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Power BI Premium Capacity Is Retiring - Is Microsoft Fabric Your Next Move?
#FocusOnBestPractices
George Philip
Sr. Vice President (Data Analytics and Emerging Technologies)
March 3, 2025
THE AUTHOR
George Philip
Sr. Vice President (Data Analytics and Emerging Technologies)
The Microsoft Power BI software landscape is evolving, and Microsoft is once again at the forefront of transformation. Why? That’s because the tech giant has officially announced the retirement of Power BI Premium Capacity SKUs, making way for the more advanced and integrated Microsoft Fabric. However, organizations using Power BI Premium Per User (PPU) can rest assured that this SKU remains unchanged.
This shift underscores Microsoft’s commitment to a unified, AI-powered data ecosystem, compelling businesses to rethink their analytics strategy. This shift is not just a Power BI Premium licensing update, it’s a fundamental change in how enterprises manage, analyze, and leverage their data.
Microsoft Fabric, the company’s latest all-in-one analytics solution, is poised to take center stage, offering a modernized approach to data management and AI-driven insights. With Microsoft Fabric capacity, organizations can scale their analytics workloads efficiently while optimizing performance and cost. As businesses navigate these changes, now is the time to explore whether Microsoft Fabric is the right fit for their analytics needs. Additionally, Fabric Premium provides advanced capabilities for enterprises looking to enhance their data strategy with greater flexibility and power.
Key Dates to Know Power BI Capacity Retirement
- Power Bl Premium Sales End: New customers cannot purchase Power BI Premium after July 1, 2024.
- Renewals for Non-EA Customers: Existing non-EA customers can renew until January 1, 2025. Post that, they must transition to Microsoft Fabric. Additional capacity purchases are allowed until the end of their agreement.
- EA Customers: Can continue using Power BI Premium until their contract ends. If renewal is post January 1, 2025, they must switch to Fabric. Additional capacity purchases are allowed until the end of their agreement.
- Sovereign Cloud Customers: Unaffected as Fabric is not yet available in Sovereign Cloud environments.
Benefits and Competitive Edge
Microsoft Fabric represents the natural progression from Power BI Premium, aligning with Microsoft’s broader vision for enterprise-wide data analytics. Beyond the familiar capabilities of Power BI Premium, Fabric introduces a suite of enhanced services, including OneLake and various Azure-integrated solutions, designed to deliver a more unified and scalable data experience.
The key benefits include:
Microsoft Azure Consumption Commitment (MACC) Alignment: Fabric spending contributes toward your MACC agreement, optimizing cloud investment.
Flexible Pricing Models: Fabric offers a Pay-As-You-Go (PAYG) option, providing greater financial flexibility.
Lower Entry Point: PowerBI fabric capacity is included from F64 tier only. Messaging should be that this capacity comes in higher Fabric levels but those under MS EAs would not be impacted much.
Cost Efficiency: Many businesses find Power BI Premium costly and underutilized. Microsoft Fabric offers pay-as-you-go flexibility, enabling instance pausing and real-time capacity monitoring. Once usage stabilizes, switching to reserved instances can cut costs by up to 40%.
While Power BI Fabric capacity offers enhanced capabilities, transitioning from Power BI Premium comes with its own set of challenges. You must evaluate these changes carefully to facilitate a seamless migration and fully leverage Microsoft’s evolving data ecosystem. By optimizing Power BI Fabric capacity, businesses can achieve greater scalability, efficiency, and cost-effectiveness in their analytics operations.
Power BI Premium (P-SKU) licenses include on-premises deployment capabilities through the Power BI Report Server. However, Microsoft Fabric does not support this functionality. Organizations relying on Power BI Report Server will need to maintain SQL Server Enterprise with Software Assurance (SA) to ensure continued access and operational continuity.
Power BI Premium vs. Microsoft Fabric: Understanding the Shift
| Feature | Power BI Premium (P SKU) | Microsoft Fabric (F SKU) |
|---|---|---|
|
Subscription Plans |
Monthly, Annual Plans |
Monthly, Annual, Pay-as-You-Go |
|
Pricing Model |
Standard Global Pricing |
Regional Pricing Flexibility |
|
Azure Integration |
Limited Capabilities |
Full Integration, including Trusted Workspace |
How to Prepare for the Transition
As the retirement deadline approaches, you need to act now to ensure a smooth migration. Here’s how to get started:
- Assess Your Current Power BI Usage – Understand which reports, dashboards, and datasets are running on Power BI Premium Capacity and evaluate their business impact.
- Explore Microsoft Fabric’s Capabilities – Compare Fabric’s features with your existing Power BI environment and identify how it aligns with your organization’s data strategy.
- Plan for Migration – Work with your IT and analytics teams to map workloads, reconfigure licensing, and ensure a seamless transition.
- Engage Experts for a Smooth Transition – Partnering with Korcomptenz can help streamline migration, optimize costs, and maximize the benefits of Microsoft Fabric.
Korcomptenz is Your Go-To Partner for Microsoft Fabric Success
With over 20 years of cross-industry experience, Korcomptenz is a trusted Microsoft AI Cloud Partner, Microsoft Fabric Partner, and Azure Analytics specialist.
We specialize in Microsoft’s Intelligent Data Platform, including Fabric and Azure Databricks, and help enterprises accelerate digital transformation using Microsoft Dynamics 365, AI Cloud solutions, and Azure Analytics.
Our proven track record ensures seamless integration, enhanced efficiency, and measurable results.
Our Offerings
- Microsoft Fabric Advisory and Consulting
- Seamless Implementation and Change Management
- Readiness Assessment and Simulation
- Reliability Managed Support Services
Final Thoughts
The retirement of Power BI Premium Capacity marks a significant shift in Microsoft’s data ecosystem, but it also unlocks new opportunities for organizations to modernize their analytics capabilities. With Microsoft Fabric’s unified approach, AI-powered insights, and flexible licensing, businesses can take their data strategy to the next level.
Ready to explore Microsoft Fabric service? Let our experts at Korcomptenz help you make the transition seamless and future-proof your analytics journey. Contact us now!
