power BI Service: This is where you share and collaborate on your reports with others. The service itself has a free tier (using a Microsoft Fabric licence), but some features require a paid licence (Pro or Premium Per User) depending on your needs.

So, you can experiment and build reports for yourself without spending anything. But for sharing and collaboration, you might need a paid licence depending on the specific functionalities you require. However, it’s much cheaper compared to some of Power BI’s main competitors.

Understanding Power BI License Types

Power BI licenses control access to the features and functionalities of the Power BI service. While Power BI Desktop, the application for creating reports and dashboards, is free, the service tier requires a license to unlock its full potential. Let’s explore the different types of Power BI licenses available:

Free License

The Power BI Free license is an individual user license that provides basic functionalities for creating, and viewing Power BI dashboards and reports. It’s an excellent starting point for users who are new to Power BI or those who need to perform personal data analysis and visualizations.

Features and Functionalities Included

• Data Visualization: Create and view reports with interactive data visualizations.
• Data Import: Connect to various data sources such as Excel, CSV, SQL databases, and more.
• Report Sharing: Limited to saving and viewing reports on the local machine.
• Basic Data Preparation: Perform basic data transformations and cleaning.

Target Audience and Use Cases

• Individual Users: Ideal for individuals or small teams who need to create and analyze reports for personal or limited internal use.
• Learning and Development: Suitable for those looking to learn and explore Power BI capabilities without incurring costs.

Limitations and Considerations

• Collaboration: No ability to share reports or dashboards with others.
• Storage: Limited data storage capacity.
• Data Refresh: Limited to manual data refreshes and a restricted number of scheduled refreshes.

Pro License

Power BI Pro license is a subscription-based service that provides advanced features. This license is designed for users who need to create, share, and collaborate on reports and dashboards, ensuring that data-driven decision-making is accessible and efficient across an organization.

Features and Functionalities Included Compared to Free License

• Collaboration and Sharing: Share reports and dashboards with other Power BI users and collaborate in real-time.
• App Workspaces: Create, manage, and distribute shared workspaces for team collaboration.
• Data Refresh: Enhanced data refresh capabilities, including up to eight scheduled refreshes per day.
• APIs and Embedding: Access to Power BI APIs for custom development and embedding capabilities.

Target Audience and Use Cases

• Small to Medium Businesses: Businesses that need to share and collaborate on reports and dashboards across teams.
• Data Analysts and BI Professionals: Professionals who require advanced data analytics and collaboration features.

Cost and Pricing Information

• Cost: $10.00 per user per month (pricing may vary based on region and specific offerings).

Premium License

Power BI Premium has a licensing option for Power BI users that offers enhanced performance and features beyond what is available with the standard Power BI Pro license. With Power BI Premium, organizations can scale their analytics and data visualization capabilities to meet the needs of large user bases and complex data models.

Features and Functionalities Included Compared to Pro License

• Dedicated Capacity: Provides dedicated cloud computing and storage resources for Power BI workloads.
• Advanced AI and Data Processing: Access to advanced AI capabilities and larger dataset handling.
• Increased Storage and Refresh Rates: Higher data storage limits and up to 48 scheduled refreshes per day.
• Paginated Reports: Support for paginated reports (pixel-perfect reporting).

Target Audience and Use Cases

• Large Enterprises: Organizations with large-scale data requirements and high user counts need dedicated performance.
• Advanced Analytics Teams: Teams that require extensive data processing and advanced AI capabilities.

Cost and Pricing Information

• Cost: $20.00 per month.

Premium Per Capacity License

Power BI Premium Per Capacity (PPC) is a licensing option within Microsoft’s Power BI platform, offering dedicated capacity for organizations with larger-scale data needs. This licensing model provides enhanced performance, greater scale, and additional features compared to the Power BI Pro license.

Features and Functionalities Included Compared to Other Licenses

• Dedicated Capacity: Similar to Premium, it offers dedicated capacity but with more flexibility in scaling.
• Full Pro License Features: Includes all Pro features plus Premium capabilities like enhanced data refresh and large model support.
• Increased Flexibility: Allows organizations to purchase capacity rather than individual licenses.

