Complete licensing comparison and cost analysis
Choosing between Power BI Premium capacity and Premium Per User (PPU) can save your organization thousands of dollars—or cost you if you choose wrong. This guide breaks down the real differences in pricing, features, and use cases to help you make the right decision.
$4,995/month
Starting price for P1 SKU (capacity-based)
$20/user/month
Per-user licensing
Understanding Power BI Premium pricing requires knowing the different SKUs and what you get with each tier. Microsoft offers multiple capacity sizes to match your performance and storage needs.
| SKU | Monthly Cost | v-Cores | Memory (GB) | Storage (TB) |
|---|---|---|---|---|
| P1 | $4,995 | 8 | 25 | 100 |
| P2 | $9,995 | 16 | 50 | 200 |
| P3 | $19,995 | 32 | 100 | 400 |
| P4 | $39,995 | 64 | 200 | 800 |
| P5 | $79,995 | 128 | 400 | 1,600 |
Power BI Premium Per User costs $20 per user per month, which includes access to all Premium features on a per-user basis. However, there's a critical catch: everyone who accesses PPU content needs a PPU license.
Unlike Premium capacity where free viewers can access content, every user who views PPU content must have their own PPU license. This includes executives viewing dashboards, stakeholders reviewing reports, and anyone accessing embedded content.
The break-even point between PPU and Premium depends on your total user count. Here's the math:
If you have fewer than 250 users needing Premium features, PPU is typically more cost-effective. At 250+ users, Premium capacity becomes cheaper. At 500+ users, Premium is clearly the winner.
| Users | PPU Cost/Month | Premium P1 Cost | Better Option |
|---|---|---|---|
| 50 users | $1,000 | $4,995 | PPU |
| 150 users | $3,000 | $4,995 | PPU |
| 250 users | $5,000 | $4,995 | ~Equal |
| 500 users | $10,000 | $4,995 | Premium |
| 1,000 users | $20,000 | $4,995 | Premium |
While PPU includes most Premium features, there are critical differences that may affect your decision:
| Feature | Pro ($10/user) | PPU ($20/user) | Premium (P1+) |
|---|---|---|---|
| Dataset & Storage | |||
| Max dataset size | 1 GB | 100 GB | 400 GB |
| Total storage per workspace | 10 GB | 100 GB | 100 TB+ |
| Daily refreshes | 8 | 48 | 48 |
| Advanced Features | |||
| Paginated reports | |||
| XMLA endpoint (read/write) | |||
| Deployment pipelines | |||
| Incremental refresh | |||
| AI features (AutoML, etc.) | |||
| Enterprise & Sharing | |||
| Free viewers (no license) | |||
| On-premises (Report Server) | |||
| Multi-geo deployment | |||
| Autoscale | |||
| BYOK encryption | |||
For enterprise organizations with 500+ employees, we typically recommend Power BI Premium capacityfor its unlimited viewer access and predictable costs. For mid-size organizations (50-200 users) or departments piloting Premium features, PPU offers excellent value.
Yes, you can have both PPU and Premium capacity in the same tenant. Workspaces can be assigned to either. However, content in PPU workspaces cannot be shared with non-PPU users.
Premium capacity has throttling mechanisms. If you exceed CPU limits, queries may slow down or queue. Consider enabling Autoscale or upgrading to a larger SKU if this happens frequently.
Microsoft Fabric includes Power BI Premium capacity plus additional data platform features. Existing Premium P SKUs are being migrated to Fabric (F SKUs). PPU remains a separate per-user option.
Yes, PPU users can access Premium workspace content. The reverse is also true—Premium capacity users can access PPU content if they have a PPU license.
Power BI Embedded uses A SKUs with Azure pay-as-you-go pricing. It's designed for ISVs embedding Power BI in external applications. Embedded and Premium capacity can be used together in the same tenant.
Migration involves purchasing Premium capacity, creating a new Premium workspace, and moving content. The XMLA endpoint can help automate this process. EPC Group can assist with migration planning.
EPC Group has 28+ years of Power BI and Microsoft licensing expertise. We'll analyze your requirements and recommend the optimal licensing strategy for your organization.
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