Target Audience and Use Cases

• Scalable Enterprises: Businesses that require scalable and flexible data analytics solutions.
• High Performance Needs: Teams that need high performance and extensive data handling capabilities.

Cost and Pricing Information

Cost: Varies based on the required capacity and number of vCores (virtual cores).

Concept of “Capacity” and vCores

• Capacity: Refers to dedicated resources (CPU, memory, and storage) allocated for Power BI services.
• vCores: Virtual cores represent the computing power allocated within the dedicated capacity, impacting performance and scalability.

Embedded License

Power BI Embedded is a Microsoft Azure service that enables developers to embed interactive Power BI visualizations and reports into custom applications. With Power BI Embedded, developers can create compelling data visualizations and insights within their applications, providing users with a seamless experience without requiring them to switch between applications or interfaces.

Features and Functionalities Included

• Embedding Capabilities: Embed Power BI reports and dashboards into custom applications and websites.
• API Access: Full access to Power BI REST APIs for extensive customization and integration.
• Scalability: Supports scalable deployment options based on usage and demand.

Target Audience and Use Cases

• Developers and ISVs (Independent Software Vendors): Ideal for developers and ISVs looking to embed analytics into their applications.
• Custom Solutions: Organizations that need to integrate Power BI reports seamlessly into their existing systems.

Cost and Pricing Information

• Cost: Pricing is based on the usage and scale of the embedded solutions, typically charged per session or capacity.

Concept of Embedding Power BI Reports

• Embedding: Involves integrating Power BI reports and dashboards into external applications using Power BI REST APIs, providing interactive analytics directly within the application interface.

Knowing about the different Power BI license types and costs is essential for selecting the right plan to meet your organization’s needs. By evaluating the features, target audience, use cases, and costs of each license type, you can ensure that your business leverages the full potential of Power BI effectively.

Different Power BI License Types Compared

Choosing the Right Power BI License Type

Choosing the right Power BI license type depends on several factors, including user needs, organization size, budget, desired features, and collaboration requirements. Here’s a guide to help you make the right choice:

1. User Needs and Requirements

• For individual users or small teams needing basic data analysis, the Free license may suffice.
• For users requiring collaboration, sharing, and advanced data refresh capabilities, the Pro license is more suitable.

2. Organization Size and Budget

• Small to medium-sized businesses with limited budgets can start with the Pro license for its affordability and essential features.
• Larger enterprises with more extensive data analytics needs may opt for Premium or Premium Per Capacity for dedicated capacity and advanced capabilities, considering their budget.

3. Desired Features and Functionalities

• If your organization requires advanced AI capabilities, larger data handling, and paginated reports, Premium or Premium Per Capacity would be more appropriate.
• For embedding Power BI reports into custom applications, the Embedded license provides the necessary features.

4. Collaboration and Sharing Requirements

• If collaboration and sharing are key requirements, the Pro license is essential as it allows for sharing reports and dashboards with other users.
• Organizations with extensive collaboration needs and large user bases may benefit from Premium for its dedicated capacity and enhanced collaboration features.

In conclusion, consider your specific needs, budget, and desired features when choosing the right Power BI license type for your organization.

How to Upgrade or Switch Between Power BI License Types?

You can easily switch or upgrade your Power BI licensing option by following the below described steps:

1. Sign In: Log in to your Power BI account.
2. Navigate to Admin Portal: Click on the gear icon in the top right corner and select “Admin portal.”
3. Manage Licenses: Go to “User management” and select the user whose license you want to change.
4. Choose License: Click on “Assign licenses” and select the desired Power BI license (Pro or Premium).
5. Confirm Changes: Review and confirm your selection, then save changes.

Conclusion

Power BI has different types of licenses to suit different users and budgets. Depending on what you need, organization size, desired features, and collaboration needs, you can choose the right license. Starting with the free version, you can explore your data and then upgrade if you need more features. This makes it easy and flexible to use Power BI for your business.